FTKI vs. HYGW

Last updated Aug 5, 2026

FTKI (First Trust Small Cap BuyWrite Income ETF) and HYGW (iShares High Yield Corporate Bond Buywrite Strategy ETF) are both Derivative Income funds. FTKI is actively managed, while HYGW is passively managed. Over the past year, FTKI returned 23.35% vs 6.30% for HYGW. Their 0.56 correlation means they have sometimes moved together and sometimes differently. FTKI charges 0.85%/yr vs 0.69%/yr for HYGW.

Performance

FTKI vs. HYGW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Small Cap BuyWrite Income ETF (FTKI) and iShares High Yield Corporate Bond Buywrite Strategy ETF (HYGW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FTKI achieves a 14.85% return, which is significantly higher than HYGW's 2.94% return.

FTKI

• 1D: 0.99%
• 1M: 1.77%
• 6M: 10.11%
• YTD: 14.85%
• 1Y: 23.35%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 13.47%

HYGW

• 1D: 0.25%
• 1M: 0.60%
• 6M: 2.29%
• YTD: 2.94%
• 1Y: 6.30%
• 3Y*: 5.58%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 5.81%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FTKI First Trust Small Cap BuyWrite Income ETF	$188.94K	$153.18K	$119.93K
HYGW iShares High Yield Corporate Bond Buywrite Strategy ETF	$522.43K	$620.74K	$795.59K

FTKI vs. HYGW - Yearly Performance Comparison

	2026 (YTD)	2025
FTKI First Trust Small Cap BuyWrite Income ETF	14.85%	4.33%
HYGW iShares High Yield Corporate Bond Buywrite Strategy ETF	2.94%	4.90%

Correlation

The correlation between FTKI and HYGW is 0.52, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.52
Correlation (All Time) Calculated using the full available price history since Feb 27, 2025	0.56

The correlation between FTKI and HYGW has been stable across timeframes, ranging from 0.52 to 0.56 - a consistent structural relationship.

Return for Risk

FTKI vs. HYGW — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

FTKI

FTKI Risk / Return Rank: 88
FTKI Sharpe Ratio Rank: 88
FTKI Sortino Ratio Rank: 89
FTKI Omega Ratio Rank: 88
FTKI Calmar Ratio Rank: 90
FTKI Martin Ratio Rank: 87

HYGW

HYGW Risk / Return Rank: 86
HYGW Sharpe Ratio Rank: 84
HYGW Sortino Ratio Rank: 86
HYGW Omega Ratio Rank: 89
HYGW Calmar Ratio Rank: 84
HYGW Martin Ratio Rank: 90

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

FTKI vs. HYGW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Small Cap BuyWrite Income ETF (FTKI) and iShares High Yield Corporate Bond Buywrite Strategy ETF (HYGW). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FTKI	HYGW	Difference
Sharpe ratio: Return per unit of total volatility	2.33	2.15	+0.18
Sortino ratio: Return per unit of downside risk	3.34	3.13	+0.21
Omega ratio: Gain probability vs. loss probability	1.43	1.44	-0.01
Calmar ratio: Return relative to maximum drawdown	4.21	3.48	+0.74
Martin ratio: Return relative to average drawdown	14.14	15.53	-1.39

FTKI vs. HYGW - Sharpe Ratio Comparison

The current FTKI Sharpe Ratio is 2.33, which is comparable to the HYGW Sharpe Ratio of 2.15. The chart below compares the historical Sharpe Ratios of FTKI and HYGW, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FTKI vs. HYGW - Drawdown Comparison

The maximum FTKI drawdown since its inception was -15.17%, which is greater than HYGW's maximum drawdown of -5.49%. Use the drawdown chart below to compare losses from any high point for FTKI and HYGW.

Drawdown Indicators

	FTKI	HYGW	Difference
Max Drawdown Largest peak-to-trough decline	-15.17%	-5.49%	-9.68%
Max Drawdown (1Y) Largest decline over 1 year	-5.56%	-1.82%	-3.74%
Max Drawdown (3Y) Largest decline over 3 years	—	-3.42%	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-2.36%	-0.59%	-1.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.66%	0.41%	+1.25%

Volatility

FTKI vs. HYGW - Volatility Comparison

First Trust Small Cap BuyWrite Income ETF (FTKI) has a higher volatility of 2.72% compared to iShares High Yield Corporate Bond Buywrite Strategy ETF (HYGW) at 0.88%. This indicates that FTKI's price experiences larger fluctuations and is considered to be riskier than HYGW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FTKI	HYGW	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.72%	0.88%	+1.84%
Volatility (6M) Calculated over the trailing 6-month period	7.64%	2.35%	+5.29%
Volatility (1Y) Calculated over the trailing 1-year period	10.08%	2.94%	+7.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.70%	4.61%	+10.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.70%	4.61%	+10.09%

FTKI vs. HYGW - Expense Ratio Comparison

FTKI has a 0.85% expense ratio, which is higher than HYGW's 0.69% expense ratio.

Dividends

FTKI vs. HYGW - Dividend Comparison

FTKI's dividend yield for the trailing twelve months is around 11.25%, more than HYGW's 10.35% yield.

Position	TTM	2025	2024	2023	2022
FTKI First Trust Small Cap BuyWrite Income ETF	11.25%	8.99%	0.00%	0.00%	0.00%
HYGW iShares High Yield Corporate Bond Buywrite Strategy ETF	10.35%	12.53%	12.30%	15.98%	8.71%

Frequently Asked Questions

Can I hold both FTKI and HYGW in my portfolio?

FTKI and HYGW have a correlation of 0.52, 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 HYGW?

FTKI has higher volatility (2.72%) compared to HYGW (0.88%). In terms of maximum drawdown, FTKI dropped -15.17% vs HYGW's -5.49%.

Which ETF is better, FTKI or HYGW?

On 1-year performance, FTKI leads with 23.35% vs 6.30% for HYGW. On fees, HYGW is cheaper at 0.69% per year. On volatility, HYGW has been the lower-risk option at 0.88%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FTKI or HYGW?

Over the 1-year period, FTKI has performed better with a 23.35% return vs 6.30%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FTKI or HYGW?

HYGW is cheaper with a 0.69% expense ratio, compared with 0.85% for FTKI.

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

FTKI has the higher dividend yield at 11.25%, compared with 10.35% for HYGW.

What is the main difference between FTKI and HYGW?

They also come from different issuers: First Trust and iShares. Their fees differ too: 0.85% for FTKI and 0.69% for HYGW.

Which has better risk-adjusted returns?

FTKI currently has the higher Sharpe Ratio (2.33 vs 2.15), 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.