FTQI
First Trust Exchange-Traded Fund VI First Trust Hedged BuyWrite Income ETF
📎 Investment Objective
The First Trust Hedged BuyWrite Income ETF (FTQI) seeks to provide current income and capital appreciation by investing in a portfolio of U.S. equity securities and writing (selling) call options on those securities.
Overview
ETF tracking First Trust Exchange-Traded Fund VI First Trust Hedged BuyWrite Income ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The First Trust Hedged BuyWrite Income ETF (FTQI) seeks to provide current income and capital appreciation by investing in a portfolio of U.S. equity securities and writing (selling) call options on those securities.
🎯 Investment Strategy
FTQI invests in a portfolio of large-cap U.S. equity securities and writes (sells) call options on those securities. The fund aims to generate income from the option premiums received, while also participating in the potential upside of the underlying stocks. The fund's strategy is designed to provide downside protection in declining markets through the option writing component.
✨ Key Features
- Seeks to generate current income and capital appreciation through a hedged equity strategy
- Invests in a portfolio of large-cap U.S. stocks and writes call options on those securities
- Option writing strategy aims to provide downside protection in declining markets
- Relatively low expense ratio of 0.00%
⚠️ Primary Risks
- Market risk: The value of the fund's investments may decline due to general market conditions
- Option writing risk: The fund's option writing strategy may not be successful in providing downside protection
- Concentration risk: The fund's investments are concentrated in the U.S. equity market
- Liquidity risk: The fund may have difficulty selling certain investments at an advantageous time or price
👤 Best For
This ETF may be suitable for investors seeking current income and capital appreciation, with a moderate risk tolerance. The hedged equity strategy may appeal to investors who want some downside protection in their portfolio, but are still interested in participating in the potential upside of the U.S. equity market.