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FTKI - ETF AI Analysis

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FTKI

First Trust Small Cap BuyWrite Income ETF (FTKI)

Rating:68Neutral
Price Target:
FTKI, the First Trust Small Cap BuyWrite Income ETF, has a solid overall rating driven mainly by holdings like AstraZeneca (AZN) and Jones Lang LaSalle (JLL), which benefit from strong financial performance, positive earnings calls, and strategic growth initiatives. Other positions such as MasTec (MTZ), Check Point (CHKP), and Southern Copper (SCCO) also support the fund through robust revenues and backlogs, though issues like high valuations, mixed or bearish technical signals, and political or cost-related risks in some holdings slightly weigh on the rating. The main risk factor is that several key holdings share concerns around valuation and short-term technical weakness, which could add volatility even though their long-term outlooks remain generally positive.
Positive Factors
Broad Sector Diversification
The fund spreads its investments across many different sectors, which can help reduce the impact if any one industry struggles.
Generally Strong Top Holdings
Most of the largest positions have shown solid gains this year, which has supported the ETF’s recent performance.
Positive Recent Performance Trend
The ETF has delivered steady gains over the past three months and year-to-date, suggesting its strategy has been working in the current market.
Negative Factors
High Expense Ratio
The fund charges relatively high fees, which can eat into returns over time compared with lower-cost ETFs.
Single-Country Concentration
With all of its exposure in U.S. stocks, the ETF offers little geographic diversification and is heavily tied to the U.S. market.
Some Weak Top Holdings
A few of the largest positions have posted weak results this year, which could drag on overall performance if the weakness continues.

FTKI vs. SPDR S&P 500 ETF (SPY)

FTKI Summary

The First Trust Small Cap BuyWrite Income ETF (FTKI) focuses on smaller U.S. companies and aims to provide both income and growth. It uses an options-based strategy on small-cap stocks rather than tracking a traditional index, with exposure across technology, financials, industrials, and more. Well-known holdings include ASML Holding and Western Union. Someone might consider FTKI if they want diversified access to smaller companies plus extra income from option premiums. A key risk is that small-cap stocks can be more volatile than large companies, so the ETF’s value can go up and down sharply with the market.
How much will it cost me?The First Trust Small Cap BuyWrite Income ETF (FTKI) has an expense ratio of 0.85%, which means you’ll pay $8.50 per year for every $1,000 invested. This is higher than average because the ETF uses an actively managed buy-write strategy to generate income, which typically involves more complex management compared to passively managed funds.
What would affect this ETF?FTKI's focus on U.S. small-cap companies and its buy-write strategy could benefit from a strong U.S. economy and rising demand for innovative small-cap stocks in sectors like technology and healthcare. However, challenges such as higher interest rates or economic slowdowns could negatively impact small-cap companies, which are often more sensitive to market volatility. Additionally, regulatory changes or sector-specific disruptions in industries like financials or consumer cyclical could influence the ETF's performance.

FTKI Top 10 Holdings

FTKI’s story is driven by a handful of small-cap standouts and a few names losing steam. Engineering and infrastructure plays like Argan and MasTec have been rising, giving the fund a helpful tailwind. On the flip side, tech and fintech names such as Check Point, Veeva Systems, and Futu have been lagging, acting like sandbags on performance. With meaningful exposure to industrials, technology, and financials, the ETF leans into economically sensitive small caps, mostly in the U.S., while sprinkling in a few global names for extra flavor.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Argan2.61%$580.22K$8.05B352.58%
73
Outperform
MasTec1.81%$400.70K$26.68B216.60%
74
Outperform
AstraZeneca1.68%$373.45K$311.06B44.19%
80
Outperform
Veeva Systems1.60%$354.33K$28.18B-17.61%
66
Neutral
Jones Lang Lasalle1.57%$349.47K$14.44B48.11%
79
Outperform
Check Point1.55%$343.91K$15.47B-28.72%
76
Outperform
Futu Holdings1.51%$334.98K$19.63B87.31%
70
Outperform
Southern Copper1.47%$326.25K$142.50B138.66%
73
Outperform
Aecom Technology1.46%$325.18K$10.77B-4.48%
71
Outperform
Credicorp1.41%$313.72K$26.84B98.62%
73
Outperform

FTKI Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
19.44
Positive
100DMA
18.91
Positive
200DMA
18.15
Positive
Market Momentum
MACD
0.02
Negative
RSI
57.39
Neutral
STOCH
87.30
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FTKI, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 19.33, equal to the 50-day MA of 19.44, and equal to the 200-day MA of 18.15, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 57.39 is Neutral, neither overbought nor oversold. The STOCH value of 87.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTKI.

FTKI Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$22.56M0.85%
68
Neutral
$80.09M0.75%
70
Neutral
$57.62M0.74%
65
Neutral
$23.25M0.74%
72
Outperform
$21.86M0.49%
65
Neutral
$12.89M0.80%
63
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FTKI
First Trust Small Cap BuyWrite Income ETF
19.64
4.00
25.58%
AFSM
First Trust Active Factor Small Cap ETF
SYZ
Lazard US Systematic Small Cap Equity ETF
ALIL
Argent Focused Small Cap ETF
ESSC
Eventide Small Cap ETF
SMLL
Harbor Active Small Cap ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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