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Covered call ETF IDVO offers 6% yield without eroding principal, doubling SCHD's income sustainably.

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14 Sep 2026
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Covered call ETF IDVO offers 6% yield without eroding principal, doubling SCHD's income sustainably.

The Amplify CWP International Enhanced Dividend Income ETF (IDVO) provides a 6.1% annualized yield, nearly double the Schwab U.S. Dividend Equity ETF's (SCHD) 3.15%, by tactically selling call options on international stocks. Unlike many high-yield covered call ETFs that erode net asset value (NAV) over time, IDVO has shown strong total returns and principal preservation since inception. Its active management allows flexibility in option strategies, aiming to enhance income without sacrificing share value. While IDVO charges a higher expense ratio (0.65% vs. SCHD's 0.06%), it offers a balanced approach for investors seeking higher income without risking principal erosion.

The article highlights a covered call ETF strategy offering higher yields without eroding net asset value, contrasting with the more traditional dividend ETF SCHD. On Pluang, SCHD trades at USD 34.35, up 0.67% as of Sep 15, 2026 02:03 WIB, near its 52-week high of $35.21. This shows steady investor interest in dividend-focused ETFs even as alternatives like IDVO seek to enhance income through options strategies.

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