FT Vest MSFT & Target Income ETF (XVMS)

The FT Vest MSFT & Target Income ETF (XVMS) is an exchange-traded fund sponsored by First Trust and sub-advised by Vest Financial. It provides exposure to the stock of Microsoft Corporation, the software and cloud computing company, while pursuing a targeted level of income.

The fund pairs its Microsoft-linked exposure with an options strategy, generally writing call options on the stock, to generate premium income that supports regular distributions toward a stated target rate. Treasuries and FLEX options may be used as part of the structure.

Writing calls caps how much the fund benefits from sharp increases in Microsoft shares, while the fund remains exposed to declines in the stock.