Amplify ETFs CEO on ETFs with income-focused strategies
Watch on YouTube ↗  |  February 18, 2026 at 18:20 UTC  |  2:36  |  CNBC
Speakers
Dominic Chu — Host
Christian Magoon — CEO of Amplify ETFs

Summary

  • Income investing has evolved from simple sector rotation (buying Utilities/Staples) to sophisticated active strategies using covered calls.
  • A "two-engine" approach combining stock dividends and option premiums provides versatility and potential tax benefits (Return of Capital) during market volatility.
  • International equities are identified as a key opportunity for this strategy, provided there is rigorous active security selection to manage risk.
Trade Ideas
Ticker Direction Speaker Thesis Time
LONG Christian Magoon
CEO of Amplify ETFs
Magoon advocates for a strategy mixing "high quality US equities" (DIVO) and "high quality international stocks" (IDVO) with an "active managed covered call approach." He highlights that the international version was up significantly (41% in the prior year mentioned) by using this tactical approach. In volatile markets, relying solely on price appreciation is dangerous. Generating yield from two sources—dividends and option premiums—buffers returns. Furthermore, option income often counts as "Return of Capital," which reduces the investor's cost basis rather than being taxed immediately as ordinary income. LONG. These active ETFs offer a superior risk-adjusted way to capture income compared to passive indexing in choppy markets. Covered calls cap upside potential during aggressive bull runs; international exposure introduces currency and geopolitical risks.
WATCH Christian Magoon
CEO of Amplify ETFs
Magoon observes, "It used to just be about owning consumer staples stocks and utility stocks... But it's gotten a lot more sophisticated." The "old playbook" of hiding in defensive sectors for yield is becoming obsolete. Investors are better served by seeking yield through structural advantages (options strategies) on high-quality broad equities rather than concentrating risk in low-growth defensive sectors. WATCH / ROTATE. Implicit suggestion to reduce reliance on these specific sectors for income in favor of active option strategies. If volatility crashes, option premiums evaporate, potentially making traditional high-yield sectors attractive again relative to covered call funds. 0:45