FFA - FFA: A Covered Call Fund Trading At An Interesting Discount
2024-04-30 12:37:41 ET
Summary
- The First Trust Enhanced Equity Income Fund is a closed-end fund that utilizes a covered call strategy to generate extra income.
- FFA has a well-diversified portfolio with a focus on value stocks and an overweight position in the technology sector.
- Despite mixed short-term performance, FFA has consistently outperformed its benchmark and peer group over the long run.
We cannot ignore the fact that a covered call strategy seems appealing at this juncture, after a strong rally that lifted stock valuations amid stubborn inflation and uncertainties over interest rates trajectory....
FFA: A Covered Call Fund Trading At An Interesting Discount