(FTHI) First Trust BuyWrite Income - Ratings and Ratios

The First Trust BuyWrite Income ETF, listed on the NASDAQ under the ticker FTHI, is designed to generate income through a unique investment strategy. By primarily investing in equity securities listed on U.S. exchanges, the fund aims to provide a solid foundation for its investment portfolio. Additionally, the fund employs an option strategy, which involves writing, or selling, U.S. exchange-traded call options on the Standard & Poor's 500 Index. This approach allows the fund to potentially generate income from the premiums received from selling these call options.

The call options written by the fund are structured as a laddered portfolio, meaning they have staggered expiration dates, all of which are less than one year. This laddering approach helps to manage the risk associated with the options and provides a regular stream of income as the options expire and are replaced. The call options are written at-the-money to slightly out-of-the-money, which means the strike price of the option is close to the current market price of the underlying index. This strategy is designed to balance the potential income generated from the options premiums with the risk of the underlying index moving against the fund.

As a derivative income ETF, the First Trust BuyWrite Income ETF is categorized as a type of investment fund that generates income through the use of derivatives, such as options. The fund is domiciled in the United States and has an ISIN of US33738R3084. For more information about the fund, including its investment objectives, strategies, and risks, investors can visit the company's website at http://www.ftportfolios.com/. The fund's unique approach to generating income makes it an attractive option for investors seeking regular income and a potentially lower-risk investment strategy.