Yield chasing ETFs may have jumped the shark, warns Amplify ETFs CEO

Describes QYLD as the "formulaic index product" on the NASDAQ 100 that started the trend "about 10 years ago." While acknowledged as the pioneer, it is contrasted with newer "active" strategies (like DIVO) that try to solve "legacy issues with leaving too much capital appreciation on the table." It serves as a passive benchmark rather than a top pick. Neutral; view as a legacy beta product for the sector rather than an optimal alpha strategy. Capped upside during strong bull markets due to systematic call writing.

Magoon highlights DIVO (launched 2016) as an "actively managed option income ETF to write options on individual securities" that aims to balance "capital appreciation with attractive income." In a market saturated with "formulaic" index products or dangerous "yield gamble" funds that destroy principal, DIVO's active strategy of selecting individual stocks and writing options selectively offers a sustainable "total return" alternative. Long DIVO as a "smart yield" allocation that avoids the capital destruction of higher-yielding peers. Underperformance of active stock selection; lower headline yield compared to competitors.