Is a 25-bp Fed Rate Cut Already Priced In on Wall Street? ETFs to Consider
Fed Interest Rate Expectations: Market analysts predict a 25 basis point interest rate cut by the Fed, with a 96.1% probability, amid a soft labor market and mixed economic data, including a surprising 0.6% rise in U.S. retail sales for August.
Consumer Spending Trends: Despite resilient retail sales, consumers are cautious, seeking value and deals, as noted by Best Buy's CEO, indicating a shift in shopping behavior during the back-to-school season.
ETFs and Investment Strategies: Options Income ETFs are highlighted for their potential to generate high yields and cushion against volatility, though they come with risks such as higher fees and capped upside potential.
Highlighted ETFs: Several ETFs employing covered call strategies are mentioned, including Global X Nasdaq 100 Covered Call ETF (QYLD), Amplify CWP Enhanced Dividend Income ETF (DIVO), and JPMorgan Equity Premium Income ETF (JEPI), each with varying yields and fee structures.
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Market Overview: The U.S. stock market has surged over 30% since April but faces concerns over high valuations, particularly in AI, and a warning from the "Buffett Indicator" suggesting potential overheating as market capitalization exceeds GDP by more than double.
Dividend Investing Appeal: Amidst market volatility and economic uncertainty, dividend exchange-traded funds (ETFs) are becoming increasingly attractive to investors seeking steady income, with a focus on both high-yield and dividend growth stocks.
Current Dividend Trends: The dividend yield on the S&P 500 is at its lowest since the dotcom bubble, prompting investors to consider higher-yielding dividend-based ETFs for better returns.
Highlighted Dividend ETFs: Several ETFs are noted for their performance and yields, including the First Trust Dow Jones Global Select Dividend Index Fund (FGD), First Trust Morningstar Dividend Leaders Index Fund (FDL), and iShares International Select Dividend ETF (IDV), among others.

Tax-Loss Harvesting: The annual tax-loss harvesting is underway, with advisors selling stocks at a loss to offset gains from earlier in the year, leading to significant market activity and potential distortions in stock valuations.
Opportunities in Quality Stocks: Despite the trend of selling off underperforming stocks, there may be opportunities to acquire quality companies at lower prices, particularly those with strong fundamentals and dividends, such as IBM and other "Dogs of the Dow."
Market Dynamics: The current market environment is characterized by forced selling due to tax reasons, which can create inefficiencies and present buying opportunities for disciplined investors looking for undervalued stocks.
Focus on Long-Term Value: Investors are encouraged to look beyond short-term market fluctuations and consider long-term potential in companies that are experiencing temporary setbacks, particularly those with solid financials and growth prospects in emerging sectors like AI.
Income Distributions Announced: Amplify ETFs has announced October income distributions for several of its income ETFs, with amounts per share ranging from $0.11645 to $1.49450, all payable on October 31, 2025.
ETF Details: The ETFs listed include the Amplify Bitcoin Max Income Covered Call ETF (BAGY), Amplify Bitcoin 2% Monthly Option Income ETF (BITY), and others, each with specific ex-dates and record dates of October 30, 2025.
Company Overview: Amplify ETFs, managed by Amplify Investments, has over $15.5 billion in assets under management as of September 30, 2025, focusing on growth, income, and risk-managed strategies.
Investment Considerations: The announcement includes disclaimers about the nature of the information, emphasizing that past distributions do not guarantee future payments and advising consultation with financial professionals regarding investment risks.
Overview of Option Income ETFs: Amplify CWP Enhanced Dividend Income ETF and Amplify CWP International Enhanced Dividend Income ETF focus on building diversified portfolios of U.S. and international stocks, respectively, while strategically writing covered calls to generate income. In contrast, YieldMax NVDA Option Income Strategy ETF employs a more aggressive, single-stock approach with high yields but significant risks.
Investment Strategy and Risks: While the Amplify ETFs offer more sustainable yields (around 4.6% and 5.5%) and a reliable income stream, the YieldMax ETF's high yield (81%) may be misleading, as it relies heavily on one stock and risks depleting capital over time. Investors are advised to tread carefully with option income ETFs due to potential volatility and idiosyncratic risks.
Fed Interest Rate Expectations: Market analysts predict a 25 basis point interest rate cut by the Fed, with a 96.1% probability, amid a soft labor market and mixed economic data, including a surprising 0.6% rise in U.S. retail sales for August.
Consumer Spending Trends: Despite resilient retail sales, consumers are cautious, seeking value and deals, as noted by Best Buy's CEO, indicating a shift in shopping behavior during the back-to-school season.
ETFs and Investment Strategies: Options Income ETFs are highlighted for their potential to generate high yields and cushion against volatility, though they come with risks such as higher fees and capped upside potential.
Highlighted ETFs: Several ETFs employing covered call strategies are mentioned, including Global X Nasdaq 100 Covered Call ETF (QYLD), Amplify CWP Enhanced Dividend Income ETF (DIVO), and JPMorgan Equity Premium Income ETF (JEPI), each with varying yields and fee structures.
Amplify ETFs Income Distributions: Amplify ETFs announced income distributions for various ETFs, with amounts per share ranging from $0.12000 to $1.38700.
Key Dates: All listed ETFs have an ex-date and record date of August 28, 2025, with payments scheduled for August 29, 2025.
Diverse ETF Offerings: The ETFs include options focused on Bitcoin, international dividends, growth and income strategies, and U.S. Treasury investments.
Company Overview: Amplify ETFs manages over $12.6 billion in assets and offers a range of actively managed and index-based investment opportunities.










