First Trust Targets SpaceX Exposure With High-Income Covered Call ETF

The FT Vest SPCX & Target Income ETF is designed to provide exposure to Space Exploration Technologies Corp. (SpaceX) while generating elevated income. The actively-managed fund combines direct holdings and synthetic options-based exposure to SpaceX shares, then sells short-dated call options to target annual distributions roughly 15 percentage points above the S&P 500’s dividend yield before fees. Income may also come from Treasuries and box spread strategies. The approach sacrifices some upside participation in SpaceX’s gains in exchange for higher current income and will be concentrated in the aerospace and defense industry.