At a glance
FTHI charges 0.75% a year, above the 0.44% average of the 6 funds most like it (the most expensive of 7). It has $2.35B in assets, the 4th largest of that group; it paid 9.78% of its price in distributions over the past 12 months, monthly. Over the past year it returned +8.9% with distributions reinvested (S&P 500: +11.5%), 5th of those 7 funds; over three years it returned +16.5% a year. At its worst it fell 32.6% in the 2020 crash (S&P 500: 33.7%) and 16.7% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 13 months and 8 months after the lows. Its ten largest positions make up 32.3% of the fund, out of 168 in all.
The short version
First Trust BuyWrite Income ETF (FTHI) is an actively managed fund. It holds about 168 mostly US stocks picked to favor higher dividend payers, and it sells call options on the S&P 500 Index to collect extra income, which it pays out monthly. Its trailing 12-month yield was 9.78% as of October 27, 2026. Its 0.75% expense ratio is well above the 0.44% average for similar options-income funds.
Price history
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FTHI +8.9% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FTHI official prospectus, to Dec 31, 2025 | — | +11.01% | — | +11.52% | +8.20% | +7.59% |
| FTHI price data to Oct 27, 2026 | +7.7% | +8.9% | +16.5% | +10.7% | +8.8% | +7.8% |
- Over the year to Oct 27, 2026, FTHI returned +8.9%, 5th of 7 among similar funds.
- Its 5-year annualized return was +10.7% and its 10-year +8.8%.
- In the 2020 COVID crash it fell 32.6% and regained its old high 13.3 months after the low.
- Its worst full calendar year was 2018 (-9.7%); its best was 2023 (+20.8%).
- The deepest fall in its price history was 32.6% (Feb 19, 2020 to Mar 23, 2020), recovered by May 3, 2021.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +7.7% | — |
| 2025 | +11.8% | +11.01% |
| 2024 | +19.0% | +18.98% |
| 2023 | +20.8% | +19.98% |
| 2022 | -4.3% | -3.90% |
| 2021 | +13.9% | +13.28% |
| 2020 | -7.1% | -6.54% |
| 2019 | +18.1% | +17.45% |
| 2018 | -9.7% | -9.12% |
| 2017 | +14.4% | +13.92% |
| 2016 | +11.4% | +12.19% |
| 2015 | +2.6% | — |
| 2014 | +6.7% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 32.6% over that stretch · deepest drop along the way 32.6%, back to its old high 13.3 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 11.5% over that stretch · deepest drop along the way 16.7%, back to its old high 8.4 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.7700 | |
| 2025 | $2.2200 | +10.4% |
| 2024 | $2.0100 | +9.8% |
| 2023 | $1.8300 | +4.0% |
| 2022 | $1.7600 | +83.3% |
| 2021 | $0.9600 | 0.0% |
| 2020 | $0.9600 | 0.0% |
| 2019 | $0.9600 | 0.0% |
| 2018 | $0.9600 | +2.9% |
| 2017 | $0.9325 | -8.1% |
| 2016 | $1.0150 | +1.5% |
| 2015 | $1.0000 | +22.9% |
| 2014 | $0.8140 |
What's inside
As of Jun 30, 2026, the fund held 168 securities; the ten largest made up 32.3% of assets. It also reported 4.18% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.
| Holding | Weight | |
|---|---|---|
| APPLE INC | 6.99% | |
| NVIDIA CORP | 5.41% | |
| GE VERNOVA INC | 3.00% | |
| NEBIUS GROUP NV | 2.69% | |
| ASML HOLDING NV | 2.61% | |
| JP MORGAN CHASE & COMPANY | 2.55% | |
| AMAZON.COM INC | 2.35% | |
| BANK OF AMERICA CORP | 2.26% | |
| COSTCO WHOLESALE CORP | 2.25% | |
| BROADCOM INC | 2.19% | |
| ALPHABET INC Class A | 2.14% | |
| DELL TECHNOLOGIES INC | 1.99% | |
| MICROSOFT CORP | 1.87% | |
| ALPHABET INC Class C | 1.79% | |
| ORACLE CORP | 1.54% |
By country
United States 81.8%Netherlands 5.78%United Kingdom 3.23%Canada 2.18%Ireland 1.29%By asset type
Stocks 97.09%By sector
Sectors of the companies held, for the 67% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $229.4M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +3.85%, +1.23%, +0.98%.
How it works
FTHI does not track an index. Its managers use a mathematical optimization process that leans toward common stocks with higher dividends. The fund buys only securities listed on US exchanges. These can include foreign companies listed in the US or held as depositary receipts, which are US-traded certificates that stand for shares of a foreign company. It can also own master limited partnerships and real estate investment trusts. The managers rebalance when they see fit, and the prospectus filed April 30, 2026 reported 58% portfolio turnover.
The income comes from selling ("writing") call options on the S&P 500 Index. A call buyer pays the fund a fee, called a premium, for any index gain above a set level, the strike price, until the option expires. FTHI staggers its calls across expiration dates less than a year out, with strikes at or slightly above the index level. The calls usually cover 25% to 75% of the fund's value. On that portion, the fund gives up gains above the strike. As of June 30, 2026, its written calls expired in July and August 2026, with strikes from 7,350 to 7,600.
