FTKI - ETF AI Analysis

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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

Strong Recent Performance

The ETF has shown positive returns over the past month, three months, and year-to-date, indicating solid recent momentum.

High-Contributing Top Holdings

Several of the largest positions, such as Argan, MasTec, and Amkor, have delivered strong gains, helping support the fund’s overall performance.

Broad Sector Diversification

Holdings spread across financials, technology, industrials, consumer cyclical, energy, health care, and other sectors help reduce the impact of weakness in any single industry.

Negative Factors

Higher Expense Ratio

The fund’s expense ratio is relatively high for an ETF, which can eat into long-term returns compared with lower-cost alternatives.

Single-Country Concentration

With essentially all exposure in U.S. stocks, the ETF offers little geographic diversification and is heavily tied to the U.S. market.

Notable Lagging Holdings

Some meaningful positions, including Veeva Systems and Check Point, have shown weak year-to-date performance, which can drag on the fund’s results if the trend continues.

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

AUM23.59M

RegionNorth America

Expense Ratio0.85%

Beta0.56

IssuerFirst Trust

Inception DateFeb 26, 2025

Dividend Yield11.44%

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume14,150

30 Day Avg. Volume24,610

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

22.77

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering185

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

FTKI Summary

The First Trust Small Cap BuyWrite Income ETF (FTKI) invests in a wide mix of smaller U.S. companies and aims to provide both income and growth. It doesn’t track a single index, but it focuses on small-cap stocks across many sectors like financials, technology, and industrials. Well-known holdings include AstraZeneca and Veeva Systems. FTKI uses an options strategy to generate extra income, which may appeal to investors looking for regular payouts plus long-term growth potential from smaller companies. However, it can still go up and down with the market and may be more volatile than funds focused on larger, more established companies.

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 all about small-cap U.S. names where a handful of winners are doing the heavy lifting. Engineering and infrastructure plays like Argan and MasTec are rising smartly, giving the fund a solid industrial backbone, while chip-related Amkor and networking player Credo are adding extra spark from the tech side. Southern Copper has been a steady metal workhorse, but software names Veeva Systems and Check Point are losing steam and quietly tugging on returns. Overall, the ETF leans into U.S. small caps with a tilt toward financials, tech, and industrials.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
AGX	Argan	2.96%	$676.71K	$9.11B	335.11%	73 Outperform
MTZ	MasTec	2.14%	$489.31K	$29.65B	205.85%	74 Outperform
AMKR	Amkor	1.94%	$443.06K	$19.35B	332.61%	69 Neutral
JLL	Jones Lang Lasalle	1.79%	$407.85K	$15.86B	50.63%	79 Outperform
CRDO	Credo Technology Group Holding Ltd	1.77%	$404.32K	$35.98B	319.38%	77 Outperform
FUTU	Futu Holdings	1.75%	$400.19K	$22.42B	78.42%	70 Outperform
AZN	AstraZeneca	1.63%	$371.64K	$292.69B	32.74%	80 Outperform
SCCO	Southern Copper	1.57%	$358.56K	$149.05B	96.97%	73 Outperform
ETSY	Etsy	1.50%	$343.13K	$6.04B	41.91%	57 Neutral
STRL	Sterling Infrastructure	1.48%	$338.65K	$15.25B	237.96%	71 Outperform

FTKI Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

19.44

Positive

100DMA

19.04

Positive

200DMA

18.22

Positive

Market Momentum

MACD

0.10

Positive

RSI

60.39

Neutral

STOCH

12.93

Positive

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 19.61, equal to the 50-day MA of 19.44, and equal to the 200-day MA of 18.22, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 60.39 is Neutral, neither overbought nor oversold. The STOCH value of 12.93 is Positive, 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
FTKI	―	―	$23.59M	0.85%	68 Neutral
AFSM	―	―	$89.88M	0.75%	70 Neutral
SYZ	―	―	$61.94M	0.74%	64 Neutral
ALIL	―	―	$25.46M	0.74%	72 Outperform
ESSC	―	―	$25.22M	0.49%	65 Neutral
SMLL	―	―	$13.86M	0.80%	64 Neutral

Performance Comparison

FTKI

First Trust Small Cap BuyWrite Income ETF

19.77

3.32

20.18%

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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