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First Trust
A U.S. covered-call equity fund: 166 stocks, 97% United States, unhedged, for 0.85% a year.
Funds of this type differ on a small set of facts. Where this fund sits on each:
Equity exposure with a covered-call overlay. Returns come from the underlying equity basket plus option income, with some upside typically traded away for higher cash distributions. It tracks the Nasdaq US Small Mid Cap Rising Dividend Achievers Index.
| Concentration | Top 10 holdings = 13.5% of the fund | holdings↓ |
| Fee | 0.85% per year | costs↓ |
| Currency | CAD-unhedged | facts↓ |
| Wrapper | Covered call / options | holdings↓ |
How this fund works
Holds the underlying investments and writes covered calls on part of the position. The option premiums add to distributions and cap part of the upside.
Top holding: Comfort Systems USA Inc 2.0% (broad) · Top sector: Financials 33.4% (sector-tilted) · Top region: United States 97.4% (single-country)
Financials 33.4%·Industrials 29.1%·Consumer Discretionary 9.9%·Technology 7.9%·Consumer Staples 6.7%·Other 4.3%·Other (locked) 8.5%
United States 97.4%·Puerto Rico 1.0%·PR 0.9%·BS 0.5%
Source: fund provider disclosure.
The management fee was 0.85% a year, or about $85 for every $10,000 held. The options overlay is run inside the fund, so there is no separate fee, though it changes the return and distribution profile. Trading spreads are separate from this fee. This is the management fee as published by the provider; the total expense ratio can be slightly higher once fund operating costs are added.
How durable the fund is, and what moved its price.
| Assets | $2M· net assets |
| Leverage / overlay | Options overlay |
What moved the price
| Ticker | SDVD.NE |
| Exchange | Cboe Canada |
| Currency | CAD |
| FX strategy | CAD-unhedged |
| Asset class | Equity |
| Structure | Covered call / options |
| Theme | Dividend & Income |
| Geography | United States |
| Index tracked | Nasdaq US Small Mid Cap Rising Dividend Achievers Index |
| Provider | First Trust |
| Mgmt fee | 0.85% |
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Prices as of last close.
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