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Upturn AI SWOT - About
First Trust BuyWrite Income ETF (FTHI)
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Upturn Advisory Summary
03/27/2025: FTHI (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type ETF | Historic Profit 0.23% | Avg. Invested days 49 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | ETF Returns Performance  1.0 |
| Profits based on simulation | Last Close 03/27/2025 |
Key Highlights
Volume (30-day avg) 448377 | Beta 0.73 | 52 Weeks Range 19.76 - 23.44 | Updated Date 03/28/2025 |
52 Weeks Range 19.76 - 23.44 | Updated Date 03/28/2025 |
Upturn AI SWOT
First Trust BuyWrite Income ETF
ETF Overview
Overview
The First Trust BuyWrite Income ETF (FTLB) seeks current income with capital appreciation as a secondary goal, using a covered call strategy on a portfolio of large-cap US stocks.
Reputation and Reliability
First Trust is a well-established ETF provider with a solid reputation for creating innovative investment products.
Management Expertise
First Trust Advisors L.P. has a dedicated team managing ETFs, with extensive experience in options and equity markets.
Investment Objective
Goal
To seek current income with capital appreciation as a secondary objective.
Investment Approach and Strategy
Strategy: The ETF employs a covered call strategy, writing call options on the S&P 500 index.
Composition Primarily holds large-cap US stocks and generates income from the sale of call options.
Market Position
Market Share: Data unavailable.
Total Net Assets (AUM): 588400000
Competitors
Key Competitors
- XYLD
- HNDL
- JEPI
- QYLD
Competitive Landscape
The covered call ETF market is competitive. FTLB differentiates itself through its specific covered call strategy and its focus on the S&P 500. Advantages may include potentially higher income in certain market conditions, while disadvantages might include capped upside potential compared to competitors.
Financial Performance
Historical Performance: Data unavailable.
Benchmark Comparison: Data unavailable.
Expense Ratio: 0.0085
Liquidity
Average Trading Volume
The average trading volume of FTLB indicates reasonable liquidity for most investors, allowing for relatively easy entry and exit.
Bid-Ask Spread
The bid-ask spread is generally tight, reflecting good liquidity and lower transaction costs.
Market Dynamics
Market Environment Factors
Economic conditions, interest rates, and equity market volatility can all impact FTLB's performance. Higher volatility typically leads to higher option premiums, boosting income.
Growth Trajectory
Growth is dependent on the overall equity market performance and the effectiveness of the covered call strategy, along with investor appetite for income-generating assets. No major strategy changes were found.
Moat and Competitive Advantages
Competitive Edge
FTLB's advantage lies in its established covered call strategy on S&P 500 stocks, appealing to investors seeking a combination of income and equity exposure. Its affiliation with First Trust provides credibility and access to research. The fund's consistent application of its strategy may attract investors looking for predictability in income generation. However, the covered call strategy limits upside potential in rapidly rising markets.
Risk Analysis
Volatility
Historical volatility can be moderate, reflecting the volatility of the underlying S&P 500 and the impact of the covered call strategy which dampens price swings.
Market Risk
The ETF is subject to market risk inherent in equity investments, particularly the risk of declining stock prices. The covered call strategy provides some downside protection but can limit upside gains.
Investor Profile
Ideal Investor Profile
The ideal investor is a moderately risk-averse individual seeking current income and moderate capital appreciation. Suitable for those who believe in the long-term growth of large-cap US equities.
Market Risk
FTLB is suitable for long-term investors looking for income and are willing to sacrifice some potential upside in exchange for downside protection.
Summary
The First Trust BuyWrite Income ETF (FTLB) offers a strategy for income generation by employing covered calls on S&P 500 stocks. It is suitable for investors seeking current income and moderate capital appreciation. The covered call strategy provides downside protection but limits upside potential. The ETF's performance is influenced by market volatility and equity market conditions. Investors should consider their risk tolerance and investment goals before investing.
Similar Companies
- XYLD
- QYLD
- JEPI
- RYLD
- FEPI
Sources and Disclaimers
Data Sources:
- First Trust Website
- SEC Filings
- Morningstar
- etf.com
Disclaimers:
The data provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Market share data unavailable.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About First Trust BuyWrite Income ETF
Exchange NASDAQ | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website | ||
The fund will pursue its objectives by investing primarily in equity securities listed on U.S. exchanges and by utilizing an option strategy consisting of writing (selling) U.S. exchange-traded call options on the Standard & Poor's 500® Index (the index). The call options written by the fund will be a laddered portfolio of call options with expirations of less than one year, written at-the-money to slightly out-of-the-money.
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