The prospectus calls these options technically "uncovered." That's because the fund owns a basket of stocks, not the index itself. Its stocks can move differently from the S&P 500, so the hedge is imperfect.
What it really costs
- FTHI charges 0.75% a year, versus an average of 0.44% for the similar funds below (7th of 7, cheapest first).
Structure and tax notes
- Generates much of its income from selling options (directly or through notes). That income is usually taxed as ordinary income rather than as qualified dividends, and the strategy gives up some upside in strong markets.
In a retirement portfolio
FTHI is built to turn a stock portfolio into a high, monthly cash payout by selling S&P 500 call options.
FTHI can add a large stream of monthly cash. Its trailing 12-month yield was 9.78% as of October 27, 2026. Most of that income is option premium, which is usually taxed as ordinary income. The prospectus warns that payouts can exceed what the fund earns and may be cut. The fund still falls with stocks. In the 2020 COVID crash it lost 32.6% between February 19 and March 23, 2020, and it took 13.3 months to recover. In 2022 it fell 16.7% and recovered in 8.4 months. Its worst calendar year was 2018, at -9.12%. It launched in 2014, so it has no record from 2008. Selling shares after a drop like 2020's would lock in losses, and a cash or bond reserve can reduce that need. Costs are 0.75% a year. Past results don't predict future ones, and a plan should weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want monthly cash from a stock portfolio. The trailing yield was 9.78% as of October 27, 2026.
- People willing to give up some S&P 500 upside in exchange for option premiums. Its one-year beta, a measure of how much it moves with the market, was 0.67.
- Holders using IRAs or other tax-advantaged accounts, where option income being taxed as ordinary income matters less.
Look elsewhere if
- Cost-focused investors: its 0.75% expense ratio was the highest of seven comparable funds. GPIX, for example, charges 0.29%.
- Investors seeking full stock-market growth: the calls cap gains above their strike prices, which can hold the fund back in strong rallies.
- Anyone expecting crash protection: FTHI fell 32.6% in early 2020 and needed 13.3 months to recover.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FTHI this fund | — | 0.75% | $2.35B | +8.9% | +16.5% |
| SPYH NEOS S&P 500 Hedged Equity Income ETF | 46% | 0.68% | $32.3M | +10.2% | — |
| XRMI Global X S&P 500 Risk Managed Income ETF | 46% | 0.6% | $49.9M | +8.7% | +10.2% |
| XYLG Global X S&P 500 Covered Call & Growth ETF | 46% | 0.35% | $64.1M | +15.0% | +20.1% |
| GPIX S&P 500 Core Premium Income ETF | 45% | 0.29% | $4.72B | +14.7% | +22.6% |
| JEPQ JPMorgan NASDAQ Equity Premium Income ETF | 31% | 0.35% | $40.66B | +6.9% | +17.9% |
| JEPI JPMorgan Equity Premium Income Fund | 22% | 0.35% | $44.75B | +9.3% | +10.7% |
Questions investors ask
Does FTHI pay monthly dividends?
Yes. FTHI pays distributions monthly. Over the 12 months to October 27, 2026, it paid $2.31 per share, a trailing yield of 9.78%. Much of that money comes from selling S&P 500 call options rather than stock dividends, so it is usually taxed as ordinary income. The prospectus warns that distributions may exceed the fund's income and could be reduced.
What's the difference between FTHI and GPIX?
Both hold stocks and sell S&P 500 call options, and about 45% of their holdings overlap. GPIX costs much less: 0.29% a year versus 0.75% for FTHI. As of October 27, 2026, GPIX returned 14.7% over one year and 22.6% a year over three years, compared with 8.9% and 16.5% for FTHI. GPIX was also larger, with about $4.7 billion in net assets versus $2.35 billion as of June 30, 2026.
Is FTHI good for retirement income?
It can provide high monthly income, but there are trade-offs. Its trailing yield was 9.78% as of October 27, 2026. However, it charges 0.75% a year, it gives up some upside in strong markets, and it still falls with stocks. It lost 32.6% in the 2020 crash and took 13.3 months to recover. Option income is usually taxed as ordinary income, which matters in taxable accounts.
What stocks does FTHI hold?
As of June 30, 2026, FTHI held 168 stocks. The largest were Apple (7.0%), Nvidia (5.4%), GE Vernova (3.0%), Nebius Group (2.7%), ASML (2.6%) and JPMorgan Chase (2.6%). The top 10 made up 32.3% of assets. About 82% was in US companies, with the Netherlands next at about 6%. The fund also had written call options on the S&P 500 Index.
How has FTHI performed over 10 years?
FTHI returned 8.2% a year on average over the 10 years to December 31, 2025, according to its prospectus. Its five-year average was 11.52% and its one-year return was 11.01%. Based on price, its 10-year annualized return was 8.8% as of October 27, 2026. It lost money in 2018 (-9.12%), 2020 (-6.54%) and 2022 (-3.9%). Past results don't predict future returns.