First Trust Launches Six Single-Stock Target Income ETFs

First Trust has launched six FT Vest Target Income ETFs linked to AMD (XVAD), Amazon (XVAZ), Alphabet (XVGL), Microsoft (XVMS), Meta (XVMT) and Palantir (XVPT). The strategies combine direct and synthetic stock exposure with call selling, supplemented by Treasuries and potential box spreads. They seek monthly distributions targeting an annualized rate approximately 15 percentage points above the S&P 500’s forward dividend yield, before fees and expenses. Call selling adjusts to help meet the income target while preserving some upside participation. Investors remain exposed to declines in the underlying shares, and distributions may include return of capital. The payout target is not guaranteed and does not represent an expected total return.