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Critical Facts You Need to Know About Preferred Stocks
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Sector Rating
Recommendation *
Avoid
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Quality
Rating Breakdown
Avg.
Relative Strength
The relative strength of a dividend stock indicates whether the stock is uptrending or not. The major determining factor in this rating is whether the stock is trading close to its 52-week-high.
Overall Yield Attractiveness
If a stock’s yield is above or near the market average then it will be rated higher within this parameter. High dividend yields (usually over 10%) should be considered extremely risky, while low dividend yields (1% or less) are simply not very beneficial to long-term investors.
Dividend Reliability
A stock’s dividend reliability is determined by a healthy payout ratio that is higher than other stocks. A company that pays out close to half its earnings as dividends and retains the other half of earnings has ample room to grow its business and pay out more dividends in the future.
Dividend Uptrend
A stock’s Dividend Uptrend rating is dependent on the company’s price-to-earnings (P/E) ratio to evaluate whether or not a stock’s dividend is likely to trend upward. If a stock is valued near, or slightly below the market average, research has shown that the market expects the stock’s dividend to increase.
Earnings Growth
A stock’s Earnings Growth rating evaluates a company’s expected EPS for the current financial year and compares it to next financial year’s expected EPS. Stocks with single-digit growth estimates will have a higher rating than others, as our research has shown that well-established dividend-paying companies have modest earnings growth estimates.
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FT Cboe Vest S&P 500® Dividend Aristocrats Target Income ETF
ETF
KNG
Payout Change
Pending
Price as of:
$50.04
+0.06
+0.12%
primary theme
U.S. Large-Cap Value Equity
KNG (ETF)
FT Cboe Vest S&P 500® Dividend Aristocrats Target Income ETF
Payout Change
Pending
Price as of:
$50.04
+0.06
+0.12%
primary theme
U.S. Large-Cap Value Equity
KNG (ETF)
FT Cboe Vest S&P 500® Dividend Aristocrats Target Income ETF
Payout Change
Pending
Price as of:
$50.04
+0.06
+0.12%
primary theme
U.S. Large-Cap Value Equity
Name
Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
$50.04
$513 M
4.07%
$2.04
0.75%
Vitals
YTD Return
-1.0%
1 yr return
-2.6%
3 Yr Avg Return
11.5%
5 Yr Avg Return
8.7%
Net Assets
$513 M
Holdings in Top 10
17.7%
52 WEEK LOW AND HIGH
$50.0
$45.60
$54.79
Expenses
OPERATING FEES
Expense Ratio 0.75%
SALES FEES
Front Load N/A
Deferred Load N/A
TRADING FEES
Turnover N/A
Redemption Fee N/A
Min Investment
Standard (Taxable)
N/A
IRA
N/A
Fund Classification
Fund Type
Exchange Traded Fund
Name
Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
$50.04
$513 M
4.07%
$2.04
0.75%
KNG - Profile
Distributions
- YTD Total Return -1.0%
- 3 Yr Annualized Total Return 11.5%
- 5 Yr Annualized Total Return 8.7%
- Capital Gain Distribution Frequency Annually
- Net Income Ratio 1.65%
- Dividend Yield 4.1%
- Dividend Distribution Frequency Quarterly
Fund Details
-
Legal NameFT Cboe Vest S&P 500® Dividend Aristocrats Target Income ETF
-
Fund Family NameFirst Trust
-
Inception DateMar 26, 2018
-
Shares Outstanding9675000
-
Share ClassN/A
-
CurrencyUSD
-
Domiciled CountryUnited States
-
ManagerKaran Sood
Fund Description
The Fund will normally invest at least 80% of its total assets (including investment borrowings) in the common stocks and call options that comprise the Index. The Fund, using an indexing investment approach, attempts to replicate, before fees and expenses, the performance of the Index. The Index is owned, developed, maintained and calculated by S&P Opco, LLC (the “Index Provider”). Cboe Vest Financial LLC is the Fund’s investment sub-advisor (“Cboe Vest” or the “Sub-Advisor”).The Index is a rules-based buy-write index designed with the primary goal of generating an annualized level of income from stock dividends and option premiums that is approximately 3% over the annual dividend yield of the S&P 500® Index and a secondary goal of generating capital appreciation based on the price returns of the equity securities contained in the Index. The Index's objective to deliver a target level of income could result in the Fund selling securities to meet the target, which could make the Fund less tax-efficient than other ETFs. The Index is composed of two parts: (1) an equal-weighted portfolio of the stocks contained in the S&P 500 Dividend Aristocrats Index (the “Aristocrat