FTHI: Actively Managed Buy-Write Strategy For Equity Income Investors

Michael Del Monte6.86K FollowersFollow5ShareSavePlay(7min)CommentsSummaryFirst Trust BuyWrite Income ETF earns a "Buy" rating for its active management and strong performance relative to peer strategies.FTHI offers diversified equity exposure across market caps and regions, with sector allocations differing significantly from benchmarks.The fund employs a covered call strategy on the S&P 500 to generate income for the fund, yielding 8.99% over the last twelve months.Active sector rotation and security selection have driven outperformance versus benchmarks in recent months. Total returns may be capped due to the covered call strategy. yavorskiy/iStock via Getty Images The First Trust BuyWrite Income ETF (FTHI) is an actively managed exchange-traded fund designed to provide investors with broad market exposure across all market capitalizations while generating income through a strategic covered call options strategy on the S&P 500This article was written byMichael Del Monte6.86K FollowersFollowMonte Independent Investment Research: Michael Del Monte is a buy-side equity analyst with expertise in the technology, energy, industrials, and materials sectors. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industries that include O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary.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.