FT Vest Technology Dividend Target Income ETF

Frequently Asked Questions About TDVI

What does TDVI invest in?

TDVI aims for an 8% annual distribution, before fees and expenses, over the annual dividend yield of the Nasdaq 100 Index. However, the delivery of the target income is not assured. Distributions stem from dividends from technology companies within the Nasdaq Technology Dividend Index and premiums from selling naked index call options. These options are European style, written at-the-money, and will have expirations of less than 30 days. Each week, TVDI attempts to bridge the difference between the dividend income of its equity portfolio and its target distribution by selling at-the-money, naked call options on the NDX and/or SPX or related ETFs. The income from stock dividends and option premiums is expected to be distributed monthly. Investors should be aware that selling naked index call options carries a high level of risk.

What is the expense ratio of TDVI?

FT Vest Technology Dividend Target Income ETF (TDVI) charges an expense ratio of 0.75%. This is the annual fee deducted from fund assets to cover management and operations.

What is TDVI's distribution yield?

TDVI's trailing-twelve-month yield is 7.63%, calculated from the sum of distributions over the past year divided by the current price.

How does TDVI's covered-call strategy work?

TDVI 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 TDVI?

FT Vest Technology Dividend Target Income ETF (TDVI) manages $647.7M 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 TDVI actively managed or an index fund?

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