FTHI - First Trust BuyWrite Income - Stock & Dividends

The First Trust BuyWrite Income ETF (NASDAQ:FTHI) aims to generate income by investing in a diversified portfolio of U.S. equity securities listed on major exchanges, such as the NYSE and NASDAQ.

In addition to its equity holdings, the fund employs an option strategy to enhance returns. This involves selling (or 'writing') call options on the Standard & Poor's 500 Index, a widely followed benchmark of the U.S. stock market. By selling these options, the fund receives premiums from buyers, which can provide a regular stream of income.

The fund's option strategy is designed to be flexible and adaptable, with a laddered portfolio of call options that expire within a year. This approach allows the fund to take advantage of changing market conditions and adjust its strategy as needed. The options are typically written at-the-money or slightly out-of-the-money, which means they have a higher likelihood of expiring worthless, allowing the fund to retain the premiums received.

As a U.S.-domiciled fund, the First Trust BuyWrite Income ETF is subject to U.S. regulatory requirements and oversight. Investors can access more information about the fund and its investment approach on the website of its sponsor, First Trust Portfolios LP, at http://www.ftportfolios.com/.