Stocks”) that have options that trade on a national securities exchange and (2) a rolling series of short (written) call options on each of the Aristocrat Stocks (the “Covered Calls”). The S&P 500 Dividend Aristocrats Index includes companies in the S&P 500® Index that have increased dividend payments each year for at least 25 consecutive years and have a float adjusted market-cap of at least $3 billion as of the rebalancing reference date and have an average daily value traded of at least $5 million.A written (sold) call option gives the seller the obligation to sell shares of the underlying asset at a specified price (“strike price”) at a specified date (“expiration date”). The writer (seller) of the call option receives an amount (premium) for writing (selling) the option. In the event the underlying asset appreciates above the strike price as of the expiration date, the writer (seller) of the call option will have to pay the difference between the value of the underlying asset and the strike price (which loss is offset by the premium initially received), and in the event the underlying asset declines in value, the call option may end up worthless and the writer (seller) of the call option retains the premium.In exchange for additional income in the form of a premium, the Fund will sell a call option on each of the stocks in the Index. If the value of a stock on the expiration date of the option is below a certain value, the option will not be exercised and will expire. If the value of a stock on the expiration date is above the strike price, then the option finished “in the money.” Then, the Fund either sells the stock at the strike price or pays the buyer the difference between the strike price and the current market price of the stock.The Covered Calls are written (sold) by the Index on the third Friday of each month with an expiration typically on the third Friday of the following month and a strike price as close as possible to the closing price of the underlying Aristocrat Stock at the time the Covered Call is written. The Index employs a “partial covered call strategy,” meaning that Covered Calls will be written on a notional value of no more than 20% of the value of each underlying Aristocrat Stock, such that the short position in each call option is “covered” by a portion of the corresponding Aristocrat Stock held by the Index. For example, if at the time Covered Calls are written by the Index the Index reflected a $50,000 position in a particular Aristocrat Stock, the notional value of such Covered Calls (i.e., the strike price multiplied by the number of shares subject to the Covered Calls) would not exceed $10,000. The Index is a hypothetical portfolio of options and equity securities. As such, the Index cannot actually buy or sell an option or equity security, but the Index reflects the value of such transactions as if the Index could actually engage in them.The exact amount of Covered Calls written is based on a calculation designed to result in the Index generating income from (i) dividends from the Aristocrat Stocks and (ii) premiums from writing Covered Calls that is 3% higher annually than the total dividend yield of the S&P 500 Index constituents.While the Fund generally intends to replicate the Index, the Fund may invest up to 20% of its total assets (exclusive of any collateral held from securities lending) in securities or other investments not included in the Index, but which the Fund’s investment adviser believes will help the Fund track the Index. For example, the Fund may invest in securities that are not components of the Index to reflect various corporate actions and other changes to the Index (such as reconstitutions, additions, and deletions) or in options with slightly different strike prices or expiration dates than the options components of the Index to maximize the Fund’s liquidity by utilizing a broader range of options, while maintaining the overall risk, return, and other characteristics of the Index.The equity portion of the Index is rebalanced quarterly and reconstituted annually and the Fund will make corresponding changes to its portfolio shortly after the Index changes are made public. The Fund’s strategy may involve frequently buying and selling portfolio securities. The Fund will be concentrated in an industry or a group of industries to the extent that the Index is so concentrated. As of December 31, 2021, the equity component of the Index was composed of 64 securities and the Index had significant exposure to consumer staples companies and industrials companies. The Fund invests in the securities of large capitalization companies.
