KNG vs SOXY

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

SOXYDYieldMax Target 12 Semiconductor Option Income ETF

In short

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.

SOXY YieldMax without the synthetic wrapper. SOXY owns a focused book of 15 to 30 actual chip stocks and sells call spreads against them, aiming at a 12% annualized distribution paid monthly.

Stated mandate

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.

SOXY The actively managed ETF seeks a 12% annualized distribution target and capital appreciation through a focused portfolio of 15–30 publicly traded semiconductor companies. It generates income by selling call spreads on its holdings while retaining direct equity exposure.

Why people hold it

• 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.

• SOXY Real shares, not a derivative stand-in: the fund holds 15 to 30 semiconductor companies directly, so the equity exposure sits alongside the option income rather than replacing it.yieldmaxetfs.com
• Call spreads, not plain covered calls. Upside is capped inside a band instead of handed away above a single strike, which leaves the chip rally partly intact.yieldmaxetfs.com
• A declared 12% annualized distribution target, paid monthly, gives you a stated yardstick rather than whatever premium the options market happens to throw off that month.yieldmaxetfs.com

Worth knowing

• 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.

• SOXY At 1.06%, the fee sits well above most option-income peers (LQDW runs 0.34%, YLDE 0.47%), so the strategy clears a higher bar before income reaches you.
• The 12% is a target, not a floor. Payouts hinge on option premiums and the path of chip stocks, and the fund's own scoring standing lands in the lower half of its option-income group.
• Young (launched December 2024), lightly traded, and concentrated in one famously cyclical sector, so spreads can be wide and the ride bumpy.

Full KNG profile⁠

Full SOXY profile⁠