First Trust Exchange-Traded Fund IV - First Trust BuyWrite Income ETF (FTHI)
NASDAQ (NMS) NASDAQ (NMS) Primary 
FTHI: Tax-Efficient Dividend Income From Solid Option ETF
FTHI is a high-quality, diversified option ETF with a strong track record, offering a 9.2% yield and monthly distributions—ideal for income-focused investors. The fund's strategy of writing out-of-the-money options on S&P 500 stocks generates reliable income while preserving capital, though it caps upside in bull markets. FTHI underperforms traditional index ETFs during strong market growth, but could outperform if market returns slow, making it attractive in lower-growth environments.
FTHI: Why DIVO Looks Better (Rating Downgrade)
First Trust BuyWrite Income ETF holds 166 stocks and 9 short positions in call options, aiming to enhance distributions. FTHI meets its primary objective of providing income with a yield close to 9%, but price history points to a decay in inflation-adjusted value. Among popular buy-write ETFs, DIVO looks more compelling than FTHI, with a better balance between income and preservation of capital.
FTHI: Is The Trade-Off Between Income And Growth Worth It?
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: Low Volatility, Not Great Track Record
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: A Covered Call Play That Deserves More Attention
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.
Beacon Pointe Advisors LLC Has $1.81 Million Position in First Trust BuyWrite Income ETF (NASDAQ:FTHI)
Beacon Pointe Advisors LLC trimmed its holdings in First Trust BuyWrite Income ETF (NASDAQ:FTHI – Free Report) by 31.9% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 84,913 shares of the company’s stock after selling 39,836 shares during the quarter. Beacon Pointe Advisors LLC owned about 0.44% of First Trust BuyWrite Income ETF worth $1,814,000 as of its most recent filing with the Securities and Exchange Commission (SEC). Several other institutional investors and hedge funds also recently made changes to their positions in FTHI. Raleigh Capital Management Inc. lifted its position in First Trust BuyWrite Income ETF by 53.5% in the 3rd quarter. Raleigh Capital Management Inc. now owns 2,846 shares of the company’s stock valued at $58,000 after acquiring an additional 992 shares in the last quarter. Channel Wealth LLC purchased a new position in shares of First Trust BuyWrite Income ETF during the fourth quarter valued at approximately $211,000. Independent Wealth Network Inc. purchased a new position in shares of First Trust BuyWrite Income ETF during the fourth quarter valued at approximately $225,000. Perigon Wealth Management LLC bought a new stake in First Trust BuyWrite Income ETF during the fourth quarter worth $267,000. Finally, Treasure Coast Financial Planning raised its position in First Trust BuyWrite Income ETF by 20.4% in the 4th quarter. Treasure Coast Financial Planning now owns 14,175 shares of the company’s stock valued at $303,000 after buying an additional 2,400 shares during the last quarter. First Trust BuyWrite Income ETF Trading Up 0.1 % Shares of NASDAQ:FTHI opened at $22.57 on Monday. The stock has a market cap of $589.53 million, a PE ratio of 18.59 and a beta of 0.72. The stock’s fifty day simple moving average is $22.25 and its two-hundred day simple moving average is $21.74. First Trust BuyWrite Income ETF has a 1-year low of $19.56 and a 1-year high of $22.65. First Trust BuyWrite Income ETF Increases Dividend The company also recently declared a monthly dividend, which was paid on Tuesday, April 30th. Investors of record on Wednesday, April 24th were given a dividend of $0.168 per share. This is a positive change from First Trust BuyWrite Income ETF’s previous monthly dividend of $0.16. This represents a $2.02 dividend on an annualized basis and a dividend yield of 8.93%. The ex-dividend date was Tuesday, April 23rd. First Trust BuyWrite Income ETF Company Profile (Free Report) The First Trust BuyWrite Income ETF (FTHI) is an exchange-traded fund that is based on the S&P 500 index. The fund is an actively managed portfolio of US-listed stocks, with an overlay of short calls on the S&P 500. FTHI was launched on Jan 6, 2014 and is managed by First Trust.
