IDVO Outperforms DIVO in Yield and Total Return

International equity income funds are presenting a compelling alternative to domestic options, with the Amplify CWP International Enhanced Dividend Income ETF (IDVO) demonstrating superior performance compared to its U.S. focused sibling, the Amplify CWP Enhanced Dividend Income ETF (DIVO). Over the past year, IDVO has returned 29.6%, outpacing DIVO's 19.42%. The year-to-date returns further emphasize this trend, with IDVO up 16.58% and DIVO at 11.97%.

The yield advantage for IDVO stems from its focus on developed international markets, where European banks, Japanese financials, and Canadian institutions often distribute a larger share of earnings. IDVO currently offers a 5.58% distribution yield, while DIVO's yield is in the mid-4% range. Investors should consider the implications of foreign withholding taxes for taxable accounts, as these can reduce the net yield advantage, making tax-advantaged accounts potentially more suitable for IDVO holdings.

Globally, major indices showed mixed performance: the S&P 500 rose 0.27%, the Dow Jones 0.85%, and the Nasdaq 100 0.23%. The Russell 2000 gained 0.77%. European markets saw the FTSE 100 up 0.67%, and Asian markets reported a 0.73% rise in the Nikkei 225.