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KNG - Performance
Return Ranking - Trailing
| Period | KNG Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| YTD | -1.0% | -21.2% | 27.4% | 79.64% |
| 1 Yr | -2.6% | -61.1% | 51.5% | 9.92% |
| 3 Yr | 11.5%* | -22.7% | 64.3% | 15.69% |
| 5 Yr | 8.7%* | -17.2% | 29.8% | N/A |
| 10 Yr | N/A* | -16.4% | 14.3% | N/A |
* Annualized
Return Ranking - Calendar
| Period | KNG Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| 2022 | -7.0% | -65.1% | 38.0% | 23.81% |
| 2021 | 11.7% | -25.3% | 29.0% | 14.13% |
| 2020 | 2.3% | -8.4% | 56.7% | 11.12% |
| 2019 | 6.1% | -24.3% | 10.4% | 8.32% |
| 2018 | N/A | -9.4% | 21.9% | N/A |
Total Return Ranking - Trailing
| Period | KNG Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| YTD | -1.0% | -21.2% | 27.4% | 79.24% |
| 1 Yr | -2.6% | -61.1% | 61.5% | 11.84% |
| 3 Yr | 11.5%* | -22.7% | 64.3% | 16.04% |
| 5 Yr | 8.7%* | -16.2% | 32.9% | N/A |
| 10 Yr | N/A* | -3.7% | 21.1% | N/A |
* Annualized
Total Return Ranking - Calendar
| Period | KNG Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| 2022 | -7.0% | -65.1% | 38.0% | 23.81% |
| 2021 | 11.7% | -25.3% | 29.0% | 14.13% |
| 2020 | 2.3% | -8.4% | 56.7% | 11.12% |
| 2019 | 6.1% | -24.3% | 10.4% | 8.32% |
| 2018 | N/A | -8.9% | 21.9% | N/A |
KNG - Holdings
Concentration Analysis
| KNG | Category Low | Category High | KNG % Rank | |
|---|---|---|---|---|
| Net Assets | 513 M | 390 K | 151 B | 59.20% |
| Number of Holdings | 126 | 2 | 1727 | 23.42% |
| Net Assets in Top 10 | 90.5 M | 2.1 K | 32.3 B | 69.30% |
| Weighting of Top 10 | 17.65% | 5.0% | 99.2% | 95.08% |
Top 10 Holdings
- Nucor Corp 2.61%
- Albemarle Corp 2.09%
- Archer-Daniels Midland Co 2.09%
- Walgreens Boots Alliance Inc 1.96%
- Carrier Global Corp Ordinary Shares 1.93%
- Target Corp 1.89%
- A.O. Smith Corp 1.87%
- AbbVie Inc 1.83%
- Cardinal Health Inc 1.82%
- Amcor PLC Ordinary Shares 1.82%
Asset Allocation
| Weighting | Return Low | Return High | KNG % Rank | |
|---|---|---|---|---|
| Stocks | 99.40% | 28.02% | 125.26% | 30.70% |
| Cash | 0.60% | -88.20% | 71.98% | 66.90% |
| Preferred Stocks | 0.00% | 0.00% | 19.30% | 31.40% |
| Other | 0.00% | -2.02% | 26.80% | 26.22% |
| Convertible Bonds | 0.00% | 0.00% | 3.66% | 27.61% |
| Bonds | 0.00% | 0.00% | 80.18% | 28.85% |
Stock Sector Breakdown
| Weighting | Return Low | Return High | KNG % Rank | |
|---|---|---|---|---|
| Industrials | 21.94% | 0.00% | 42.76% | 1.09% |
| Consumer Defense | 20.77% | 0.00% | 34.10% | 1.94% |
| Healthcare | 12.30% | 0.00% | 30.77% | 87.58% |
| Basic Materials | 11.57% | 0.00% | 21.69% | 2.33% |
| Financial Services | 10.80% | 0.00% | 58.05% | 95.57% |
| Consumer Cyclical | 8.20% | 0.00% | 22.74% | 22.75% |
| Utilities | 4.90% | 0.00% | 27.04% | 45.19% |
| Real Estate | 4.33% | 0.00% | 90.54% | 29.89% |
| Energy | 3.57% | 0.00% | 54.00% | 85.95% |
| Technology | 1.62% | 0.00% | 54.02% | 97.52% |
| Communication Services | 0.00% | 0.00% | 26.58% | 97.83% |
Stock Geographic Breakdown
| Weighting | Return Low | Return High | KNG % Rank | |
|---|---|---|---|---|
| US | 94.24% | 24.51% | 121.23% | 46.56% |
| Non US | 5.16% | 0.00% | 45.02% | 43.08% |
