At a glance
KNG charges 0.74% a year, above the 0.29% average of the 8 funds most like it (the most expensive of 9). It has $3.53B in assets, the 6th largest of that group; it paid 8.92% of its price in distributions over the past 12 months, monthly. Over the past year it returned +13.3% with distributions reinvested (S&P 500: +11.5%), 6th of those 9 funds; over three years it returned +12.4% a year. At its worst it fell 34.8% in the 2020 crash (S&P 500: 33.7%) and 18.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 7 months and 10 months after the lows. Its ten largest positions make up 16.3% of the fund, out of 69 in all.
The short version
FT Vest S&P 500 Dividend Aristocrats Target Income ETF (KNG) holds the S&P 500 Dividend Aristocrats, which are companies that have raised their dividends for at least 25 years in a row. It also sells monthly call options on part of each position. The option income aims to lift the fund's yield about 8% a year above the S&P 500's dividend yield. The trade-offs are limited upside and a 0.74% expense ratio, about twice what similar funds charge.
Price history
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KNG +13.3% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| KNG official prospectus, to Dec 31, 2025 | — | +6.58% | — | +7.05% | — | +8.49% |
| KNG price data to Oct 27, 2026 | +11.1% | +13.3% | +12.4% | +6.1% | — | +9.1% |
- Over the year to Oct 27, 2026, KNG returned +13.3%, 6th of 9 among similar funds.
- Its 5-year annualized return was +6.1%.
- In the 2020 COVID crash it fell 34.8% and regained its old high 6.6 months after the low.
- Its worst full calendar year was 2022 (-7.0%); its best was 2019 (+26.6%).
- The deepest fall in its price history was 35.1% (Jan 17, 2020 to Mar 23, 2020), recovered by Oct 12, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +11.1% | — |
| 2025 | +7.3% | +6.58% |
| 2024 | +5.9% | +6.02% |
| 2023 | +7.4% | +7.35% |
| 2022 | -7.0% | -6.83% |
| 2021 | +24.8% | +24.37% |
| 2020 | +7.2% | +7.30% |
| 2019 | +26.6% | +25.58% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 34.7% over that stretch · deepest drop along the way 34.8%, back to its old high 6.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 16.6% over that stretch · deepest drop along the way 18.2%, back to its old high 9.8 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $3.5200 | |
| 2025 | $4.5700 | +0.7% |
| 2024 | $4.5400 | +48.9% |
| 2023 | $3.0500 | +48.8% |
| 2022 | $2.0500 | +3.5% |
| 2021 | $1.9800 | +15.1% |
| 2020 | $1.7200 | -9.5% |
| 2019 | $1.9000 |
What's inside
As of Jul 31, 2026, the fund held 69 securities; the ten largest made up 16.34% of assets.
| Holding | Weight | |
|---|---|---|
| AUTOMATIC DATA PROCESSING INC | 1.74% | |
| J.M. SMUCKER COMPANY (THE) | 1.65% | |
| FRANKLIN RESOURCES INC | 1.65% | |
| WEST PHARMACEUTICAL SERVICES INC | 1.65% | |
| STANLEY BLACK & DECKER INC | 1.65% | |
| NUCOR CORP | 1.64% | |
| ABBVIE INC | 1.62% | |
| ROPER TECHNOLOGIES INC | 1.60% | |
| ERIE INDEMNITY COMPANY | 1.58% | |
| W.W. GRAINGER INC | 1.56% | |
| GENERAL DYNAMICS CORP | 1.56% | |
| HORMEL FOODS CORP | 1.56% | |
| COCA-COLA COMPANY (THE) | 1.55% | |
| CINTAS CORP | 1.54% | |
| ABBOTT LABORATORIES | 1.51% |
By country
United States 93.45%Ireland 4.15%Jersey 1.45%Switzerland 1.41%By asset type
Stocks 100.46%By sector
Sectors of the companies held, for the 64% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors added a net $71.1M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -1.17%, +4.78%, +1.43%.
How it works
First Trust's KNG tracks the Cboe S&P 500 Dividend Aristocrats Target Income Index Monthly Series, with Vest Financial as sub-advisor. At least 80% of assets normally sit in the index's securities. The stocks are the S&P 500 Dividend Aristocrats: S&P 500 companies that have raised dividends for at least 25 straight years and meet size and trading rules. As of July 31, 2026, the fund held 69 stocks, led by Automatic Data Processing at about 1.7% of assets.
A call option gives its buyer the right to buy a stock at a set price, the strike. The seller collects a fee, the premium, but gives up gains above that price. Each month, generally on the third Friday, the fund sells one-month calls on each stock, with strikes near the stock's price. Calls usually cover only part of each holding. A formula sets how much, aiming for income roughly 8% a year above the S&P 500's dividend yield.
Payouts come monthly from dividends and premiums. The target is not guaranteed; the advisor reviews it as markets change. The fund may sell stock to settle options or meet the target. That can turn part of a payout into return of capital, meaning investors' own money handed back, and can make the fund less tax-efficient than other ETFs.
