First Trust Nasdaq BuyWriteome ETF company info

What does First Trust Nasdaq BuyWriteome ETF do?
First Trust Nasdaq BuyWrite Income ETF (NASDAQ:FTQI) focuses on investment strategies that involve buying stocks in the Nasdaq 100 index and selling call options on the same index to generate income. The operation hinges on a buy-write or "covered call" strategy, aiming to provide investors with investment income and potential for capital appreciation. The company’s primary objective is to offer a regular income stream to its shareholders through the option premiums it collects, alongside any dividends from its stock holdings. By employing this approach, First Trust Nasdaq BuyWrite Income ETF seeks to mitigate volatility and provide a more stable investment option relative to the broader market, aiming for consistent returns in various market conditions.
First Trust Nasdaq BuyWriteome ETF company media
Company Snapshot

Is First Trust Nasdaq BuyWriteome ETF a public or private company?

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Ownership
Public

How many people does First Trust Nasdaq BuyWriteome ETF employ?

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Employees
1,087

What sector is First Trust Nasdaq BuyWriteome ETF in?

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Sector
ETF

Where is the head office for First Trust Nasdaq BuyWriteome ETF?

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Head Office
Wheaton, United States

What year was First Trust Nasdaq BuyWriteome ETF founded?

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Year Founded
2014
What does First Trust Nasdaq BuyWriteome ETF specialise in?
/Exchange Traded Fund /Options Trading /Equity Exposure /Passive Management /Dividend Income /Risk Management

What are the products and/or services of First Trust Nasdaq BuyWriteome ETF?

Overview of First Trust Nasdaq BuyWriteome ETF offerings
Investing in equity securities listed on U.S. exchanges: The ETF primarily invests in stocks of companies listed on American stock exchanges, specifically focusing on those included in the Nasdaq-100 Index. The Nasdaq-100 Index includes 100 of the largest and non-financial companies listed on the Nasdaq Stock Market.
Utilizing a covered call option writing strategy: This strategy involves selling (writing) call options on the Nasdaq-100 Index. Call options give the buyer the right, but not the obligation, to purchase a security at a certain price (strike price) by a certain time (expiration date). By selling these call options, FTQI generates income from the premiums paid by the buyers.
Income generation: The primary goal of FTQI is to generate income for investors through the premiums received from selling covered calls.
Potential for capital appreciation: FTQI also holds stocks in the Nasdaq-100 Index, which provides the potential for capital appreciation if the stock prices increase.
Limited downside protection: The covered call writing strategy can limit the potential for capital appreciation from FTQI if the stock prices in the Nasdaq-100 Index rise significantly. This is because if the stock price goes above the strike price of the written call options, the option buyers will exercise their right to purchase the stock from FTQI at the lower strike price.
Potential for income regardless of market direction: Covered call writing can generate income even if the stock market goes down, as long as the underlying stocks don't decline by more than the premium received from selling the call options.