FTKI - ETF AI Analysis
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First Trust Small Cap BuyWrite Income ETF (FTKI)
FTKI, the First Trust Small Cap BuyWrite Income ETF, earns a solid overall rating thanks to several strong core holdings like Abercrombie & Fitch, Maplebear (Instacart), Credo Technology Group, and RenaissanceRe, all of which show robust profitability, positive earnings sentiment, and supportive technical trends that bolster the fund’s quality. The presence of weaker names such as Etsy and Appian, which face financial instability, valuation concerns, and bearish or mixed technical signals, slightly weighs on the rating, and investors should also note the risk that comes from concentrating on smaller companies whose results can be more volatile.
FTKI vs. SPDR S&P 500 ETF (SPY)
- AUM
- 25.22M
- Region
- North America
- Expense Ratio
- 0.86%
- Beta
- 0.54
- Issuer
- First Trust
- Inception Date
- Feb 26, 2025
- Dividend Yield
- 11.96%
- Asset Class
- Equity
- Index Tracked
- No Underlying Index
FTKI Summary
FTKI is an exchange-traded fund that focuses on smaller U.S. companies and aims to provide both income and growth. It uses an options strategy on small-cap stocks rather than tracking a traditional index, with exposure across technology, financials, consumer, health care, and more. Well-known holdings include Etsy and Abercrombie & Fitch, giving investors access to a wide mix of growing businesses while also seeking extra income from option premiums. Someone might invest for diversification and potential income, but should know that small-cap stocks can be more volatile and the fund’s value can go up and down with the market.
How much will it cost me?
FTKI has an expense ratio of 0.86%, which means you’ll pay about $8.60 per year for every $1,000 invested. This is higher than the average ETF cost because it uses an actively managed buy-write (covered call) strategy on small-cap stocks, which is more complex and requires more active oversight than a typical passive index fund.
What would affect this ETF?
This ETF could benefit if the U.S. economy stays healthy, since small-cap stocks and consumer-focused names like Abercrombie & Fitch and Etsy often do well when spending and business activity are strong, and its covered call strategy can help generate income in choppy markets. On the downside, rising interest rates, a slowdown in U.S. growth, or weakness in sectors like technology and financials could hurt small-cap performance, while the options strategy may limit gains in sharp market rallies.
FTKI Top 10 Holdings
FTKI leans into U.S. small caps with a tech and consumer tilt, and a buy-write overlay that aims to smooth the ride. Recent winners like Appian and Maplebear have been powering the fund, with Abercrombie Fitch adding steady strength from the retail side. Etsy is rising again but still feels a bit fragile, while UiPath’s mixed performance shows that not every software name is firing on all cylinders. Credo Technology and Equinox Gold have been lagging, modestly tugging on returns but not dominating the overall story.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 ETSY | Etsy | 2.42% | $620.75K | $8.30B | 51.84% | 57Neutral |
 ANF | Abercrombie Fitch | 2.35% | $603.95K | $7.26B | 123.85% | 78Outperform |
 CART | Maplebear | 2.17% | $557.02K | $14.01B | 58.81% | 79Outperform |
 PATH | UiPath | 2.08% | $533.92K | $7.04B | -10.58% | 72Outperform |
 EHC | Encompass Health | 1.98% | $507.00K | $13.84B | 22.52% | 64Neutral |
 APPN | Appian | 1.93% | $496.26K | $3.57B | 84.21% | 58Neutral |
 STNG | Scorpio Tankers | 1.71% | $439.88K | $4.34B | 31.71% | 75Outperform |
 CRDO | Credo Technology Group Holding Ltd | 1.42% | $365.14K | $25.66B | -35.13% | 77Outperform |
 RNR | Renaissancere Holdings | 1.55% | $396.45K | $14.29B | 32.49% | 78Outperform |
 TXRH | Texas Roadhouse | 1.61% | $412.55K | $12.90B | 15.70% | 72Outperform |
FTKI Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FTKI, the sentiment is Positive. The current price of 19.27 is below the 20-day moving average (MA) of 19.43, below the 50-day MA of 19.41, and above the 200-day MA of 18.86, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 58.02 is Neutral, neither overbought nor oversold. The STOCH value of 41.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTKI.
FTKI Peer Comparison
Comparison Results
| Name | Price | Price Target | AUM | Expense Ratio | Overall Rating |
|---|---|---|---|---|---|
| FTKI | $19.27 | $21.00(8.97% Upside) | $25.22M | 0.86% | 65Neutral |
 RUSC | $35.67 | $53.59(50.24% Upside) | $84.25M | 0.64% | 64Neutral |
 AIMS | $26.37 | $36.16(37.16% Upside) | $83.13M | 0.75% | 65Neutral |
 SYZ | $28.38 | $38.91(37.11% Upside) | $60.79M | 0.61% | 66Neutral |
 ESSC | $27.92 | $40.06(43.47% Upside) | $34.20M | 0.49% | 66Neutral |
 ALIL | $28.40 | $39.07(37.59% Upside) | $21.59M | 0.74% | 69Neutral |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| FTKI | First Trust Small Cap BuyWrite Income ETF | 19.27 | 2.57 | 15.37% | |
| RUSC | US Small Cap Equity Active ETF | 35.67 | 5.57 | 18.52% | |
| AIMS | Acuitas Small Cap Active ETF | 26.36 | 1.18 | 4.71% | |
| SYZ | Lazard US Systematic Small Cap Equity ETF | 28.38 | 4.29 | 17.79% | |
| ESSC | Eventide Small Cap ETF | 27.92 | 3.39 | 13.83% | |
| ALIL | Argent Focused Small Cap ETF | 28.39 | -0.28 | -0.99% |
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.