First Trust Introduces FT Vest Silver Strategy & Target Income ETF (SLVY)
A single-ticker solution seeking to capture a portion of silver’s price return while generating current income.
First Trust Advisors L.P. (“First Trust”) announced today that it has launched the FT Vest Silver Strategy & Target Income ETF (Cboe BZX: SLVY) (the “fund”). SLVY is an actively managed exchange-traded fund (“ETF”) that seeks to provide investors with current income and capital appreciation. Managed by Vest Financial LLC, the fund combines options contracts referencing the iShares Silver Trust (“SLV”) and short-term U.S. Treasury securities to pursue both goals without directly owning silver.
“Historically, many investors have used silver in an effort to diversify their portfolios and manage inflation risk. We believe SLVY builds on that by offering an income-oriented approach to silver exposure, extending the strategy we've applied across our Target Income Strategies® to this asset class," said Ryan Issakainen, CFA, Senior Vice President, ETF Strategist at First Trust.
SLVY gains exposure to the price returns of silver by purchasing call options and selling put options referencing SLV. To generate income, the fund also employs a partial covered call strategy – selling at-the-money call options referencing SLV each month, which converts a portion of silver’s potential upside into current income in exchange for capping some participation in silver’s gains.
