DIVO vs IDVO: Which Is the Better Pick in 2026?

Overview

DIVO and IDVO are both dividend-focused ETFs from Amplify that use covered call options to enhance distributions, but they operate in different geographic markets. DIVO invests in U.S. dividend-paying equities and has been operating since 2016, while IDVO targets international dividend-paying stocks (held as ADRs) and launched in 2022. Both aim to generate current income as the primary objective through a combination of underlying dividends and option premiums.

How they differ

The core difference is geography: DIVO captures U.S. dividend payers, while IDVO targets international large and mid-cap companies with dividend and earnings growth histories. IDVO's distribution rate runs 120 basis points higher at 5.86% versus DIVO's 4.66%, though IDVO has a shorter track record (less than two years of operation). DIVO is substantially larger, with $7.61B in AUM compared to IDVO's $1.39B, and carries a slightly lower expense ratio of 0.56% versus 0.66%. Both charge monthly distributions and employ covered call overlays on their respective baskets; IDVO adds interest rate hedging to its international equity sleeve, a structural feature absent from DIVO's domestic approach.

Who each is best for

DIVO: Fits investors seeking steady U.S. dividend income with a multi-year operational history and the comfort of a larger, more established fund. The lower distribution rate suits those balancing income needs with some capital growth exposure.

IDVO: Designed for investors wanting international dividend exposure beyond U.S. markets, willing to accept a higher yield in exchange for currency and geopolitical risks. Suits portfolios seeking diversification into developed-market dividend stocks with hedging mechanics already embedded.

Key risks to know

• Covered call cap risk: Both funds write calls on their holdings, which caps upside participation if underlying stocks rise sharply. The premium collected supports distributions but forgoes equity appreciation above the strike price.

• Currency exposure in IDVO: International holdings introduce foreign exchange risk. While the interest rate hedge may reduce some volatility, currency fluctuations can affect NAV and distributions independently of equity performance.

• NAV erosion at elevated yields: IDVO's 5.86% distribution rate, combined with a short operational history, raises questions about the sustainability of that yield relative to underlying equity returns. If the covered call program fails to generate sufficient premium, distributions may rely partly on return of capital, eroding NAV over time.

• Liquidity and size disparity: DIVO's $7.61B in AUM and decade-plus history provide deeper liquidity and a longer performance record to evaluate. IDVO's $1.39B and recent inception create higher execution risk around option pricing and fund viability if assets decline further.

• International equity and political risk: IDVO's exposure to developed-market international stocks introduces geopolitical, regulatory, and economic cycle risks distinct from U.S. equities, which may amplify during periods of trade friction or currency volatility.

Bottom line

If you want a larger, established U.S. dividend fund with a moderate yield and lower expense ratio, DIVO offers proven scale and a longer track record. If you prioritize international diversification and can accept higher distribution yield alongside currency and geopolitical exposure, IDVO presents a different geographic play—though its short history and smaller asset base warrant closer scrutiny of distribution sustainability. Past performance does not predict future results, and the efficacy of either fund's covered call program depends on continued market conditions and implied volatility levels.