Total return for KNG since inception
*In EU – First Trust Vest S&P 500 Dividend Aristocrats Target Income UCITS ETF
The KNG fund invests in companies that are part of the S&P 500 Dividend Aristocrats. Companies that have increased their dividends every year for at least 25 years. On top of that, they issue options against a small portion of the portfolio. Overall, I think this is a defensive approach. The companies the fund invests in are large, stable pieces that don’t grow very fast but generate reliable cash flow. The option strategy on top of that is not offensive as it is only used on about 20 percent of the holdings.
KNG won’t do as well as tech companies or the regular S&P 500 in a good stock market mood. In the long term, it should tick along and generate an okay annual total return. A reasonable benchmark could be the global index that has generated 7 percent annual returns measured in Swedish kronor in the very long term. If you can generate around that 7 percent return, you’re in good company. A fund like KNG might be able to do that in the long run. It will most likely not perform +35% in a single year. It also won’t perform – 35% in any year. No guarantees, of course, but the companies in the fund have held up decently in major downturns historically. They also fall, but not as much as broad stock market indices or the toughest growth companies.
Since its launch in the EU at the end of 2025, KNG has generated a total return of approximately 8 percent (measured in euros). Whether that’s good or bad is up to each individual to decide. I am happy with the progress so far and continue to accumulate more, when I can.
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