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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, earns a solid overall rating thanks to several strong small-cap holdings like Sezzle, Credo Technology Group, and Abercrombie & Fitch, which show robust financial performance, positive earnings call sentiment, and supportive technical trends. These strengths are partly offset by weaker names such as Etsy, where financial instability, bearish price signals, and business challenges weigh on the fund. The main risk factor is the ETF’s focus on smaller companies, which can be more volatile and sensitive to operational and valuation issues than larger, more established firms.
Positive Factors
Strong Top Holdings
Several of the largest positions, such as Argan, MasTec, Etsy, Sezzle, and Credo Technology, have shown strong gains this year, helping support the ETF’s overall results.
Broad Sector Diversification
The fund spreads its investments across many sectors, including consumer cyclical, technology, financials, industrials, health care, energy, and others, which helps reduce the impact if one area of the market struggles.
Positive Year-To-Date Performance
The ETF has delivered a positive return so far this year, showing that its strategy has been working in the current market environment.
Negative Factors
High Expense Ratio
The fund’s expense ratio is relatively high for an ETF, which means more of the returns are used to cover fees instead of going to investors.
Heavy U.S. Concentration
With the vast majority of its holdings in U.S. companies and very little exposure abroad, the ETF is heavily tied to the performance of the U.S. market.
Mixed Performance Among Top Holdings
Some key positions like UiPath, Abercrombie & Fitch, and Maplebear have shown weak or negative performance this year, which can drag on the fund’s overall returns.

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

FTKI Summary

The First Trust Small Cap BuyWrite Income ETF (FTKI) invests mainly in smaller U.S. companies across many sectors, such as consumer, technology, and financials. It doesn’t track a single index, but it focuses on small-cap stocks and uses an options strategy on the Russell 2000 and similar small-cap ETFs to generate extra income. Well-known names in the fund include Etsy and Abercrombie & Fitch. Someone might consider FTKI for a mix of income and potential growth from smaller companies, plus diversification. A key risk is that small-cap stocks and the options strategy can make the ETF’s price move up and down more than the overall 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 leans into U.S. small caps with a broad mix, but a few names are steering the ship. Sezzle has been the standout, surging recently and giving the fund a strong growth kicker, while Credo Technology and Scorpio Tankers add steady, rising momentum from tech and energy-related exposure. On the softer side, UiPath has been lagging this year, and Argan’s recent pullback has taken a bit of shine off the portfolio. Overall, the ETF spreads its bets across consumer, tech, and industrial names, keeping sector risk diversified within the U.S. market.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Argan3.05%$767.17K$8.13B153.22%
73
Outperform
UiPath2.16%$543.45K$6.41B14.85%
72
Outperform
Etsy2.09%$527.34K$7.89B38.98%
57
Neutral
MasTec1.85%$466.22K$25.64B51.16%
74
Outperform
Abercrombie Fitch1.82%$459.29K$4.45B9.31%
78
Outperform
Sezzle Inc.1.74%$437.88K$5.22B7.46%
80
Outperform
Maplebear1.69%$425.80K$10.52B-5.13%
79
Outperform
Credicorp1.68%$422.79K$31.99B69.38%
73
Outperform
Texas Roadhouse1.67%$420.60K$13.69B12.28%
72
Outperform
Monarch Casino & Resort1.66%$418.43K$2.19B20.94%
78
Outperform

FTKI Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
19.60
Positive
100DMA
19.25
Positive
200DMA
18.54
Positive
Market Momentum
MACD
RSI
STOCH
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 19.89, equal to the 50-day MA of 19.60, and equal to the 200-day MA of 18.54, indicating a bullish trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, 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
$24.93M0.86%
68
Neutral
$86.81M0.75%
64
Neutral
$79.18M0.64%
66
Neutral
$66.69M0.61%
65
Neutral
$36.29M0.49%
65
Neutral
$24.87M0.74%
70
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FTKI
First Trust Small Cap BuyWrite Income ETF
19.89
3.49
21.28%
AIMS
Acuitas Small Cap Active ETF
RUSC
US Small Cap Equity Active ETF
SYZ
Lazard US Systematic Small Cap Equity ETF
ESSC
Eventide Small Cap ETF
ALIL
Argent Focused 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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