International dividend ETF IDVO outperforms US-focused DIVO with higher yield and returns in 2023.
The Amplify CWP International Enhanced Dividend Income ETF (IDVO) has outperformed its US counterpart, the Amplify CWP Enhanced Dividend Income ETF (DIVO), in 2023 by about 5 percentage points year-to-date and nearly 10 points over the past year. Both funds use the same covered-call strategy managed by Capital Wealth Planning, but IDVO focuses on non-US developed markets, offering a higher yield of 5.58% compared to DIVO's mid-4% range. The higher yield is driven by international dividend payers like European banks and Japanese financials, which distribute a larger share of earnings than US mega-caps. However, IDVO has slightly higher fees, foreign withholding taxes, and a shorter track record. Investors might consider reallocating new contributions to IDVO or partially rotating holdings, especially in tax-advantaged accounts, while monitoring currency and dividend trends that could affect the relative advantage.
The Amplify CWP International Enhanced Dividend Income ETF (IDVO) has outperformed its US counterpart, the Amplify CWP Enhanced Dividend Income ETF (DIVO), in 2023 by about 5 percentage points year-to-date and nearly 10 points over the past year. Both funds use the same covered-call strategy managed by Capital Wealth Planning, but IDVO focuses on non-US developed markets, offering a higher yield of 5.58% compared to DIVO's mid-4% range. The higher yield is driven by international dividend payers like European banks and Japanese financials, which distribute a larger share of earnings than US mega-caps. However, IDVO has slightly higher fees, foreign withholding taxes, and a shorter track record. Investors might consider reallocating new contributions to IDVO or partially rotating holdings, especially in tax-advantaged accounts, while monitoring currency and dividend trends that could affect the relative advantage.
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