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Oil rally lifts NDIV energy covered-call ETF amid Iran-linked risks

Brent crude rose to $97.95 a barrel, pushing NDIV up 40.8% year to date and placing Crescent Energy and Northern Oil and Gas at about 6% of assets each.

Reported · Written up by our desk · ETFs

Oil prices continued higher Tuesday, with Brent crude rising 1% to $97.95 a barrel and briefly touching $99.46, according to ETF Trends citing the Associated Press. The move comes as fighting tied to the war with Iran has clouded hopes for reopening the Strait of Hormuz to tankers, adding to uncertainty for energy markets.

The pressure and volatility spilled into broader trading, with the S&P 500 down 0.4% and the Dow Jones Industrial Average lower by 520 points Tuesday morning, the AP reported. The Nasdaq composite slipped 0.3%, while the 10-year Treasury yield held at 4.78%, its highest level since fall of 2023, per the report.

Within the ETF space, the Amplify Energy and Natural Resources Covered Call ETF, NDIV, has returned 40.8% year to date, more than double the 17.4% average for its ETF Database Materials category, ETF Trends reported. The fund is designed to combine dividend-paying energy and natural resource stocks with monthly covered calls targeting 10% or more in total annualized income, according to Amplify.

NDIV’s structure also means recent sector strength has concentrated top holdings, with Crescent Energy and Northern Oil and Gas each at about 6% of assets, ETF Database data cited by ETF Trends showed. The article also notes Crescent Energy topped second-quarter estimates with revenue up 55.3% year over year, Northern Oil and Gas beat estimates with free cash flow up 400% from the prior quarter, and other top positions include AngloGold Ashanti, Petrobras, and Noble Corp.

Latest closeWTI crude $90.70 ▲0.5%|Brent $95.32 ▲0.7%|S&P 500 7,666.60 ▲0.5%

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