RDVI Profile
The FT Cboe Vest Rising Dividend Achievers Target Income ETF focuses on generating high income through investments in dividend-paying securities and related financial instruments. Under normal market conditions, the fund commits at least 80% of its net assets, including any borrowed funds, to these dividend-paying assets or investments that provide similar exposure. The fund's strategy is designed to capture consistent income streams from stocks and options while pursuing a target annual income distribution rate.
The fund's adviser aims to achieve income distributions that exceed the current annual dividend yield of the S&P 500 Index by approximately 8.0%. This objective is pursued through a combination of high-yield dividend stocks and strategic option premiums. By focusing on dividend-paying securities, the fund targets companies with a track record of increasing their dividend payouts, thereby potentially providing investors with a steady and rising income stream.
The ETF employs a rigorous selection process to identify and invest in high-quality dividend achievers—companies that have consistently raised their dividends over time. This approach is complemented by utilizing options strategies to enhance income. The goal is to achieve a total income yield that surpasses the broader market's dividend yield, providing investors with a premium income experience. The fund's income strategy also aims to mitigate volatility and provide a stable income flow despite market fluctuations.
As a non-diversified fund, the FT Cboe Vest Rising Dividend Achievers Target Income ETF concentrates its investments according to its specific income and dividend criteria. This focused approach allows the fund to target high-income opportunities and dividend growth potential while maintaining a clear objective of generating superior income relative to the S&P 500 Index. Investors benefit from a tailored investment strategy designed to maximize income through dividends and option premiums, aligning with the fund's commitment to delivering high yield and steady performance.
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