We are delighted to introduce our inaugural Target Income ETF in Europe, the First Trust Vest S&P 500® Dividend Aristocrats Target Income UCITS ETF (“KNG”), which will be available on the London Stock Exchange from Wednesday 19 November.

KNG targets an annualised income from dividends and option premiums that is approximately 8% higher than the S&P 500 Index’s annual dividend yield.

A novel approach to covered call overwriting
Equity income investors have traditionally faced a difficult trade-off: choosing between high dividend payers, which have historically offered lower total returns and higher volatility, and dividend growers, which typically offer stronger returns but lower yields.

KNG is engineered to offer a potential solution to this dilemma. The fund seeks to deliver the high-income characteristics of dividend payers, while capturing the potential for stronger total returns and lower volatility associated with dividend growers. At the heart of this strategy is an innovative approach to covered call overwriting.

Join our webinar with Paras Bakrania, Senior Product Specialist at First Trust, to learn more about the key features of KNG and why we believe now is a compelling time for income-oriented investors.