ETF Evaluator: FT Cboe Vest S&P 500® Dv Ast Tgt Inc ETF (KNG) Follow This ETF

FT Cboe Vest S&P 500® Dv Ast Tgt Inc ETF Overview

FT Cboe Vest S&P 500® Dv Ast Tgt Inc ETF (KNG) is a passively managed Nontraditional Equity Derivative Income exchange-traded fund (ETF). First Trust launched the ETF in 2018.

The investment seeks investment results that correspond generally to the price and yield of an equity index called the Cboe S&P 500® Dividend Aristocrats Target Income Index Monthly Series. The fund will normally invest at least 80% of its total assets in the securities that comprise the index. The index is designed to track the performance of a hypothetical BuyWrite strategy on constituents of the S&P 500 Dividend Aristocrats Index, which targets companies that are currently members of the S&P 500 ® Index.

About FT Cboe Vest S&P 500® Dv Ast Tgt Inc ETF (KNG)

There are 2 members of the management team with an average tenure of 4.87 years: Karan Sood (2018) and Trevor Lack (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and CBOE S&P500 Div Arstcrts Tgt Inc TR USD index with a weighting of 100%. FT Cboe Vest S&P 500® Dv Ast Tgt Inc ETF has 138 securities in its portfolio. The top 10 holdings constitute 17.1% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

FT Cboe Vest S&P 500® Dv Ast Tgt Inc ETF is part of the Equity global asset class and is within the Nontraditional Equity ETF group. FT Cboe Vest S&P 500® Dv Ast Tgt Inc ETF has 2.9% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 96.5% There is 2.9% 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). FT Cboe Vest S&P 500® Dv Ast Tgt Inc ETF has 0.5% of the portfolio in cash.

Assets Under Management

The fund has $3 billion in total assets, which is above the $727 million average for the Derivative Income 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.

KNG 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 FT Cboe Vest S&P 500® Dv Ast Tgt Inc ETF expense ratio is above average compared to funds in the Derivative Income category. FT Cboe Vest S&P 500® Dv Ast Tgt Inc ETF has an expense ratio of 0.74%, which is 11% lower than its category average, making the fund expense ratio grade a B. 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. FT Cboe Vest S&P 500® Dv Ast Tgt Inc ETF has a portfolio turnover rate of 152%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 68% for the Derivative Income category.

Recently, in the month of June 2026, FT Cboe Vest S&P 500® Dv Ast Tgt Inc ETF returned 4.8%, which earned it a grade of A, as the Derivative Income category had an average return of -2.1%. 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.

FT Cboe Vest S&P 500® Dv Ast Tgt Inc ETF has a trailing yield of 5.40%, which is below the 16.43% 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.

FT Cboe Vest S&P 500® Dv Ast Tgt Inc ETF Grades

Year to date, the ETF has returned 7.1%, 3.1 percentage points better than the category, which translates into a grade of C. The fund has returned 11.8% over the past year (grade of D), 7.2% over the past three years (grade of F) and 5.7% per year over the past five years (grade of F).

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