FTHI: FIRST TRUST BUYWRITE INCOME ETF
FIRST TRUST BUYWRITE INCOME ETF (FTHI)
The FIRST TRUST BUYWRITE INCOME ETF (FTHI) is designed to generate income by using a strategy that involves buying stocks and selling call options on those same stocks. This approach aims to provide regular cash distributions while also aiming for capital appreciation.
What the Numbers Show
• Current Price: $24
• Estimated 12-Month Starting Price (Oct 9, 2025): $23.75
• Year-to-Date (YTD) Price Return: +1.61%
• YTD Total Return: +8.64%
• One-Year Price Return: +1.05%
• One-Year Total Return: +10.51%
• Three-Year Price Return: +16.96%
• Three-Year Total Return: +52.72%
The ETF has shown steady price growth over the past year and three years, with total returns significantly higher than just price returns due to its income-generating strategy.
Income and Distribution Explanation
FTHI pays distributions regularly, usually monthly. Over the last 12 months, it paid out a total of $2.115 per share in distributions. The current distribution yield is 8.81%, which means that for every dollar invested at the current price, you can expect to receive about 8.8 cents annually in distributions.
NAV Erosion Explanation
The ETF has an erosion score of 94, labeled as "Stable/sideways," indicating low risk of NAV (Net Asset Value) erosion based on its performance history. The supplied data is sufficient to evaluate price erosion but does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
Pros
• High Distribution Yield: FTHI offers a high distribution yield, which can be attractive for income-focused investors.
• Regular Income Payments: With monthly distributions, this ETF provides consistent cash flow.
• Capital Appreciation Potential: The total returns over the past year and three years suggest that the strategy has been successful in generating both income and capital gains.
Cons
• High Erosion Score: Although the erosion score is labeled as "good," a high score can be concerning for some investors who prioritize stability.
• No Historical NAV Data: Without historical NAV data, it's hard to definitively confirm or rule out NAV erosion.
Beginner Takeaway
The FIRST TRUST BUYWRITE INCOME ETF (FTHI) is an income-focused fund that uses covered call writing to generate regular distributions. It has a high distribution yield and has shown positive total returns over the past year and three years, indicating both income generation and potential for capital appreciation. However, it's important to note that while the erosion score suggests low risk of NAV erosion, there is no historical NAV data available to confirm this definitively.
This ETF could be a good fit for investors looking for regular cash flow and willing to take on some level of risk in pursuit of higher returns. Always consider your investment goals and risk tolerance before adding any new fund to your portfolio.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | APPLE INC | AAPL | 7.76% |
| 2 | NVIDIA CORP | NVDA | 7.36% |
| 3 | DREYFUS GOVT CM INST 289 | n/a | 4.91% |
| 4 | MICROSOFT CORP | MSFT | 3.15% |
| 5 | AMAZON.COM INC | AMZN | 2.59% |
| 6 | n/a | DELL | 2.57% |
| 7 | JPMORGAN CHASE & CO | JPM | 2.51% |
| 8 | ALPHABET INC CLASS A | GOOGL | 2.42% |
| 9 | ASML HOLDING NV ADR | ASML | 2.33% |
| 10 | BROADCOM INC | AVGO | 2.12% |