Rather than mechanically tracking an index, this actively managed ETF has the portfolio team hand-pick US companies with a record of steadily growing dividends, seeking both current income and capital appreciation. Its non-diversified structure concentrates the portfolio in a small number of selected holdings.

It suits income-focused investors who want a stable dividend stream along with additional returns from the use of options.

It is an ETF run with an active management approach by the Castellan Group.

The fund selects and holds companies that have steadily raised their dividends, based on financial soundness, earnings growth, and a sustainable dividend payout ratio. It opportunistically writes call options on its holdings to seek additional income, and it is an active strategy in which the portfolio team adjusts the portfolio at its own discretion.

• Combines selection of dividend growth companies with call option income
• Active management based on the portfolio team's discretion

Assets under management (AUM) stand at $198.2M, and the total expense ratio is 0.45% per year.

Unlike index-tracking passive dividend ETFs, performance depends on the portfolio team's stock selection and use of options, and the fee level is correspondingly somewhat higher.

Given its strategy of combining dividend growth companies with option income, return trends depend both on the broader movement of dividend stocks and on the team's stock selection and options management results. Volatility may appear as interest rates and the earnings environment change.

In market environments with strong demand for income, strategies that combine dividends with option premiums tend to attract attention. However, because of its actively managed, non-diversified structure, fund flows are sensitive to management performance and to the market's appetite for income.

Its strengths are the selection of dividend growers and the addition of option income, while the fee burden of active management and non-diversified concentration are its drawbacks.

The VIG, SCHD, and VYM shown in the table are lower-fee passive alternatives in the same dividend category, tracking indexes and diversifying broadly. If you want to boost income through call options, you can look at the covered call strategies of JEPI and JEPQ, and if you want a heavier emphasis on dividend growth, DGRO is also worth considering.

These are the points to check before investing in CTIF. As an actively managed dividend ETF, it is wise to thoroughly confirm its fee level, degree of non-diversified concentration, and the characteristics of its call option strategy in advance.

Non-diversified concentration and dependence on active management results are the main sources of volatility. Writing call options adds income but can limit upside in a bull market, so it is important to fully understand the characteristics of the strategy.

It suits investors who want an active income strategy combining dividend growth selection with option income. If low-cost, broad diversification is the priority, passive dividend ETFs such as VIG and SCHD can be alternatives.