FTKIFirst Trust Small Cap BuyWrite Income ETF
Seeks to provide current income and capital appreciation.
By First Trust · Launched 2025
0.86%
#4,425 of 5,562 · expensive
$23M
#4,244 of 5,562 · small
11.57%
1 year
#4,198 of 5,562 · young
Performance
Total-return NAV · USDTotal-return NAV, USD. Net of fund fees, before tax.
Classification
How Beacon categorizes this fundWhat it actually holds
By weightConcentration
Top 10 holdings = 15.3% of fund✓ well diversified
Asset allocation
Risk profile
Last 12 months · Sharpe & Sortino need 3+ yearsYear-on-year price swings
Worst peak-to-trough loss
Needs 3+ years of history
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
Similar ETFs
Closest matches by profileOur take
Structural notes on how this fund behaves. Read our guide on the 6 warning signs.
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