First Trust High Yield Opportunities 2027 Term Fund

Frequently Asked Questions About FTHY

What does FTHY invest in?

The First Trust High Yield Opportunities 2027 Term Fund operates as a diversified, closed-end investment vehicle. Its primary objective is the generation of current income. Established on June 25, 2020, the fund maintains its principal office in Wheaton, Illinois.

What is the expense ratio of FTHY?

First Trust High Yield Opportunities 2027 Term Fund (FTHY) charges an expense ratio of 3.26%. This is the annual fee deducted from fund assets to cover management and operations.

What is FTHY's distribution yield?

FTHY's trailing-twelve-month yield is 11.09%, calculated from the sum of distributions over the past year divided by the current price.

How does FTHY's covered-call strategy work?

FTHY 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.

What is the duration of FTHY?

Effective duration measures FTHY's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. FTHY's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of FTHY?

FTHY's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.