FTHI - KNG: A King Among Buy-Write Strategies

2024-03-11 17:51:37 ET

Summary

• FT Cboe Vest S&P 500® Dividend Aristocrats Target Income ETF uses a buy-write strategy with dividend aristocrats to generate income and yield.
• The KNG ETF has a diversified portfolio of 67 stock holdings and 66 positions in options, with a concentration in Consumer Staples and Industrials sectors.
• KNG has outperformed other S&P 500 buy-write ETFs since 2018, offering high dividend yield and potential for capital appreciation. However, its distributions may be variable and expense ratio is high.

Using options to generate extra income and yield on a portfolio isn't a new concept, but it's one that was normally left to specialized options traders. Exchange-traded funds, or ETFs, solved the access problem, with a slew of funds now available in the marketplace that use the technique so you don't have to. One popular fund that does this is the FT Cboe Vest S&P 500® Dividend Aristocrats Target Income ETF ( KNG )....

For further details see: