FTKI vs. CAOS

Last updated Jun 4, 2026

FTKI (First Trust Small Cap BuyWrite Income ETF) and CAOS (Alpha Architect Tail Risk ETF) are both exchange-traded funds - FTKI is a Derivative Income fund actively managed by First Trust, while CAOS is a Options Trading fund actively managed by Alpha Architect. Both are actively managed. Over the past year, FTKI returned 18.90% vs 1.88% for CAOS. At a correlation of -0.33, they often move in opposite directions. FTKI charges 0.85%/yr vs 0.63%/yr for CAOS.

Performance

FTKI vs. CAOS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Small Cap BuyWrite Income ETF (FTKI) and Alpha Architect Tail Risk ETF (CAOS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FTKI achieves a 9.41% return, which is significantly higher than CAOS's 0.82% return.

FTKI

• 1D: -0.19%
• 1M: 0.46%
• YTD: 9.41%
• 6M: 9.82%
• 1Y: 18.90%
• 3Y*: —
• 5Y*: —
• 10Y*: —

CAOS

• 1D: 0.12%
• 1M: -0.09%
• YTD: 0.82%
• 6M: 0.69%
• 1Y: 1.88%
• 3Y*: 4.26%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

FTKI vs. CAOS - Yearly Performance Comparison

	2026 (YTD)	2025
FTKI First Trust Small Cap BuyWrite Income ETF	9.41%	4.33%
CAOS Alpha Architect Tail Risk ETF	0.82%	2.28%

Correlation

The correlation between FTKI and CAOS is -0.29, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.29
Correlation (All Time) Calculated using the full available price history since Feb 28, 2025	-0.33

FTKI vs. CAOS - Sectors Allocation Comparison

Sectors	FTKI	CAOS
Financial Services	21.8%	12.4%
Technology	14.9%	33.1%
Industrials	12.8%	8.5%
Consumer Cyclical	11.2%	10.0%
Energy	9.6%	4.1%
Healthcare	9.0%	9.6%
Real Estate	7.4%	2.0%
Basic Materials	4.3%	1.9%
Communication Services	3.2%	10.4%
Consumer Defensive	2.1%	5.4%
Utilities	2.1%	2.6%

Return for Risk

FTKI vs. CAOS — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FTKI

FTKI Risk / Return Rank: 63
FTKI Sharpe Ratio Rank: 59
FTKI Sortino Ratio Rank: 61
FTKI Omega Ratio Rank: 61
FTKI Calmar Ratio Rank: 70
FTKI Martin Ratio Rank: 64

CAOS

CAOS Risk / Return Rank: 40
CAOS Sharpe Ratio Rank: 34
CAOS Sortino Ratio Rank: 37
CAOS Omega Ratio Rank: 39
CAOS Calmar Ratio Rank: 49
CAOS Martin Ratio Rank: 39

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FTKI vs. CAOS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Small Cap BuyWrite Income ETF (FTKI) and Alpha Architect Tail Risk ETF (CAOS). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	FTKI	CAOS	Difference
Sharpe ratio: Return per unit of total volatility	1.96	1.24	+0.72
Sortino ratio: Return per unit of downside risk	2.81	1.98	+0.83
Omega ratio: Gain probability vs. loss probability	1.37	1.26	+0.11
Calmar ratio: Return relative to maximum drawdown	3.41	2.49	+0.92
Martin ratio: Return relative to average drawdown	11.54	6.22	+5.31
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FTKI vs. CAOS - Sharpe Ratio Comparison

The current FTKI Sharpe Ratio is 1.96, which is higher than the CAOS Sharpe Ratio of 1.24. The chart below compares the historical Sharpe Ratios of FTKI and CAOS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FTKI	CAOS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.96	1.24	+0.72
Sharpe Ratio (All Time) Calculated using the full available price history	0.73	1.21	-0.48

Drawdowns

FTKI vs. CAOS - Drawdown Comparison

The maximum FTKI drawdown since its inception was -15.17%, which is greater than CAOS's maximum drawdown of -3.60%. Use the drawdown chart below to compare losses from any high point for FTKI and CAOS.

Drawdown Indicators

	FTKI	CAOS	Difference
Max Drawdown Largest peak-to-trough decline	-15.17%	-3.60%	-11.57%
Max Drawdown (1Y) Largest decline over 1 year	-5.56%	-0.76%	-4.80%
Max Drawdown (3Y) Largest decline over 3 years	—	-3.60%	—
Current Drawdown Current decline from peak	-0.97%	-1.07%	+0.10%
Average Drawdown Average peak-to-trough decline	-2.59%	-0.90%	-1.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.64%	0.30%	+1.34%

Volatility

FTKI vs. CAOS - Volatility Comparison

First Trust Small Cap BuyWrite Income ETF (FTKI) has a higher volatility of 2.54% compared to Alpha Architect Tail Risk ETF (CAOS) at 0.26%. This indicates that FTKI's price experiences larger fluctuations and is considered to be riskier than CAOS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FTKI	CAOS	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.54%	0.26%	+2.28%
Volatility (6M) Calculated over the trailing 6-month period	7.44%	1.03%	+6.41%
Volatility (1Y) Calculated over the trailing 1-year period	9.69%	1.52%	+8.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.31%	4.26%	+11.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.31%	4.26%	+11.05%

FTKI vs. CAOS - Expense Ratio Comparison

FTKI has a 0.85% expense ratio, which is higher than CAOS's 0.63% expense ratio.

Dividends

FTKI vs. CAOS - Dividend Comparison

FTKI's dividend yield for the trailing twelve months is around 11.51%, while CAOS has not paid dividends to shareholders.

Position	TTM	2025
CAOS Alpha Architect Tail Risk ETF	0.00%	0.00%
FTKI First Trust Small Cap BuyWrite Income ETF	11.51%	8.99%

Frequently Asked Questions

Can I hold both FTKI and CAOS in my portfolio?

FTKI and CAOS have a correlation of -0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FTKI or CAOS?

FTKI has higher volatility (2.54%) compared to CAOS (0.26%). In terms of maximum drawdown, FTKI dropped -15.17% vs CAOS's -3.60%.

Which ETF is better, FTKI or CAOS?

On 1-year performance, FTKI leads with 18.90% vs 1.88% for CAOS. On fees, CAOS is cheaper at 0.63% per year. On volatility, CAOS has been the lower-risk option at 0.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FTKI or CAOS?

Over the 1-year period, FTKI has performed better with a 18.90% return vs 1.88%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FTKI or CAOS?

CAOS is cheaper with a 0.63% expense ratio, compared with 0.85% for FTKI.

Which ETF pays a higher dividend yield, FTKI or CAOS?

FTKI has the higher dividend yield at 11.51%, compared with 0.00% for CAOS.

What is the main difference between FTKI and CAOS?

FTKI is categorized as Derivative Income, while CAOS is Options Trading. They also come from different issuers: First Trust and Alpha Architect. Their fees differ too: 0.85% for FTKI and 0.63% for CAOS.

Which has better risk-adjusted returns?

FTKI currently has the higher Sharpe Ratio (1.96 vs 1.24), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.