Cboe Vest's New "Dividend Aristocrats" ETF (Ticker: KNG) Combines Quality Dividend Growers with Partial Call Overwriting Strategy, Targeting Income with Growth Cboe Vest is building the second generation of option-based index strategies. Such strategies incorporate novel uses of options seeking to achieve targeted portfolio return features such as risk mitigation, growth or income. Similar to the evolution from market-capitalization-weighted traditional beta strategies to factor tilt second-generation strategies (colloquially known as "smart beta"), Options 2.0 strategies are an evolution from the first-generation of simple but fully covered-call and put writing options strategies. Cboe Vest S&P 500® Dividend Aristocrats Target Income ETF (Ticker: KNG) is the first index-based ETF to combine the dividend growth factor, a recognized smart beta strategy, with a second-generation dynamic and partial covered-call options strategy. KNG, which seeks to produce income with growth, is comprised of an equally weighted portfolio of well-known "Aristocrats," S&P 500 stocks with a history of 25 years of consecutive dividend growth. A monthly call overwrite strategy applied to a small part of the stock holdings converts a portion of the future growth of each stock into current income. The fund gives investors access to a strategy targeting annualized income of 3.0% over the annual dividend yield of S&P 500 Index, with proportional price returns, in a single ticker.
McLean, VA - March 27, 2018 - Cboe Vest Financial LLC ("Cboe Vest"), a majority-owned asset management subsidiary of Cboe Global Markets, Inc., has launched the Cboe Vest S&P 500® Dividend Aristocrats Target Income ETF (KNG), its first ETF.
