Advisors face many challenges in 2022, but chief among them is how to combat inflation’s eroding impact on portfolios while also generating income for clients.
In the upcoming webcast, Solving the Inflation & Income Challenge for Investors, Christian Magoon, Founder and CEO, Amplify ETFs; Michael Venuto, Co-Founder & CIO, and Toroso Investments, LLC; and Kevin Simpson, Founder and CIO, Capital Wealth Planning, LLC, will seek solutions to the income and inflation challenge.
For example, the Amplify CWP Enhanced Dividend Income ETF (DIVO) is an actively managed income-generating tool. The fund writes covered calls on individual holdings, not an index. Selling covered calls involve selling options on underlying securities an investor already holds long positions in. The idea behind this strategy is to guard against downside in the underlying security, generate some profits in sideways markets, and bolster a portfolio’s income stream. Additionally, the dividend and option income may provide lower share price volatility compared to the overall market during times of broad-based market declines.
Additionally, the Amplify Inflation Fighter ETF (NYSE Arca: IWIN), an actively managed strategy, invests in asset classes that seek to benefit, either directly or indirectly, from inflation. The actively-managed approach enables IWIN to identify and act on opportunities and risks across inflation-friendly asset classes. IWIN has a first-to-market approach of owning a mix of stocks and other securities, as well as futures linked to commodities. The portfolio is comprised of stocks, SPACs, convertible debt, commodity REITs, and ETFs or futures that are linked to commodities, including but not limited to oil, gold, and bitcoin.
“We believe IWIN provides investors a diversified and dynamic way to combat inflation’s impact on broad-based portfolios,” according to Amplify.
Financial advisors who are interested in learning more about income in inflationary periods can register for the Tuesday, March 15 webcast here.