Investment Strategy
The FT Vest Bitcoin Strategy & Target Income ETF aims to offer investors:
- Partial Bitcoin exposure for potential growth
- High-income generation through strategic investments
- 80%+ allocation to Bitcoin-linked or income-producing assets
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Key Fund Details
| Metric | Value |
|---|---|
| Ticker | DFII |
| Expense Ratio | 0.85% |
| Inception Date | 4/2/2025 |
| Current NAV | $23.79 |
| Total Net Assets | $4.76M |
| 30-Day SEC Yield | -0.75% |
Portfolio Composition
The fund utilizes an options overlay strategy with:
- 18.19% average monthly option overwrite
- 81.81% upside participation
- 7-day average ATM call maturity
Top Holdings
| Instrument | Allocation |
|---|---|
| S&P 500® Mini Index Puts | 1,728.34% |
| MBTX Index Puts | -46.48% |
| S&P 500® Mini Index Calls | -1,583.19% |
Performance Metrics
Since inception (4/2025):
- NAV Return: 17.60%
- Market Price Return: 18.05%
- Outperformed S&P 500® (+4.47%)
- Underperformed Bloomberg Bitcoin Index (+20.69%)
Distribution Profile
- Recent Dividend: $0.3603/share
- Distribution Rate: 18.11%
Premium/Discount Activity:
- 52 premium days (Q2 2025)
- 8 discount days (Q2 2025)
Frequently Asked Questions
Q: How does this ETF generate income?
A: Through a combination of Bitcoin exposure and active options strategies that generate premium income.
Q: What are the risks of this strategy?
A: Investors face Bitcoin price volatility, options assignment risk, and potential capital erosion during market downturns.
Q: How does it compare to holding Bitcoin directly?
A: The ETF provides structured exposure with income generation, unlike direct Bitcoin holdings which offer pure price appreciation.
Q: Is the 18.11% distribution rate sustainable?
A: Distribution rates vary based on options market conditions and Bitcoin price action. Past performance doesn't guarantee future results.
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Important Considerations
- Not FDIC insured - Potential loss of principal
- Tax implications - After-tax returns range from 10.40%-16.93%
- Tracking difference - May underperform direct Bitcoin investments
Investors should carefully review the prospectus and consult financial advisors to determine if this ETF aligns with their risk tolerance and investment objectives.
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