FT Vest AAPL & Target Income ETF (XVAP)

The FT Vest AAPL & Target Income ETF (XVAP) is an exchange-traded fund sponsored by First Trust and sub-advised by Vest Financial. It offers exposure to the shares of Apple Inc., the maker of the iPhone, Mac and related services, while seeking to deliver a targeted level of income.

The fund combines its Apple exposure with an options-based strategy, generally selling call options on the stock, to collect premium that supports regular distributions toward a stated target rate. The portfolio may hold Treasuries and FLEX options as part of this structure.

Because calls are written, the fund gives up part of Apple's upside in strong rallies while remaining exposed to declines in the stock price.