What it really costs
- KNG charges 0.74% a year, versus an average of 0.29% for the similar funds below (9th of 9, cheapest first).
Structure and tax notes
- Generates much of its income from selling options (directly or through notes). That income is usually taxed as ordinary income rather than as qualified dividends, and the strategy gives up some upside in strong markets.
In a retirement portfolio
KNG is built to pay a high monthly income from dividends plus option premiums, not to deliver full stock-market growth.
KNG pays monthly. Its trailing 12-month yield was 8.92% as of October 27, 2026. Part of that comes from option premiums, which are usually taxed as ordinary income rather than as qualified dividends. Some payouts may also be return of capital. The 0.74% expense ratio is well above the 0.29% average of similar funds.
The fund launched in 2018, so it has no record from the 2008 crisis. In the 2020 COVID crash, it fell 34.8% and took about 6.6 months to recover. In the 2022 bear market, it fell 18.2% and took about 9.8 months to recover. Its worst calendar year was 2022, at -6.83%. Selling calls did not prevent steep drops, so someone drawing income in a bad year may have to sell shares at low prices. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want monthly income from S&P 500 companies with 25-plus-year records of raising dividends. The trailing yield was 8.92% as of October 27, 2026.
- People willing to give up some gains in strong rallies in exchange for option premiums on top of stock dividends.
- Holders using an IRA or similar account, where option income taxed at ordinary rates and return-of-capital payouts may matter less.
Look elsewhere if
- Cost-conscious investors: KNG's 0.74% expense ratio is the highest of 9 similar funds. NOBL, which holds nearly the same stocks, charges 0.35%.
- Investors who want growth: KNG's 13.3% one-year return to late October 2026 trailed DGRO's 21.4% and VYM's 19.4%.
- Anyone expecting downside protection: selling calls didn't stop a 34.8% drop in the 2020 COVID crash or an 18.2% drop in 2022.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| KNG this fund | — | 0.74% | $3.53B | +13.3% | +12.4% |
| NOBL ProShares S&P 500 Dividend Aristocrats ETF · different strategy | 97% | 0.35% | $11.80B | -42.4% | -9.5% |
| SDY SPDR S&P Dividend ETF · different strategy | 55% | 0.35% | $21.39B | +21.8% | +15.5% |
| VSDA VictoryShares Dividend Accelerator ETF · different strategy | 52% | 0.35% | $244.3M | +14.0% | +15.7% |
| SNPD Xtrackers S&P Dividend Aristocrats Screened… · different strategy | 50% | 0.15% | $3.1M | +17.2% | +14.4% |
| HUSV First Trust Horizon Managed Volatility Dome… · different strategy | 26% | 0.7% | $73.8M | +7.4% | +12.4% |
| SPLV Invesco S&P 500® Low Volatility ETF · different strategy | 24% | 0.25% | $7.09B | +6.2% | +11.8% |
| DGRO iShares Core Dividend Growth ETF · different strategy | 23% | 0.08% | $42.77B | +21.8% | +20.6% |
Questions investors ask
Is KNG good for retirement income?
KNG is designed for income. It pays monthly, and its trailing 12-month yield was 8.92% as of October 27, 2026. There are trade-offs. Option income is usually taxed as ordinary income, some payouts may be return of capital, and the expense ratio is 0.74%. Selling calls also limits gains in rallies and did not stop a 34.8% drop in the 2020 COVID crash. The fund may suit retirees who value cash flow more than growth.
Does KNG pay monthly dividends?
Yes. KNG makes monthly distributions. Each one combines stock dividends with premiums from the call options the fund sells. Over the 12 months to October 27, 2026, it paid $4.54 per share, a yield of 8.92%. The payout is a target, not a promise. The prospectus says the fund may reduce distributions if income falls short, and some payments may be return of capital rather than earnings.
What's the difference between KNG and NOBL?
Both hold the S&P 500 Dividend Aristocrats, and their holdings overlap by about 97% based on the latest N-PORT reports. The difference is that KNG also sells monthly call options on part of each stock to raise its income, while NOBL simply holds the stocks. That gives KNG a much higher yield but caps some gains. KNG's expense ratio is 0.74%, versus 0.35% for NOBL. NOBL is larger, with $11.8 billion in net assets as of August 31, 2026.
What stocks does KNG hold?
As of July 31, 2026, KNG held 69 stocks, all long-time dividend raisers in the S&P 500. The largest were Automatic Data Processing (1.74%), J.M. Smucker (1.65%), Franklin Resources (1.65%), West Pharmaceutical Services (1.65%) and Stanley Black & Decker (1.65%). The top 10 made up just 16.34% of assets. Among the holdings classified by sector, consumer staples was the largest group at 16%. The fund also held 69 written call option positions.
Are KNG distributions taxed as qualified dividends?
Not entirely. The stock dividends inside KNG may qualify for lower tax rates. Option premium income, however, is usually taxed as ordinary income. The prospectus also warns that the fund may sell shares to meet its income target or settle options. That can make part of a payout return of capital, which generally lowers your cost basis instead of being taxed right away. With 152% portfolio turnover, the fund may be less tax-efficient than many ETFs.