ETF Report: FIRST TRUST NASDAQ BUYWRITE INCOME ETF (FTQI)

What this ETF is trying to do

The FIRST TRUST NASDAQ BUYWRITE INCOME ETF, known by its ticker FTQI, is an exchange-traded fund. 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 movements.

What the numbers show

As of July 16, 2026, the current price of FTQI is $22.15. Looking back at the last year, the price has grown by about 12.38%. When you include the extra money paid out to investors, the total return for the past year was 26.36%.

To see how much the price changed, we can look at a simple example. Imagine you had $10,000 to invest in this ETF one year ago when the estimated price was about $19.71 per share. Before any extra payments were added, your $10,000 would have grown to roughly $11,238 based on the price increase alone.

Income and distribution explanation

This ETF is known for paying out money regularly. Over the last 12 months, it distributed a total of $2.418 per share. The distribution yield is 10.92%. This means the amount of cash paid out relative to the price is quite high. 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 very high percentage might look good, but investors should 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 number to a much lower number, 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 make from the monthly payments.

However, for FTQI, no price erosion was detected. The data shows a "good" status for erosion, meaning the share price has been growing rather than shrinking.

Pros

• The ETF has shown strong total returns over the last year (26.36%) and three years (58.91%).

• It provides regular monthly income.

• The price has been increasing rather than eroding.

Cons

• The high distribution yield means investors should watch the price closely to ensure it stays stable.

Beginner takeaway

Income investors usually prefer ETFs that go sideways (stay at the same price) or move slightly up. They prefer this because they want their monthly checks without losing the original money they invested. Since FTQI has shown price growth alongside its payments, it has avoided the danger of severe NAV erosion.