This dividend-paying ETF may help protect investors during wild market swings.

Capital Wealth Planning's Kevin Simpson is recommending to clients the Amplify CWP Enhanced Dividend Income ETF (DIVO), which focuses on blue-chip companies likely to increase future dividends.

"We want strong, powerful dividend growth," the firm's chief investment officer Kevin Simpson told "ETF Edge" on Monday. "That's, more than anything, the fuel that feeds our engine."

DIVO is a five star-rated Morningstar fund and was launched in December 2016. The Amplify ETFs website lists Microsoft and Procter & Gamble as its top holdings.

The ETF also uses a covered call options strategy to generate more gains. Simpson contends it can increase capital appreciation potential while still minimizing risk exposure.

"The covered call piece is implemented as a means of harvesting volatility to protect a little bit of the downside," he said. "We tactically sprinkle in some short-term, out of the money covered calls."

When asked about whether selling covered calls forfeits upside reward potential, Simpson claims there's a balance at play.

"We're thinking about how can we capture 80% to 90% of the rising market and limit the drawdown in the participation in a down-market to 65% or 75%," he said. "Covered calls work best when you need them ... [the] most."

DIVO is virtually flat so far this year.