FTKI vs RDTE

FTKIBFirst Trust Small Cap BuyWrite Income ETF

RDTECRoundhill Russell 2000 0DTE Covered Call Strategy ETF

In short

FTKI Most Russell 2000 income funds own the index and sell calls on it. FTKI runs an actively picked basket of roughly 300 US small caps, then writes index-level calls over the top: income first, appreciation second, paid monthly.

RDTE Roundhill took its 0DTE playbook to small caps. RDTE writes same-day-expiring calls against synthetic Russell 2000 exposure, aiming to convert daily option premium into a weekly income stream.

Stated mandate

FTKI The Fund seeks current income first and capital appreciation second. It primarily invests in small-cap equities listed on U.S. exchanges and writes exchange-traded calls on the Russell 2000 Index or small-cap equity ETFs.

RDTE The Fund primarily seeks current income and secondarily seeks capital appreciation. It uses a synthetic covered-call strategy to generate weekly income while providing exposure to the Russell 2000 Index’s price return.

Why people hold it

• FTKI Two moving parts, one wrapper: an actively chosen small-cap stock portfolio underneath, calls on the Russell 2000 or small-cap ETFs written over the top.ftportfolios.com
• The mandate puts current income first and capital appreciation second, and the cash goes out monthly.ftportfolios.com
• Roughly 300 US-listed small caps sit under the options overlay, spreading the equity risk across the bench instead of a short list of names.

• RDTE The 0DTE mechanic is the whole point: calls that expire the same day, written against small-cap exposure, rather than the monthly options most covered-call funds use.
• Income is the stated first priority, and the prospectus sets a weekly distribution rhythm rather than the usual monthly one.
• Synthetic construction: it reaches for the Russell 2000's price return through options instead of carrying the full small-cap basket.

Worth knowing

• FTKI At 0.86%, it prices above index-run Russell 2000 call writers such as RYLD and RYLG. Active stock selection is what you are paying the difference for.
• Writing calls swaps upside for premium. When small caps run hard, the overlay limits how much of that run the fund keeps.ftportfolios.com
• Launched in 2025 and still a small, lightly traded fund, so bid-ask spreads can run wider than the category's heavyweights.

• RDTE At 0.97% it sits above the 0.76% median for Russell 2000 option-income funds. RYLG (0.35%) and IWMW (0.39%) write calls on the same benchmark for far less.
• Selling calls trades away part of any rally while small-cap drawdowns still come through. Capital appreciation is the secondary goal, not the first one.
• It launched in September 2024, so its live record is short next to longer-tenured Russell 2000 income funds.

Full FTKI profile⁠

Full RDTE profile⁠