FT Vest 20+ Year Treasury & Target Income ETF

Frequently Asked Questions About LTTI

What does LTTI invest in?

The FT Vest 20+ Year Treasury & Target Income ETF, or "the Fund," primarily aims to deliver consistent income to shareholders, while also pursuing capital growth as a secondary objective. Typically, to achieve these goals, the Fund allocates capital to U.S. government debt instruments and employs a sophisticated options strategy. This strategy entails both purchasing and writing (selling) various U.S. exchange-traded call options, including Flexible Exchange options, which are linked to the performance of the iShares 20+ Year Treasury Bond ETF. A fundamental aspect of its operation is that, under normal market conditions, at least 80% of the Fund's net assets (inclusive of any borrowed capital for investment) will be invested in holdings that offer exposure to U.S. Treasury securities.

What is the expense ratio of LTTI?

FT Vest 20+ Year Treasury & Target Income ETF (LTTI) charges an expense ratio of 0.65%. This is the annual fee deducted from fund assets to cover management and operations.

What is LTTI's distribution yield?

LTTI's trailing-twelve-month yield is 9.52%, calculated from the sum of distributions over the past year divided by the current price.

How does LTTI's covered-call strategy work?

LTTI sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside — when the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

How big is LTTI?

FT Vest 20+ Year Treasury & Target Income ETF (LTTI) manages $14.8M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is LTTI actively managed or an index fund?

LTTI's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.