Microsoft

NVIDIA

Apple

Amazon

Alphabet

Broadcom

Tesla

Johnson & Johnson

First Trust BuyWrite Income

FTHI is an actively managed portfolio of US-listed stocks, with an overlay of short calls on the S&P 500.

FTHI leverages a buy-write strategy on the S&P 500, offering a 9% distribution yield but capping upside potential. FTHI's strategy involves selling call options, generating monthly income but limiting growth, making it suitable for income-focused investors rather than those seeking capital appreciation. The fund underperformed the S&P 500 over the past decade, highlighting the trade-off between steady income and limited growth in a strong bull market.

FTHI: Is The Trade-Off Between Income And Growth Worth It?

Covered call ETFs like FTHI offer attractive monthly distributions and reduced volatility but lag the S&P 500 in long-term performance due to capped gains in the long portion of portfolio. FTHI's defensive allocation and options strategy result in lower valuations and consistent income, making it suitable for income-focused portfolios, not broad equity exposure. Despite lower valuations and profitability on par with the S&P 500, FTHI's performance is less competitive in bullish markets due to limited upside.

FTHI: Low Volatility, Not Great Track Record

First Trust BuyWrite Income ETF uses options to increase income and capital appreciation. The FTHI ETF holds positions in well-known, large-cap companies such as Microsoft, Apple, and Amazon. FTHI has a sector allocation that includes technology, healthcare, consumer staples, and utilities to mitigate concentration risk.

FTHI: A Covered Call Play That Deserves More Attention

AdvisorShares Dorsey Wright ADR ETF

Global X SuperDividend US ETF

iShares U.S. Dividend & Buyback ETF

Invesco International BuyBack Achievers ETF

Invesco Buyback Achievers ETF

Schwab US Dividend Equity ETF

80% of S&P 500 companies are entering pre-earnings buyback blackouts, according to Bloomberg. Analysts anticipate a potential rebound post-blackout.

Buyback Bonanza: The Top 7 ETFs to Profit From Corporate Cash Splurges

First Trust BuyWrite Income ETF is an actively managed fund holding 179 stocks and rolling short positions in S&P 500 call options. FTHI return has been average relative to peers over the last 3 years, but it has outperformed for 12 months. The fund meets its primary objective of providing income, although distribution history raises a doubt about yield sustainability.

FTHI: Beating Peers Lately, But Yield History Is Weird

JPMorgan Equity Premium Income ETF

First Trust BuyWrite Income ETF seeks to provide current income to its investors. The income objective is met with a two pronged approach. The fund yields over 8% and has had decent NAV preservation since inception in 2014.

FTHI Vs. JEPI: Who Has Got You Covered?

First Trust BuyWrite Income ETF is an actively managed exchange-traded fund that aims to provide current income and capital appreciation. The FTHI ETF holds 200+ stocks and sells call options on the S&P 500 index, for a 12-month distribution rate of 8.38% and a total expense ratio of 0.85%. FTHI has underperformed its main competitor JPMorgan Equity Premium Income ETF in total return and yield, but it beats it in capital and dividend growth.

FTHI: Behind JEPI In Total Return, Ahead Of It In Growth

Both JPMorgan Equity Premium Income ETF and Invesco S&P 500 BuyWrite ETF focus on Large-Cap stocks and aim to provide income, but they use different option strategies to that end. This article reviews both ETFs in depth and compares each's CAGR based on whether dividends were taken or reinvested. For income investors still wanting some equity exposure, I would give the JPMorgan Equity Premium Income ETF a BUY rating.

JEPI Vs. FTHI: The More Popular ETF Is The Better Choice

First Trust BuyWrite Income ETF has a portfolio of 200+ stocks and generates income by selling call options on the S&P 500 index. Valuation metrics are better than for the benchmark.

FTHI: 8.8% Yield Likely To Revert To The Mean

FTHI holds a portfolio with sector weights close to the S&P 500. It sells call options on the S&P 500 index to generate income.

FTHI: ETF With A 8.6% Yield And A Caveat

FTHI has paid monthly dividends since inception with a yield between 4% to 5%. FTHI will be able to generate steady income on the basis of its investments in high yield stocks and premium income on writing of index options.

FTHI: Steady Income, Poor Price Growth, Relatively Less Risky

Aptus Collared Income Opportunity ETF

VictoryShares US Large Cap High Div Volatility Wtd ETF

VictoryShares US Small Cap High Div Volatility Wtd ETF

First Trust Dorsey Wright Momentum & Dividend ETF

WisdomTree U.S. SmallCap Dividend Fund

Siren DIVCON Dividend Defender ETF

iShares Core Dividend Growth ETF

WisdomTree US Smallcap Quality Dividend Growth Fund

WisdomTree US Quality Dividend Growth Fund

WisdomTree U.S. High Dividend Fund

Amplify CWP Dividend & Option Income ETF

Invesco Dow Jones Industrial Average Dividend ETF

WisdomTree U.S. LargeCap Dividend Fund

WisdomTree U.S. MidCap Dividend Fund

WisdomTree U.S. Total Dividend Fund

WisdomTree Dividend ex-Financials Fund

VanEck Morningstar High Dividend ETF

iShares Select Dividend ETF

First Trust Morningstar Dividend Leaders Index Fund

Fidelity Dividend ETF for Rising Rates

Fidelity High Dividend ETF

First Trust Hedged BuyWrite Income ETF

Each month, I give a broad overview of dividend and income-focused ETFs, selecting them from my growing database of about 750 funds. I've added a seventh category to this monthly series: risk management ETFs, bringing the total number of funds analyzed to 88.

News for First Trust BuyWrite Income ETF (FTHI)