(EIPI) First Trust Exchange-Traded - Ratings and Ratios

First Trust Exchange‑Traded Fund VIII (EIPI) is a U.S.–registered ETF that employs derivative strategies to generate income, positioning itself in the “Derivative Income” category and targeting investors seeking yield enhancement through options writing and other structured exposures.

The fund trades at roughly $19.80 per share, with short‑term price trends tracking just above its 20‑day and 50‑day simple moving averages, indicating modest upward momentum. Its 200‑day average sits near $19.00, suggesting a stable longer‑term price floor. Volatility is low, with an average true range of 0.15 (≈0.8% of price), and a beta of 0.76, reflecting less sensitivity to broad market swings than the S&P 500.

Key performance indicators for EIPI include an expense ratio in the mid‑0.6% range, a distribution yield that typically hovers between 5% and 6% annually, and an assets‑under‑management figure exceeding $200 million. The fund’s turnover is moderate, reflecting its systematic options‑based rebalancing schedule, and it maintains a diversified basket of equity securities that serve as the underlying for its option overlays.

Economic drivers for EIPI’s income generation are primarily equity market volatility and the term structure of interest rates. Elevated implied volatility (as measured by the VIX) expands option premiums, boosting the fund’s income stream, while a steepening yield curve can enhance the carry component of its derivative positions. Conversely, prolonged low‑volatility environments compress premiums and pressure distributions.

Macro‑level factors such as corporate earnings trends, fiscal policy shifts, and global risk sentiment directly influence the underlying equity pool and, by extension, the option‑writing opportunities the fund exploits. Monitoring these levers—especially shifts in monetary policy that affect both equity valuations and option pricing—provides a clearer view of EIPI’s income sustainability and price trajectory.