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FTKI - ETF AI Analysis
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First Trust Small Cap BuyWrite Income ETF (FTKI)
Rating:71Outperform
Price Target:―
Positive Factors
Strong Performing Holdings
Several top holdings, such as QuantumScape and Insmed, have shown strong year-to-date performance, supporting the fund’s overall returns.
Sector Diversification
The ETF is spread across multiple sectors, including Financials, Industrials, and Technology, reducing reliance on any single industry.
Small Cap Focus
The fund targets small-cap companies, which can offer higher growth potential compared to larger, more established firms.
Negative Factors
High Expense Ratio
The ETF charges a relatively high expense ratio, which can eat into investor returns over time.
Weak Overall Performance
The fund has experienced negative returns across key timeframes, including year-to-date, one-month, and three-month periods.
Over-Concentration in U.S. Market
The ETF is heavily focused on U.S. companies, offering little exposure to international markets and limiting geographic diversification.
FTKI vs. SPDR S&P 500 ETF (SPY)
AUM955.19K
RegionNorth America
Expense Ratio0.85%
Beta0.59
IssuerFirst Trust
Inception DateFeb 26, 2025
Dividend Yield8.86%
Asset ClassEquity
Index TrackedNo Underlying Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume690
30 Day Avg. Volume259
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
21.32Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering175
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FTKI Summary
The First Trust Small Cap BuyWrite Income ETF (FTKI) focuses on small-cap U.S. companies and uses a unique strategy called a buy-write approach to generate income. This means it invests in smaller companies while selling call options to earn extra money, which can help reduce the impact of market ups and downs. FTKI includes businesses across various industries, such as technology and healthcare, with holdings like Lumentum Holdings and InterDigital. Investors might consider FTKI for its potential to provide both income and growth, especially if they want exposure to smaller companies. However, it’s important to know that small-cap stocks can be more volatile, meaning their prices may rise and fall more dramatically than larger 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
The First Trust Small Cap BuyWrite Income ETF (FTKI) leans heavily on U.S. small-cap stocks, with a notable tilt toward technology and financial sectors driving its performance. Lumentum Holdings is rising steadily, buoyed by growth in AI and cloud infrastructure, while Western Union shows mixed results, balancing digital service growth against macroeconomic headwinds. Insmed is lagging, weighed down by profitability concerns despite promising product developments. The fund’s buy-write strategy adds a layer of income generation, but its sector concentration means performance hinges on the fortunes of tech and financial names.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Lumentum Holdings | 3.24% | $31.28K | $28.07B | 362.04% | 61 Neutral | |
| Argan | 1.73% | $16.74K | $4.55B | 125.78% | 73 Outperform | |
| Nu Holdings | 1.64% | $15.80K | $80.20B | 61.62% | 79 Outperform | |
| Western Union | 1.32% | $12.78K | $2.97B | -12.54% | 69 Neutral | |
| CareTrust REIT | 1.28% | $12.34K | $8.25B | 34.71% | 80 Outperform | |
| TSMC | 1.24% | $11.95K | $1.23T | 47.15% | 81 Outperform | |
| Granite Construction | 1.23% | $11.84K | $5.17B | 31.04% | 70 Outperform | |
| Monarch Casino & Resort | 1.23% | $11.84K | $1.79B | 24.43% | 78 Outperform | |
| ASML Holding | 1.21% | $11.72K | $404.78B | 48.84% | 81 Outperform | |
| Insmed | 1.19% | $11.53K | $37.84B | 151.05% | 43 Neutral |
FTKI Technical Analysis
Positive
―
Price Trends
18.48
Positive
18.26
Positive
17.76
Positive
Market Momentum
0.15
Negative
65.39
Neutral
85.75
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 18.90, equal to the 50-day MA of 18.48, and equal to the 200-day MA of 17.76, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 65.39 is Neutral, neither overbought nor oversold. The STOCH value of 85.75 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
Performance Comparison
FTKI
First Trust Small Cap BuyWrite Income ETF
19.13
0.91
4.99%
AFSM
First Trust Active Factor Small Cap ETF
―
―
―
FSCC
Federated Hermes MDT Small Cap Core ETF
―
―
―
SYZ
Lazard US Systematic Small Cap Equity ETF
―
―
―
ALIL
Argent Focused 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.
Disclaimer
This 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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