First Trust BuyWrite Income ETF

Frequently Asked Questions About FTHI

What does FTHI invest in?

The fund primarily seeks to generate current income, while also pursuing capital appreciation as a secondary objective. It achieves this by investing in a diverse portfolio of U.S.-listed equity securities, spanning companies of all market capitalizations. This core holding is supplemented by an options strategy involving the sale (writing) of U.S. exchange-traded covered call options on the Standard & Poor's 500 Index. The purpose of this options strategy is to generate additional cash flow through the receipt of premiums. These premiums, defined as the income earned by selling an option contract, may be distributed to shareholders each month. The allocation to this options strategy is capped at 20% of the fund's total net asset value.

What is the expense ratio of FTHI?

First Trust BuyWrite Income ETF (FTHI) charges an expense ratio of 0.75%. This is the annual fee deducted from fund assets to cover management and operations.

What is FTHI's distribution yield?

FTHI's trailing-twelve-month yield is 8.80%, calculated from the sum of distributions over the past year divided by the current price.

How does FTHI's covered-call strategy work?

FTHI sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside — when the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

How big is FTHI?

First Trust BuyWrite Income ETF (FTHI) manages $2.53B in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is FTHI actively managed or an index fund?

FTHI's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.