FT Vest SMID Rising Dividend Achievers Target Income ETF (SDVD)

The FT Vest SMID Rising Dividend Achievers Target Income ETF is an exchange-traded fund from First Trust Advisors with Vest Financial serving as subadvisor. It combines a portfolio of dividend-growing small- and mid-capitalization U.S. stocks with an options strategy intended to boost income.

The equity portion is based on a Nasdaq rising dividend index that selects small and mid-cap companies with a track record of increasing their dividends. On top of that, the fund writes call options to generate premium income and pursue a targeted level of annual distributions. The option overlay can limit participation in strong market gains, so the fund is oriented more toward income than maximum capital growth.