FT Cboe Vest S&P 500 Dividend Aristocrats Target Income ETF (KNG) is downgraded to hold due to persistent underperformance versus dynamic option-writing peers. KNG's ATM option strategy caps upside, limiting participation in bull markets and resulting in a 1.13% total return loss over the past year. The fund's high 8.7% yield is attractive, but monthly payouts are variable and lack consistent growth despite tax-efficient return of capital distributions.
Dividend Aristocrats are attractive for defensive investing, especially in a potential recession scenario. This ETF combines Dividend Aristocrats with a covered call strategy. This sounds appealing but has not produced alpha to-date.
Investors seeking income with diversification to offset risk can find some attractive prospects within the ETF arena.
| - Industry | - Sector | - CEO | CXA Exchange | US33739Q7051 ISIN |
| US Country | - Employees | 21 Nov 2025 Last Dividend | - Last Split | - IPO Date |
This company focuses on generating income through a strategic investment approach, primarily targeting the securities within a specific index. By allocating at least 80% of its total assets to securities that form part of this index, the company aims to follow a rules-based buy-write strategy. This strategy not only looks at stock dividends but also involves earning from option premiums. With a principal objective of achieving a level of annualized income that surpasses the S&P 500® Index's annual dividend yield by approximately 8%, the firm sets its sights on income generation as its primary goal. In addition to this, the company has a secondary goal of capital appreciation, aiming to grow the investment capital of its clients over time.
This product focuses on the primary goal of the firm which is to generate a consistent level of income higher than the annual dividend yield of the S&P 500® Index. By investing in securities that form part of a rules-based buy-write index, clients are offered a strategy that aims to yield income from both stock dividends and option premiums at a targeted rate of approximately 8% above the benchmark index.
Although the firm prioritizes income generation, it also considers capital growth to be important for long-term investment success. Through the same strategic investment in securities within the index, alongside income generation, the strategy inherently aims for capital appreciation. This secondary goal ensures that clients can potentially benefit from not only the income generated but also from an increase in their investment's market value over time.