First Trust Cross-Lists an Additional ETF in Mexico

As Mexican demand for international investment solutions grows, First Trust expands its lineup to include Target Outcome Investments®.

First Trust Advisors L.P. (“First Trust”), a global ETF provider and asset manager, announced today that it has cross-listed an additional ETF on the Mexican stock exchange, the Bolsa Mexicana de Valores and/or the Bolsa Institucional de Valores. As many institutional investors seek to invest within Mexico, First Trust is pleased to expand its offerings of ETFs. The FT Cboe Vest S&P 500® Dividend Aristocrats Target Income ETF® (Ticker: KNG) (the “fund” or “KNG”) is based on the Cboe S&P 500® Dividend Aristocrats Target Income Index Monthly Series (the “index”). The fund will normally invest at least 80% of its total assets (including investment borrowings) in the common stocks and call options that comprise the index. The index’s primary goal is to generate an annualized level of income from stock dividends and option premiums that is approximately 3% over the annual dividend yield of the S&P 500® Index and has a secondary goal of generating price returns that are proportional to the price returns of the S&P 500® Index.

“In the past, equity investors who were seeking income had to choose between high dividend payers--which have historically delivered lower total returns with higher volatility, or dividend growers--which have historically delivered higher total returns but with lower dividend yields. We designed KNG with this dilemma in mind, targeting a level of income similar to that of high dividend payers, but with the potential for total returns and lower volatility expected of high-quality dividend growers,” said Karan Sood, CEO of Cboe Vest.

“We are pleased to expand our Mexico cross-listings to include the FT Cboe Vest S&P 500® Dividend Aristocrats Target Income ETF®. KNG offers investors a unique solution for their US equity exposure that systematically applies a covered-call strategy to a portfolio of dividend growth stocks.” said April Reppy Suydam, Head of Latin America Distribution, First Trust.

For more information about First Trust, please contact Ryan Issakainen at (630) 765-8689 or

About First Trust

First Trust, a federally registered investment advisor, and its affiliate First Trust Portfolios L.P. (“FTP”), a FINRA registered broker-dealer, are privately held companies that provide a variety of investment services. First Trust is the investment advisor to exchange-traded funds, closed-end funds, mutual funds, separate managed accounts and provides supervisory services to FTP sponsored unit investment trusts. First Trust’s assets under management were approximately $207.832 billion as of July 30, 2021. This includes the supervisory services First Trust provides to FTP sponsored unit investment trusts, which are unmanaged. FTP is a sponsor of unit investment trusts and distributor of mutual fund shares and exchange-traded fund creation units. First Trust is based in Wheaton, Illinois. For more information, visit

You should consider the fund’s investment objectives, risks, and charges and expenses carefully before investing. Contact First Trust Portfolios L.P. at 1-800-621-1675 to obtain a prospectus which contains this and other information about the fund. The prospectus should be read carefully before investing.

Risk Considerations

The fund’s return may not match the return of the Cboe S&P 500® Dividend Aristocrats Target Income Index Monthly Series. Securities held by the fund will generally not be bought or sold in response to market fluctuations.

The fund has characteristics unlike many other traditional investment products and may not be appropriate for all investors.

Investors buying or selling fund shares on the secondary market may incur customary brokerage commissions. Market prices may differ to some degree from the net asset value of the shares. Investors who sell fund shares may receive less than the share’s net asset value. Shares may be sold throughout the day on the exchange through any brokerage account. However, unlike mutual funds, shares may only be redeemed directly from a fund by authorized participants, in very large creation/redemption units. If a fund’s authorized participants are unable to proceed with creation/redemption orders and no other authorized participant is able to step forward to create or redeem, fund shares may trade at a discount to a fund’s net asset value and possibly face delisting.

The fund’s shares will change in value, and you could lose money by investing in a fund. There can be no assurance that the fund’s investment objective will be achieved. The outbreak of the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses for investors. The COVID-19 pandemic may last for an extended period of time and will continue to impact the economy for the foreseeable future.

The fund may invest in securities issued by companies concentrated in a particular asset class, country, region, industry or sector, which involves additional risks including limited diversification.

High portfolio turnover may result in higher levels of transaction costs and may generate greater tax liabilities for shareholders.

