ETF Evaluator:
First Trust Small Cp BuyWrt Inc ETF ()
Follow This ETF
(as of Nov 13)
Best Performing in Derivative Income - Diversified Over the Last Year
| 24.9% | Federated Hermes Enhanced Income ETF (PAYR) |
| 21.1% | Amplify COWS Covered Call ETF (HCOW) |
| 20.5% | Parametric Equity Premium Income ETF (PAPI) |
| 20.2% | First Trust Small Cp BuyWrt Inc ETF (FTKI) |
| 19.9% | Cullen Enhanced Equity Income ETF (DIVP) |
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ETF Details
First Trust Small Cp BuyWrt Inc ETF Overview
First Trust Small Cp BuyWrt Inc ETF (FTKI) is an actively managed Nontraditional Equity Derivative Income - Diversified exchange-traded fund (ETF). First Trust launched the ETF in 2025.
The investment seeks to provide current income; the fund's secondary investment objective is to provide capital appreciation.
Under normal market conditions, the fund will pursue its investment objectives by investing primarily in small cap equity securities listed on U.S. exchanges and by utilizing a buy-write “option strategy” consisting of writing (selling) U.S. exchange-traded call options on the Russell 2000® Index or small cap equity exchange-traded funds. The fund is non-diversified.
About First Trust Small Cp BuyWrt Inc ETF (FTKI)
There are 2 members of the management team with an average tenure of 1.68 years: John Gambla (2025) and Rob Guttschow (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.
First Trust Small Cp BuyWrt Inc ETF has 205 securities in its portfolio. The top 10 holdings constitute 19.1% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
First Trust Small Cp BuyWrt Inc ETF is part of the Equity global asset class and is within the Nontraditional Equity ETF group. First Trust Small Cp BuyWrt Inc ETF has 7.3% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 86.1% There is 7.3% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). First Trust Small Cp BuyWrt Inc ETF has 6.6% of the portfolio in cash.
Assets Under Management
The fund has $25 million in total assets, which is below the $1 billion average for the Derivative Income - Diversified category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
FTKI Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The First Trust Small Cp BuyWrt Inc ETF expense ratio is high compared to funds in the Derivative Income - Diversified category. First Trust Small Cp BuyWrt Inc ETF has an expense ratio of 0.86%, which is 18% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. First Trust Small Cp BuyWrt Inc ETF has a portfolio turnover rate of 114%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 65% for the Derivative Income - Diversified category.
Recently, in the month of October 2026, First Trust Small Cp BuyWrt Inc ETF returned 3.4%, which earned it a grade of A, as the Derivative Income - Diversified category had an average return of -2.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
First Trust Small Cp BuyWrt Inc ETF has a trailing yield of 9.10%, which is above the 6.26% category average.
The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
First Trust Small Cp BuyWrt Inc ETF Grades
Year to date, the ETF has returned 14.4%, 5.5 percentage points better than the category, which translates into a grade of A. The fund has returned 20.2% over the past year (grade of A).
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FTKI Trailing NAV Total Returns Data as of 10/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| FTKI Return (NAV) | 3.4% | 1.3% | 20.2% | na | na | na |
| FTKI Return (Price) | 2.9% | 1.1% | 20.4% | na | na | na |
| NAV +/- Price Return | 0.489% | 0.202% | -0.191% | na | na | na |
| Derivative Income - Diversified Avg | -2.0% | 0.9% | 10.1% | 16.5% | 8.1% | 8.1% |
| FTKI Grade (NAV) | A | C | A | na | na | na |
| +/- Category (NAV) | 5.3% | 0.4% | 10.1% | na | na | na |
| FTKI Tax-Cost Ratio | na | na | 3.6% | na | na | na |
FTKI Annual NAV Total ReturnsData as of 10/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| FTKI Return (NAV) | 14.4% | na | na | na | na | na | na | na | na | na | na |
| FTKI Return (Price) | 12.5% | na | na | na | na | na | na | na | na | na | na |
| NAV +/- Price Ret | -0.134% | na | na | na | na | na | na | na | na | na | na |
| Derivative Income - Diversified Avg | 8.9% | 13.8% | 15.9% | 16.3% | -11.8% | 19.1% | 3.7% | 19.2% | -5.9% | 14.0% | 7.1% |
| FTKI Grade (NAV) | A | na | na | na | na | na | na | na | na | na | na |
| +/- Category | 5.5% | na | na | na | na | na | na | na | na | na | na |
| Risk Measures | |
| Beta: | na |
| R-Squared: | na |
| Standard Deviation: | na |
| Category Risk Index: | na |
| Category Risk Rating: | |
| Total Risk Index: | na |
| Total Risk Rating: | |
| Portfolio Characteristics | |
| Yield: | 9.1% |
| Total Assets: | $ 25 Mil |
| Share Class Assets: | $ 25 Mil |
| Turnover: | 114.0% |
| Expense Ratio: | 0.86% |
| Index Fund: | No |
| Index Tracked: | N/A |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | Annually |
| Income Distribution Frequency: | Monthly |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 1.7 years | |||
| Average Tenure: 1.7 years | |||
| Managers (Year): Gambla John (2025), Guttschow Rob (2025) | |||
Portfolio Composition (as of 10/29/26)
| # of Holdings: | 205 |
| % in Top 10 Holdings: | 19.1% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 7.3% |
Portfolio Allocation |
|
| Domestic Stock: | 86.1% |
| Foreign Stock: | 7.3% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 6.6% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | First Trust |
| Phone Number: | 800-621-1675 |
| Website: | http://www.ftportfolios.com |
| Inception Date: | February 25, 2025 |
Expenses and Fees
| Expense Ratio (%): | 0.86% (Rating: High) |
| Category Average Expense Ratio (%): | 0.73% |
