Symbols

KNG

FT Vest S&P 500 Dividend Aristocrats Target Income ETF·CBOE

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Key Stats

Assets Under Management

3.40BUSD

Fund Flows (1Y)

1.90MUSD

Dividend Yield

8.43%

Discount/Premium to NAV

0.02%

Shares Outstanding

68.83M

Expense Ratio

0.75%

About FT Vest S&P 500 Dividend Aristocrats Target Income ETF

Issuer

First Trust Advisors L.P.

Brand

FT Vest

Home Page

https://www.ftportfolios.com/Retail/Etf/EtfSummary.aspx?Ticker=KNG

Inception Date

Mar 26, 2018

Structure

Open-Ended Fund

Index Tracked

Cboe S&P 500 Dividend Aristocrats Target Income Index Monthly Series

Management Style

Passive

Dividend Treatment

Distributes

Distribution Tax Treatment

Ordinary income

Income Tax Type

Capital Gains

Max ST Capital Gains Rate

39.60%

Max LT Capital Gains Rate

20.00%

Primary Advisor

First Trust Advisors LP

Distributor

First Trust Portfolios LP

KNG employs an adjusted buy-write strategy on a dividend-focused portfolio. The equal-weighted portfolio is made up of companies from the S&P 500 that have increased dividends for each of the last 25 years. The fund writes covered call options on these stocks, which generates additional income but limits the upside of the portfolio. Rather than writing calls on the entire notional value of the fund's stock holdings, KNG aims for combined income from dividends and call options that is 3% higher than the yield on the S&P 500. The covered call overlay is limited to 20% of the notional value. The index is reconstituted annually and rebalanced quarterly. Prior to being acquired by First Trust on March 1, 2021, the fund was managed by Cboe Vest Financial.