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About FIRST TRUST VEST SMID RISING DIVIDEND ACHIEVERS TARGET INCOME ETF
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Inception date
Nov 1, 2024
Structure
Canadian Mutual Fund Trust (ON)
Primary advisor
FT Portfolios Canada Co.
The fund seeks to invest all its assets in the US-listed ETF SDVD. The underlying ETF aims for an 8% annual distribution, before fees and expenses, over the annual dividend yield of the Russell 2000 Index. However, the delivery of the target income is not assured. Distributions stem from dividends from small- and mid-cap companies within the Nasdaq US Small-Mid Cap Rising Dividend Achievers Index and premiums from selling naked index call options. These options are European style, written at-the-money, and will have expirations of less than 30 days. Each week, SDVD attempts to bridge the difference between the dividend income of its equity portfolio and its target distribution by selling at-the-money, naked call options on the Russell 2000 Index or related ETFs. The income from stock dividends and option premiums is expected to be distributed monthly. Investors should be aware that selling naked index call options carries a high level of risk.
Classification
What's in the fund
Exposure type
Finance
Producer Manufacturing
Stock breakdown by region
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