2024-01-31 05:36:05 ET
Summary
- First Trust Nasdaq BuyWrite Income ETF combines a stock portfolio with an index option overlay to generate additional cash flow.
- The buy-write strategy offers partial hedging against price declines and improved returns in flat or slightly bullish markets.
- FTQI's top holdings include Apple, Microsoft, Amazon, Meta Platforms, and Nvidia, with a diverse sector composition.
Buy-write strategies aren't new, but the ETF wrapper has certainly made for some interesting products that use the strategy as an overlay to otherwise basic market indices. One ETF that's been getting some good traction in its use of the approach is the First Trust Nasdaq BuyWrite Income ETF ( FTQI ). This ETF offers a unique investment strategy combining a stock portfolio with an index option overlay....
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For further details see:
FTQI: Buy-Writing The Nasdaq