FTQI First Trust Nasdaq BuyWrite Fund

About this ETF

The First Trust Nasdaq BuyWrite Fund is an exchange-traded fund (ETF) specifically designed to provide investment results corresponding to the performance of a covered call strategy on the Nasdaq-100 Index. This fund aims to generate income and reduce volatility by writing (selling) call options on the index, thus capturing option premiums. It is primarily utilized by income-seeking investors who prefer a strategy that combines equity exposure with the income-generating potential of options writing. The chief characteristic of the First Trust Nasdaq BuyWrite Fund is its focus on the tech-centric Nasdaq-100 Index, which comprises the top 100 non-financial companies listed on the Nasdaq Stock Market. The fund’s strategy involves maintaining positions in the underlying securities and systematically writing calls against the portfolio. This dual approach seeks to alleviate some downside risk while preserving potential upside gains. The fund plays a unique role in the market by offering an alternative risk-return profile compared to traditional equities and fixed-income investments, catering to those seeking enhanced yield in a low interest rate environment.