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FTQIFirst Trust Nasdaq BuyWrite Income ETF

Get income12y track recordRanked #556 of 1,650 in this goal

Seeks to provide current income.

By First Trust · Launched 2014

Annual Cost

0.75%

#3,925 of 5,861 · average

Fund Size

$926M

#1,176 of 5,861 · large

Dividend YieldGoal

5.60%

Track Record

12 years

#1,138 of 5,861 · established

Performance

Total-return NAV · USD
Growth of $10,000
$11,999+20.0%

Total-return NAV, USD. Net of fund fees, before tax.

What's inside

How Beacon categorizes this fund

Asset class

Alternative

Strategy

Option income

What it actually holds

By weight

Concentration

Top 10 holdings = 41.7% of fundmoderately concentrated

Apple Inc.
7.8%
NVIDIA Corp.
7.5%
Amazon.com, Inc.
4.1%
Dreyfus Government Cash Management Funds
4.1%
Advanced Micro Devices Inc.
3.6%
Costco Wholesale Corporation
3.3%
Tesla Inc
3.2%
Broadcom Inc
2.9%
Cisco Systems, Inc.
2.6%
Netflix, Inc.
2.6%

Asset allocation

Stocks
94.0%
Cash
6.0%

Risk profile

Last 12 months · Sharpe & Sortino need 3+ years
Volatility (1Y)
11.3%Moderate

Year-on-year price swings

Max drawdown
-19.4%Moderate

Worst peak-to-trough loss

Sharpe (3Y)
0.88Decent risk-adjusted returns
Sortino (3Y)
1.27Good downside protection

Listing

Exchange
NASDAQ Global Select Market

Full fund details

Objective
Seeks to provide current income.
Strategy
Invests primarily in equity securities listed on U.S. exchanges and employs a buy-write option strategy by writing U.S. exchange-traded call options on the Nasdaq-100 Index. Aims to generate income from options premiums while investing at least 80% of net assets in Nasdaq Composite Index components.
Inception date
January 6, 2014
Fund family
First Trust

Our take

Structural notes on how this fund behaves. Read our guide on the 6 warning signs.

Covered call
Warning

The big yield isn't extra money

The headline distribution comes from selling call options, which caps the fund's upside. Across a full market cycle that trade costs more than it brings in — often 1 to 3 percentage points a year against just holding the index. Monthly payouts make the gap easy to miss on a return summary.

Sources: Israelov & Ndong, 'A Devil's Bargain: When Generating Income Undermines Investment Returns' (NDVR, 2023)

Educational analysis of structural product characteristics. Not investment advice. Always read the fund prospectus and consult a qualified advisor before investing. More

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Data updated on 2026-08-04