With the conclusion of a volatile first quarter in 2026, the Amplify Energy & Natural Resources Covered Call ETF (NDIV) demonstrated the resilience of its underlying index (VettaFi Energy and Natural Resources Covered Call Index). While the broader market grappled with restrained buying behavior as shown by ETF inflows data in March, the index delivered a total return of 13.99% from late February through the end of March.
High dividend dividend ETFs like NDIV are coming off a strong quarter as evidenced by the S&P 500 High Dividend rising 6.5% for the quarter. The index outpaced the broader S&P by 10.8% to reach its largest quarterly margin of outperformance since March of 2021.
See More: March Madness: ETF Inflows Revealed an Emphasis on Defense
Energy and Materials Outperformance
The primary engines for NDIV’s growth were the Energy and Materials sectors. The former held a dominant 79.68% average weight in the fund’s index, while contributing a substantial 8.90% total return.
The energy sector’s overall performance in March 2026 was astounding given that others struggled with a risk-off sentiment. Energy ETFs defied the outflows trend with a record $5 billion in monthly inflows for March according to flash flows data from State Street Investment Management (SSIM).
Energy’s surge was fueled by oil prices going parabolic amid tensions in the Middle East. The sector ended the quarter with a record $12 billion in rolling three-month flows thanks to a high upgrade-to-downgrade ratio from increased earnings expectations. Investors are looking to the energy sector for both capital appreciation and income thanks to the high-margin, cash-flow-heavy profiles of the sector’s giants.
In the meantime, the materials sector accounted for a smaller weight at 20.32%, but punched well above its weight class. The sector added a 26.85% return to NDIV, contributing 5.10% to the index’s performance.
Key Contributors
Within these sectors, here are five names that stood out with their outsized impact on the index’s success:
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LyondellBasell Industries NV (LYB): This materials giant was the top contributor, posting a 41.73% return and adding 2.10% to the total index performance.
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Dow Inc. (DOW): Another powerhouse in the materials sector, Dow returned 35.54%, which contributed 1.75% to the overall gain.
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Atlas Energy Solutions Inc. (AESI): Leading the charge for the energy sector, Atlas returned 36.24% (1.50% attribution to the total return).
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Chord Energy Corp. (CHRD): This domestic energy company contributed 1.05% to the return on the back of a 32.59% price increase.
- CVR Partners, LP (UAN): Rounding out the top five, CVR Partners posted a 27.67% return, contributing 1.22% to NDIV’s overall gain.
See More: Fueling February: What Holdings Powered The NDIV ETF?
Tactical Exposure Amid Uncertainty
With Q1 in the history books, geopolitical friction and higher-for-longer rates continue to add uncertainty in Q2. NDIV’s focus on options-based income within the energy sector provides a tactical advantage for current as well as prospective investors.
As investors navigate a flattening yield curve and persistent inflation, NDIV’s strong performance suggests that it’s a compelling option for those seeking growth and income.
To learn more about NDIV, click here.
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VettaFi LLC (“VettaFi”) is the index provider for NDIV, for which it receives an index licensing fee. However, NDIV is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of NDIV.
Originally published on ETF Trends
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