FTHI
First Trust Exchange-Traded Fund VI First Trust BuyWrite Income ETF
📎 Investment Objective
The First Trust BuyWrite Income ETF (FTHI) seeks to provide current income and downside protection by employing a covered call strategy on a portfolio of large-cap U.S. stocks.
Overview
ETF tracking First Trust Exchange-Traded Fund VI First Trust BuyWrite Income ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The First Trust BuyWrite Income ETF (FTHI) seeks to provide current income and downside protection by employing a covered call strategy on a portfolio of large-cap U.S. stocks.
🎯 Investment Strategy
FTHI invests in a portfolio of large-cap U.S. stocks and writes (sells) call options on those stocks to generate option premium income. The fund aims to provide current income and reduce volatility compared to a traditional long-only equity portfolio.
✨ Key Features
- Employs a covered call strategy to generate income and reduce risk
- Invests in a portfolio of large-cap U.S. stocks
- Aims to provide current income and downside protection
- Relatively low expense ratio of 0.00%
⚠️ Primary Risks
- Equity market risk - the value of the underlying stocks may decline
- Option writing risk - the fund may miss out on stock appreciation if the written call options are exercised
- Concentration risk - the fund is focused on large-cap U.S. stocks
- Liquidity risk - the fund may have difficulty trading certain positions
👤 Best For
FTHI may be suitable for investors seeking current income and downside protection in their equity allocation, with a moderate risk tolerance. The covered call strategy can help reduce volatility compared to a traditional long-only equity portfolio, though it may also limit upside potential.