GIAX vs KNG

GIAXDNicholas Global Equity and Income ETF

KNGAFT Cboe Vest S&P 500 Dividend Aristocrats Target Income ETF

In short

GIAX Most income ETFs sell calls on the stocks they hold. GIAX runs a global equity core plus daily credit call spreads on US indices, where a further-out long call caps each short. Income first, paid monthly.

KNG Dividend Aristocrats with an income motor bolted on. KNG equal-weights the S&P 500's 25-year dividend raisers, then sells calls on each stock, sized by rule to hit an income target above the index's yield. Monthly payer since 2018.

Stated mandate

GIAX The actively managed ETF primarily seeks current income and secondarily seeks capital appreciation. It combines global-equity exposure through passive ETFs or representative securities with daily index credit call spreads and Treasury or cash holdings.

KNG The Fund seeks to track the price and yield of the Cboe S&P 500 Dividend Aristocrats Target Income Index Monthly Series before fees and expenses.

Why people hold it

• GIAX The option engine uses credit call spreads, so each short call is paired with a further out-of-the-money long call that caps the loss on that position.
• Equity sleeve is global and built from passive ETFs or representative securities, with Treasuries and cash sitting alongside the option book.
• The mandate puts current income first and capital appreciation second, and the fund distributes monthly.
• Actively managed inside a standard 1940 Act fund, so no K-1 and no commodity-pool paperwork at tax time.

• KNG Base portfolio is the S&P 500 Dividend Aristocrats: roughly 140 companies that have raised dividends for at least 25 straight years, held equal-weighted instead of by market cap.cboe.com
• The overlay is written stock by stock, not as one index-level call, and the call count floats by rule to chase an income target set against the S&P 500's dividend yield.sec.govcboe.com
• Calls cover only part of each position, so a slice of every holding stays uncapped. Income lands monthly.sec.gov
• Running since 2018, well before the covered-call crowd showed up, and one of the stronger implementations in its peer group.

Worth knowing

• GIAX The fee is 1.03% a year, high for this corner of the market. Several option-income peers run far cheaper, such as YLDE at 0.47% and NBOS at 0.59%.
• Distributions can include return of capital, which hands back part of your own money and lowers your cost basis instead of adding to it.
• Launched in 2024 with a compact book of around 29 positions, and selling index call spreads daily limits how much of a strong rally the fund keeps.

• KNG Calls cap the upside on the covered portion of each stock, so in a fast rally those shares can lag the Aristocrats the fund holds outright.sec.gov
• Coverage floats with option pricing, so how much of the portfolio is written against (and how much upside stays open) shifts over time.cboe.comsec.gov
• Distributions can include return of capital, which trims your cost basis. At 0.74%, the fee sits about level with the 0.75% cohort median, and it prices like an options strategy.

Full GIAX profile⁠

Full KNG profile⁠