There is no assurance that the index provider, or any agents that act on its behalf, will compile the index accurately, or that the index will be determined, maintained, constructed, reconstituted, rebalanced, composed, calculated, or disseminated accurately.

Large capitalization companies may grow at a slower rate than the overall market.

The fund’s covered call strategy may limit its ability to distribute dividends eligible for treatment as qualified dividend income and to distribute dividends eligible for the dividends-received deduction for corporate shareholders.

Certain fund investments may be subject to restrictions on resale, trade over-the-counter market or in limited volume, or lack an active trading market. Illiquid securities may trade at a discount and may be subject to wide fluctuations in market value.

Leverage may result in losses that exceed the amount originally invested and may accelerate the rates of losses.

The fund will effect all or a portion of its creations and redemptions for cash, rather than in-kind securities. As a result, the fund may be less tax-efficient.

As inflation increases, the present value of the fund’s assets and distributions may decline.

The fund may be a constituent of one or more indices which could great affect a fund’s trading activity, size and volatility.

If a counterparty defaults on its payment obligations, the fund will lose money and the value of fund shares may decrease.

The fund's investment in dividend-paying securities may cause the fund to underperform similar funds that do not consider an issuer's track record of paying dividends.

The use of options and other derivatives can lead to losses because of adverse movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of the derivatives.

As the use of Internet technology has become more prevalent in the course of business, a fund has become more susceptible to potential operational risks through breaches in cyber security.

A fund classified as “non-diversified” may invest a relatively high percentage of its assets in a limited number of issuers. As a result, a fund may be more susceptible to a single adverse economic or regulatory occurrence affecting one or more of these issuers, experience increased volatility and be highly concentrated in certain issuers.

First Trust Advisors L.P. is the adviser to the fund. First Trust Advisors L.P. is an affiliate of First Trust Portfolios L.P., the fund’s distributor.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.

S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”), a division of S&P Global; Cboe® is a registered trademark of Cboe. The Index, S&P, and Cboe trademarks have been licensed for use by the Sub-Advisor, and in turn, sub-licensed by the Advisor, including for use by the Fund. The Fund is not sponsored, endorsed, sold, or promoted by Cboe and/or its affiliates (the “Cboe Group”), or S&P and/or its affiliates (together, the “S&P Group”). Neither the Cboe Group nor the S&P Group make any representation regarding the advisability of investing in the Fund and shall have no liability whatsoever in connection with the Fund. Target Outcome Investments, Target Outcome ETFs and Target Income ETF are registered trademarks of Cboe Vest Financial. Target Income Investments, Target Income Strategy and Target Outcome Strategies are trademarks of Cboe Vest Financial.

Source: First Trust Advisors L.P.

The views and opinions expressed are for informational purposes only. This material is not intended to be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities (in any jurisdiction to any person to whom it is not lawful to make such an offer) and should not be considered specific legal, investment or tax advice.

For Investors in Mexico:

The fund has been cross-listed on the Bolsa Mexicana de Valores and/or the Bolsa Institucional de Valores.

Investors should review all relevant offering materials, including all applicable risk factors, and should consult with financial and tax advisors relating to tax and other consequences of investing in a particular security prior to making an investment. None of the securities herein have been registered with the National Securities Registry (Registro Nacional de Valores) maintained by the Mexican National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores). Securities not cross-listed on the Bolsa Mexicana de Valores and/or the Bolsa Institucional de Valores nor registered with the National Securities Registry (Registro Nacional de Valores) may not be offered or sold publicly or otherwise be the subject of brokerage activities in Mexico, except pursuant to the private placement exemption set forth in article 8 of the Securities Market Law (Ley del Mercado de Valores), to institutional and qualified investors, as defined under Mexican law and rules thereunder.

The cross listing of the securities identified herein does not constitute or imply a certification as to the investment quality of such securities or the accuracy or completeness of the information included in all offering materials. The offering materials are solely First Trust’s responsibility and have not been reviewed or authorized by the Mexican National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores) or the Bolsa Mexicana de Valores and/or the Bolsa Institucional de Valores and may not publicly offered or distributed in Mexico. In making an investment decision, all investors, including any Mexican investor, must rely on their own examination of the relevant securities and the marketing materials.


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