This is an actively managed ETF that invests mainly in dividend-paying large-cap US stocks while tactically using options to seek additional income. It targets both capital gains and current income.

It suits income-oriented investors who want dividend income plus options-based extra returns and who prefer active management.

The ETF is actively managed by Horizon Investments.

The fund combines a dividend strategy, which holds large-cap US dividend stocks as its core, with an options strategy that tactically uses options to boost income. Rather than mechanically tracking an index, it has an active structure in which the management team adjusts stock and options positions at its discretion.

• Combination of dividend stock holdings and an options income strategy
• Active management that does not track an index

Assets under management (AUM) stand at $351.7M, and the total expense ratio is 0.70% per year.

Active management and the use of options make its fee somewhat higher than that of passive dividend ETFs, but its character differs because it aims to enhance income.

Because the structure combines large-cap dividend stocks with options income, it generally follows dividend stocks in strong markets, but the options strategy can make upside and downside volatility differ from that of passive dividend ETFs. Short-term performance depends on interest rates and investor appetite for dividend stocks.

In environments with strong demand for income, capital interest tends to continue flowing into options-based income ETFs, and fund flows can shift with the direction of interest rates and changes in preference for dividend stocks. The fund sits within the active income category.

Its strength is active management that combines dividends with options income, while its drawbacks are a higher fee than passive funds and the potential for the options strategy to cap upside.

Comparable ETFs in the same dividend category shown in the table include SCHD, VYM, and VIG, which are lower-fee passive dividend ETFs. This ETF has an active structure with added options income, so its character differs. You may also want to consider JEPI, which boosts income through covered calls, and DGRO, which focuses on dividend growth.

Here are the points to review before investing in DIVN. As an active income ETF, it is worth checking how its fee, the nature of its options strategy, and its management approach differ from passive dividend ETFs.

The options strategy boosts income but can limit gains in sharp rallies, and because the fund is actively managed, its performance depends on management skill. The fee burden is also larger than for passive dividend ETFs.

If you want an active ETF that combines dividends with options income, it is worth considering. If low-cost passive dividend exposure is your priority, SCHD or VYM is the better fit, while DIVN suits those who value additional options income.