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FTKIFirst Trust Small Cap BuyWrite Income ETF

Get income1y track recordRanked #1,438 of 1,622 in this goal

Seeks to provide current income and capital appreciation.

By First Trust · Launched 2025

Annual Cost

0.86%

#4,425 of 5,562 · expensive

Fund Size

$23M

#4,244 of 5,562 · small

Dividend YieldGoal

11.57%

Track Record

1 year

#4,198 of 5,562 · young

Performance

Total-return NAV · USD
Growth of $10,000
$12,041+20.4%

Total-return NAV, USD. Net of fund fees, before tax.

Classification

How Beacon categorizes this fund

Asset class

Alternative

Strategy

Option income

What it actually holds

By weight

Concentration

Top 10 holdings = 15.3% of fundwell diversified

Lumentum Holdings Inc
3.1%
Argan Inc
1.7%
NU Holdings Ltd/Cayman Islands
1.7%
Western Union Co/The
1.3%
TSMC
1.3%
CareTrust REIT Inc
1.3%
ASML Holding NV
1.2%
Monarch Casino & Resort Inc
1.2%
Granite Construction Inc
1.2%
Insmed Inc
1.2%

Asset allocation

Stocks
98.9%
Cash
1.1%

Risk profile

Last 12 months · Sharpe & Sortino need 3+ years
Volatility (1Y)
9.9%Low

Year-on-year price swings

Max drawdown
-15.2%Moderate

Worst peak-to-trough loss

Sharpe (3Y)
Unavailable

Needs 3+ years of history

Sortino (3Y)
Not yet

Needs 3+ years of history

Where to buy

Listing

Exchange
NYSE Arca

Full fund details

Objective
Seeks to provide current income and capital appreciation.
Strategy
Invests primarily in small cap U.S. equity securities and employs a buy-write option strategy by writing call options on the Russell 2000 Index or small cap ETFs. The Fund aims to generate income from options premiums while holding underlying equities to hedge risks.
Inception date
February 25, 2025
Fund family
First Trust

Our take

Structural notes on how this fund behaves. Read our guide on the 6 warning signs.

Covered call
Warning

Covered call ETF — yield ≠ total return

The high distribution yield is not free income — it comes from selling upside via call options. Research finds these strategies systematically underperform their underlying index over full cycles, typically by 100–300 basis points per year depending on the option-overlay design. The monthly distributions make the shortfall hard to see in return summaries.

Source: Israelov & Ndong, 'A Devil's Bargain: When Generating Income Undermines Investment Returns' (NDVR, 2023)

Why we flagged this: strategy=option_income + option_income_strategy

Educational analysis of structural product characteristics. Not investment advice. Always read the fund prospectus and consult a qualified advisor before investing. More

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Data updated on 2026-06-19