KNG - Expenses
Operational Fees
| KNG Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Expense Ratio | 0.75% | 0.01% | 4.02% | 56.05% |
| Management Fee | 0.75% | 0.00% | 1.50% | 84.94% |
| 12b-1 Fee | 0.00% | 0.00% | 1.00% | 6.15% |
| Administrative Fee | N/A | 0.01% | 0.50% | N/A |
Sales Fees
| KNG Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Front Load | N/A | 0.00% | 5.75% | N/A |
| Deferred Load | N/A | 0.95% | 5.00% | N/A |
Trading Fees
| KNG Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Max Redemption Fee | N/A | 1.00% | 2.00% | N/A |
Related Fees
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
| KNG Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Turnover | N/A | 0.00% | 488.00% | 81.38% |
KNG - Distributions
Dividend Yield Analysis
| KNG | Category Low | Category High | KNG % Rank | |
|---|---|---|---|---|
| Dividend Yield | 4.07% | 0.00% | 42.27% | 2.15% |
Dividend Distribution Analysis
| KNG | Category Low | Category High | Category Mod | |
|---|---|---|---|---|
| Dividend Distribution Frequency | Quarterly | Annually | Quarterly | Annually |
Net Income Ratio Analysis
| KNG | Category Low | Category High | KNG % Rank | |
|---|---|---|---|---|
| Net Income Ratio | 1.65% | -1.51% | 4.28% | 33.83% |
Capital Gain Distribution Analysis
| KNG | Category Low | Category High | Capital Mode | |
|---|---|---|---|---|
| Capital Gain Distribution Frequency | Annually | Annually | Quarterly | Annually |
Distributions History
| Date | Amount | Type |
|---|---|---|
| Mar 31, 2023 | $0.510 | OrdinaryDividend |
| Dec 30, 2022 | $0.529 | OrdinaryDividend |
| Sep 30, 2022 | $0.502 | OrdinaryDividend |
| Jun 30, 2022 | $0.500 | OrdinaryDividend |
| Mar 31, 2022 | $0.516 | OrdinaryDividend |
| Dec 31, 2021 | $0.506 | OrdinaryDividend |
| Jun 26, 2020 | $0.427 | OrdinaryDividend |
| Mar 27, 2020 | $0.394 | OrdinaryDividend |
| Dec 31, 2019 | $0.490 | OrdinaryDividend |
| Sep 27, 2019 | $0.386 | OrdinaryDividend |
| Jun 21, 2019 | $0.466 | OrdinaryDividend |
| Mar 22, 2019 | $0.462 | OrdinaryDividend |
| Jun 29, 2018 | $0.405 | OrdinaryDividend |
KNG - Fund Manager Analysis
Managers
Karan Sood
Start Date
Tenure
Tenure Rank
Mar 26, 2018
4.18
4.2%
CEO & Managing Director, Head of Product Development
Howard Rubin
Start Date
Tenure
Tenure Rank
Mar 26, 2018
4.18
4.2%
Mr. Rubin has over twenty years of experience as a portfolio manager. Mr. Rubin joined Cboe Vest in 2017. Prior to joining Cboe Vest, Mr. Rubin served as Director of Portfolio Management at ProShares Advisors LLC from December 2007 to September 2013. Mr. Rubin also served as Senior Portfolio Manager of ProFund Advisors LLC from November 2004 to December 2007 and Portfolio Manager of ProFund Advisors LLC from April 2000 through November 2004. Mr. Rubin holds the Chartered Financial Analyst (CFA) designation. Mr. Rubin received a master’s degree in Finance from George Washington University. He also holds a bachelor’s degree in economics from Wharton School of Finance, University of Pennsylvania.
Tenure Analysis
| Category Low | Category High | Category Average | Category Mode |
|---|---|---|---|
| 0.09 | 86.59 | 7.9 | 16.42 |
