ETF Report: FIRST TRUST BUYWRITE INCOME ETF (FTHI)

What this ETF is trying to do

The FIRST TRUST BUYWRITE INCOME ETF, known by its ticker symbol FTHI, is an exchange-traded fund (ETF). This type of investment is designed to provide income to its investors. It uses a strategy called "buywrite," which is a way to generate cash through specific market activities.

What the numbers show

As of July 16, 2026, the current price of FTHI is $23.82. Looking at how the price has changed over time, we can see some growth. The one-year price return was 3.6554%. However, when you look at the "total return," which includes both price changes and the money paid out to investors, the one-year total return was much higher at 13.3147%.

To understand how prices change, let's look at a simple example. Imagine you invested $10,000 into this ETF exactly one year ago when the estimated price was about $22.98 per share. Before any extra money was paid to you, your $10,000 would have grown slightly in value because the share price went up to $23.82.

Income and distribution explanation

This ETF is focused on paying out money to investors. Over the last 12 months, it distributed a total of $2.091 per share. This results in a distribution yield of 8.7783%. These payments usually happen once a month, most often on a Thursday.

It is important to remember that a high yield alone can be misleading. A high percentage might look great, but you must always look at whether the actual price of the ETF is staying healthy or falling.

NAV erosion explanation

"NAV erosion" happens when the value of the underlying assets in an ETF drops significantly over time. If an ETF's share price falls from a high price to a much lower price, it can destroy your "principal." Principal is the original amount of money you put in. If the price collapses, you could lose more money than you gain from the monthly payments.

In the case of FTHI, no price erosion was detected. The data shows a "good" erosion score, meaning the share price has not been shrinking in a way that destroys value.

Pros

• The ETF provides regular monthly income.

• The total return over three years (46.7968%) shows significant growth when including distributions.

• There is no sign of severe price erosion.

Cons

• Income investors usually prefer ETFs that go sideways or slightly up. If an ETF's price collapses, the high yield won't make up for the lost money.

• The price itself does not grow as fast as the total return because much of the value is paid out as cash.

Beginner takeaway

FTHI focuses on providing regular cash payments. While the monthly income is a main feature, it is important to watch the share price. A healthy ETF keeps its price stable or growing so that your original investment stays safe while you collect your distributions.