(RDVI) FT Cboe Vest Rising - Ratings and Ratios

The FT Cboe Vest Rising Dividend Achievers Target Income ETF, listed on BATS under the ticker RDVI, is designed to provide investors with a unique income-generating strategy. By investing a minimum of 80% of its net assets in dividend-paying securities or investments that offer exposure to such securities, the fund aims to capitalize on the potential for regular income streams. This approach allows the fund to tap into the dividend-paying equity market, which can be an attractive option for investors seeking predictable returns.

In pursuit of its investment objectives, the fund's adviser employs a distinct strategy focused on generating distributions from two primary sources: stock dividends and option premiums. The goal is to achieve an annual distribution rate of approximately 8.0% above the current annual dividend yield of the S&P 500 Index. This targeted approach is intended to provide investors with a relatively stable income stream, which can be particularly appealing in low-yield environments. The fund's investment strategy is built around the concept of harnessing the power of dividend-paying stocks and options to create a consistent income-generating machine.

As a non-diversified fund, the FT Cboe Vest Rising Dividend Achievers Target Income ETF may concentrate its investments in a limited number of securities or industries, which can increase its vulnerability to market fluctuations. However, this focused approach also allows the fund to take a more targeted stance in pursuit of its investment objectives. With its unique blend of dividend-paying securities and options, the fund offers investors a distinctive income-generating solution that can be used to enhance the yield of their overall investment portfolios. The fund is classified as a derivative income ETF, which reflects its use of options and other derivative instruments to achieve its investment goals.