FTQI: 11.7% Yielding Covered Call Fund Fixes Some Category Problems

Trapping ValueInvesting Group LeaderFollow5ShareSavePlay(8min)CommentsSummaryFirst Trust Nasdaq BuyWrite Income ETF targets current income via covered call strategies on Nasdaq Composite securities.FTQI manages approximately $791 million in assets and has operated since 2014, emphasizing monthly distributions.The ETF currently yields about 12.26%, with payouts adjusted quarterly but consistently in double digits over the past year.FTQI’s yield stability and income focus may appeal to investors seeking high, regular distributions from an equity-based ETF.Looking for a helping hand in the market? Members of Conservative Income Portfolio get exclusive ideas and guidance to navigate any climate. Learn More » JHVEPhoto/iStock Editorial via Getty Images First Trust Nasdaq BuyWrite Income ETF (FTQI), the exchange-traded fund that we will be talking about today, has been operational since 2014. It has around $791 million in net assets and invests primarily in the securitiesThis article was written byTrapping Value47.6K FollowersFollowTrapping Value is a team of analysts with over 40 years of combined experience generating options income while also focusing on capital preservation. They run the investing group Conservative Income Portfolio in partnership with Preferred Stock Trader. The investing group features two income-generating portfolios and a bond ladder. Trapping Value provides Covered Calls, and Preferred Stock Trader covers Fixed Income.

The Covered Calls Portfolio is designed to provide lower volatility income investing with a focus on capital preservation. The fixed income portfolio focuses on buying securities with high income potential and heavy undervaluation relative to comparatives. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.