Emerson Electric

Nucor

Fastenal

W.W. Grainger

Dover

Genuine Parts

T. Rowe Price Group

Illinois Tool Works

Cincinnati Financial

Sherwin-Williams

CBOE Vest S&P 500 Dividend Aristocrats Target Income ETF

KNG tracks an equal-weighted index of US large-cap companies that have increased dividends for at least 25 years, with a partial overlay of covered call options.

Volatility has increased ahead of the U.S. election, with the VIX rising and a slew of economic data and earnings reports expected. KNG ETF offers high option-selling premiums and a strong yield, benefiting from the current high-volatility environment and potential year-end strength. Despite underperforming the S&P 500, KNG has grown significantly in assets and offers a diversified portfolio with a focus on dividend aristocrats.

KNG: Why Higher Implied Volatility Might Be Bullish (Rating Upgrade)

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These ETFs yield 7% or more and outperformed the S&P 500 over the past one month.

4 ETFs Yielding 7% or More & Outperforming S&P 500

FT Cboe Vest S&P 500 Dividend Aristocrats Target Income ETF offers instant diversification and a high dividend yield of 8.8% through a covered call strategy. KNG underperforms the S&P 500 due to its option writing strategy, limiting price appreciation but providing higher current income for income-focused investors. KNG's dividend has grown rapidly at a CAGR of 33.74% over the last five years, making it attractive for income investors despite potential tax implications.

KNG: Dividend Aristocrat Covered Call ETF

FT Cboe Vest S&P 500® Dividend Aristocrats Target Income ETF holds S&P 500 dividend aristocrats in equal-weight and sells covered calls options. KNG ETF valuation looks slightly better than the S&P 500, whereas growth and quality metrics are average. Compared to the S&P 500 Dividend Aristocrats Index, KNG has a higher yield, but a lower total return since the fund's inception.

KNG: Buy-Write ETF Lagging Peers For 3 Years

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.

KNG: A King Among Buy-Write Strategies

Covered call ETFs have attracted over $25 billion in net flows this year, surpassing the total for 2022. The FT Cboe Vest S&P 500 Dividend Aristocrats Target Income ETF is a veteran ETF in the covered call space. KNG has a hold rating due to its construct, weak relative returns, and significant sector and style wager compared to the broad stock market.

KNG: Big Yield, Unimpressive YTD Returns

First Trust Cboe Vest S&P 500 Dividend Aristocrats Target Income ETF implements a buy-write strategy with dividend aristocrats. It is well-diversified across sectors and holdings. KNG outperforms other S&P 500 buy-write ETFs since 2018, but lags behind JEPI and FTHI in the last 3 years.

KNG: Enhancing Dividend Aristocrat Yields With Covered Calls

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KNG employs a buy/write strategy quite successfully, considering the small opportunity cost in relation to market total returns and the decent dividend yield over the years.

KNG: Not The Buy/Write ETF King

KNG invests in dividend aristocrats and sells covered calls on them. About 47% of asset value is in two sectors: consumer staples and industrials.

KNG: Boosting Dividends At The Expense Of Return

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Once upon a time, dividends played a starring role in equity markets—until 14 years of easy money whetted investors' appetite for risk and created a massive tailwind for unprofitable, long-duration growth stocks. Valuations appear to be attractive: Stocks yielding north of 2.5% are trading near their largest discount to the equity market in recent memory.

Good Fishing In The Dividend Stream

The S&P 500 Index has rebounded sharply off its previous low in October, closing up 14% on Feb. 17 since October's trough. The market could continue to rally, of course.

Oversold-Overbought Watch: S&P 500 Index - February 21, 2023

The KNG ETF holds a portfolio of dividend aristocrats and sells covered calls. Consumer staples and industrials are the top sectors, weighing over 40% together.

KNG: Showing Resilience In 2022

KNG is a hybrid income ETF holding dividend aristocrats and selling call options on them. Its heaviest sectors are consumer staples and industrials.

KNG: Covered Calls And Dividend Aristocrats

KNG uses a small covered call strategy on the S&P 500 dividend aristocrats to produce a higher yield.

KNG: Dividend Aristocrats With A 3-4% Yield

In searching for income, I researched the five largest S&P 500 covered call ETFs. The dividend yields of the five funds ranged from 1.09% to 9.85%.

Search For Income: S&P 500 Covered Call ETFs

Dividend investors looking for a high income with potentially slightly lower downside risk may want to consider KNG. This enhanced S&P 500 Dividend Aristocrats ETF writes a small number of call options to boost the yield to a target of 3% higher than the S&P 500.

KNG: The Dividend Aristocrats With A Yield Boost

KNG: Hybrid Income ETF Review

Cboe Global Markets

WHEATON, Ill.--(BUSINESS WIRE)--First Trust Advisors L.P. (“First Trust” or “FTA”) a leading exchange-traded fund (“ETF”) provider and asset manager, announced today that the reorganization of Cboe Vest S&P 500® Dividend Aristocrats Target Income ETF® (the “Target Fund”), an index based exchange-traded fund (“ETF”), managed by Cboe Vest Financial LLC, into FT Cboe Vest S&P 500® Dividend Aristocrats Target Income ETF® (the “Acquiring Fund” or “KNG”), an index based ETF managed by FTA, wa

First Trust Acquires Cboe Vest S&P 500® Dividend Aristocrats Target Income ETF® (KNG), Expanding its Lineup of Target Outcome Investments®

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Chances of a phase-one U.S. China trade deal is likely to be the main focus of investors before mid-December.

News for CBOE Vest S&P 500 Dividend Aristocrats Target Income ETF ETF (KNG)