Multi-Asset Diversified Income Index Fund (MDIV) Covered Calls

The First Trust Multi-Asset Diversified Income Index Fund is an exchange-traded fund that tracks the NASDAQ US Multi-Asset Diversified Income Index. The fund provides exposure to five distinct income-generating asset segments: dividend-paying equities, Real Estate Investment Trusts (REITs), preferred securities, Master Limited Partnerships (MLPs), and high-yield corporate bonds. It is designed for investors seeking a high level of current income and broad diversification in a single vehicle.

You can sell covered calls on Multi-Asset Diversified Income Index Fund to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for MDIV (prices last updated Fri 4:16 PM ET):

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The First Trust Multi-Asset Diversified Income Index Fund (MDIV) is a multi-asset exchange-traded fund that seeks to provide high current income through a diversified portfolio of yield-oriented securities. Managed by First Trust Advisors L.P., the fund tracks a rules-based index that allocates roughly equal weightings to five different asset classes. This structure is intended to provide a more stable income stream than a single-sector fund by spreading risk across various segments of the financial markets that often react differently to economic cycles.

The fund unique strategy involves a quarterly rebalancing process to maintain its target allocations. By including everything from traditional stocks to more specialized structures like MLPs and preferred shares, MDIV offers a "one-stop shop" for income seekers. Because many of its holdings are sensitive to interest rates, such as REITs and preferreds, the fund is often used as a tactical tool to balance a broader portfolio or to target a specific yield threshold without the complexity of managing individual specialized securities.

Core Business and Products

The primary product is the fund shares, which represent a composite of five sub-portfolios. As of 2026, the fund generally allocates 20% to each of its core segments: common stocks, REITs, preferred securities, MLPs, and high-yield corporate debt. This cross-asset approach ensures that the fund is not overly dependent on the health of any single industry, though it maintains a significant tilt toward the financial and energy sectors due to the nature of high-yielding instruments.

Competition

The multi-asset income space is highly competitive, as investors increasingly look for diversified yield. A major competitor for diversified equity and dividend exposure is the iShares Multi-Asset Income ETF. Another notable peer that targets a variety of income-producing asset classes is the Invesco Zacks Multi-Asset Income ETF.

For investors focused specifically on the "alternative" side of income, the fund competes with the Global X Alternative Income ETF. Competition in this category is based on the fund distribution yield, the total expense ratio, and the underlying volatility of the diversified mix. MDIV is often distinguished by its inclusion of MLPs, which are less common in broad aggregate income funds.

Strategic Outlook and Innovation

The strategic focus for the fund is to provide a resilient income solution in a fluctuating interest rate environment. Management emphasizes the fundamental screening of the index, which requires securities to meet specific liquidity and yield criteria before inclusion. This disciplined approach is intended to avoid "yield traps"—companies with high yields that may be at risk of cutting distributions. The fund aims to provide a reliable monthly payout to satisfy the needs of income-oriented retail and institutional investors.

Innovation for the platform involves the continuous monitoring of the correlation between the five asset segments. As market conditions change, the fund seeks to ensure that its diversification benefits remain intact. Furthermore, the fund is positioned to capture shifts in the energy and real estate sectors, adapting its holdings to include the most stable and productive income-producers in those spaces. By maintaining a transparent, rules-based methodology, the organization strives to remain a leading choice for investors looking to simplify their income-generating strategies.

Want more examples? MDGL Covered Calls | MDLN Covered Calls