KNG: A Defensive Covered Call ETF To Navigate Market Uncertainty (Rating Upgrade)

Summary

• Market volatility necessitates exposure to defensive ETFs like FT Cboe Vest S&P 500 Dividend Aristocrats Target Income ETF for resilience and reliable dividend income.
• KNG has a generous 9% starting dividend yield, with distributions paid monthly. The dividend is supported by an ATM option strategy.
• Despite a modest 4.5% price decline, KNG's price stability and income generation make it a buy in the current market environment of uncertainty.
• KNG's reasonable 0.75% expense ratio and focus on income over capital appreciation align well with a potentially weaker market outlook.