At a glance
FTQI charges 0.75% a year, above the 0.58% average of the 8 funds most like it (the 8th cheapest of 9). It has $926.0M in assets, the 4th largest of that group; it paid 12.4% of its price in distributions over the past 12 months, monthly. Over the past year it returned +19.4% with distributions reinvested (S&P 500: +11.5%), the best of those 9 funds; over three years it returned +20.3% a year. Its ten largest positions make up 40.8% of the fund, out of 176 in all.
The short version
First Trust Nasdaq BuyWrite Income ETF (FTQI) is an actively managed fund. It holds mostly Nasdaq stocks, led by Apple, AMD and Nvidia, and sells call options on the Nasdaq-100 Index to pay monthly income. Its trailing yield was 12.4% as of October 27, 2026. Its calls cover 50% to 100% of assets, which can leave room for some upside, but its 0.75% expense ratio is above the 0.58% average for similar funds.
Price history
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FTQI +19.4% 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 | |
|---|---|---|---|---|---|---|
| FTQI official prospectus, to Dec 31, 2025 | — | +12.53% | — | +10.53% | +7.01% | +6.36% |
| FTQI price data to Oct 27, 2026 | +17.1% | +19.4% | +20.3% | — | — | +14.9% |
- Over the year to Oct 27, 2026, FTQI returned +19.4%, 1st of 9 among similar funds.
- Its worst full calendar year was 2025 (+14.1%); its best was 2023 (+23.6%).
- The deepest fall in its price history was 19.4% (Feb 14, 2025 to Apr 8, 2025), recovered by Aug 7, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +17.1% | — |
| 2025 | +14.1% | +12.53% |
| 2024 | +18.1% | +17.89% |
| 2023 | +23.6% | +24.38% |
| 2022 | — | -9.09% |
| 2021 | — | +9.99% |
| 2020 | — | -6.45% |
| 2019 | — | +13.44% |
| 2018 | — | -8.98% |
| 2017 | — | +12.69% |
| 2016 | — | +9.67% |
| 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 | Not in the price data, which starts May 12, 2022 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Not in the price data, which starts May 12, 2022 |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $2.1100 | |
| 2025 | $2.6400 | +10.0% |
| 2024 | $2.4000 | +5.3% |
| 2023 | $2.2800 |
What's inside
As of Jun 30, 2026, the fund held 176 securities; the ten largest made up 40.82% of assets. It also reported 6.02% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.
| Holding | Weight | |
|---|---|---|
| APPLE INC | 7.82% | |
| ADVANCED MICRO DEVICES INC | 5.40% | |
| NVIDIA CORP | 5.33% | |
| AMAZON.COM INC | 3.87% | |
| TESLA INC | 3.39% | |
| CISCO SYSTEMS INC | 3.32% | |
| COSTCO WHOLESALE CORP | 3.16% | |
| WALMART INC | 3.03% | |
| META PLATFORMS INC | 2.77% | |
| MICRON TECHNOLOGY INC | 2.74% | |
| SEAGATE TECHNOLOGY HOLDINGS PLC | 2.33% | |
| ALPHABET INC Class A | 2.10% | |
| ALPHABET INC Class C | 2.09% | |
| BROADCOM INC | 2.02% | |
| APPLIED MATERIALS INC | 1.78% |
By country
United States 90.15%Ireland 2.9%Singapore 1%United Kingdom 0.91%Netherlands 0.61%By asset type
Stocks 97.12%By sector
Sectors of the companies held, for the 69.1% 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 $65.4M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +7.65%, +4.00%, +1.78%.
How it works
FTQI is actively managed by First Trust and does not track an index. Its goal is current income. At least 80% of net assets go into stocks in the Nasdaq Composite Index. The managers choose and weight them based on trading liquidity, company size, share price, sector and how each adds to risk and return. The aim is returns that move reasonably closely with the Nasdaq-100 Index over a full market cycle. As of June 30, 2026, Apple (7.8%), AMD (5.4%) and Nvidia (5.3%) led its 176 holdings.
The fund also sells (writes) exchange-traded call options on the Nasdaq-100. A call option gives the buyer the right to the index's gains above a set level, called the strike price. In return, the fund collects a payment called a premium. These premiums are the main source of its monthly payouts. The calls cover 50% to 100% of assets, expire within a year, are set at or above the index level and settle in cash. On the covered portion, the fund gives up any gains above the strike. It may also purchase calls with higher strikes to keep some upside.
The fund owns individual stocks, not the index itself, so its calls are technically "uncovered." In theory, losses on uncovered calls have no limit, but the stock holdings act as a partial hedge. Portfolio turnover was 59%, and the prospectus warns it can top 100% in volatile markets.
What it really costs
- FTQI charges 0.75% a year, versus an average of 0.58% for the similar funds below (8th of 9, 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
Its main purpose is monthly income from selling Nasdaq-100 call options, and its trailing yield was 12.4% as of October 27, 2026.
FTQI could add high monthly cash flow, but its stocks still drive its swings. It launched in 2014, after the 2008 crisis. Its prospectus shows losses of 8.98% in 2018, 6.45% in 2020 and 9.09% in 2022, the worst calendar year it reports. Its worst quarter was a 13.12% drop in early 2020. From February 14 to April 8, 2025, the fund fell 19.4%, then recovered by August 7, about four months later. A retiree who sells shares in a stretch like that locks in lower prices, and the fund may cut its payouts if income falls short.
The yield was 12.4% for the 12 months to October 27, 2026, paid monthly. Option income is usually taxed as ordinary income. The 0.75% expense ratio is higher than the 0.58% average for similar funds. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income seekers who want monthly payouts from Nasdaq stocks; the trailing yield was 12.4% as of October 27, 2026.
- Investors who want income plus some Nasdaq-100 upside, since its calls cover 50% to 100% of assets and it may purchase higher-strike calls.
- Those using IRAs or other tax-advantaged accounts, where option income usually taxed as ordinary income creates less tax drag.
Look elsewhere if
- Cost-focused investors: its 0.75% expense ratio ranks 8th of 9 similar funds, compared with 0.29% for GPIQ and 0.35% for QYLG.
- Those wanting full Nasdaq-100 growth, because selling calls gives up gains above the strike price on the covered portion.
- Anyone who needs a steady share price: it lost 9.09% in 2022 and fell 19.4% between February and April 2025.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FTQI this fund | — | 0.75% | $926.0M | +19.4% | +20.3% |
| QHDG Innovator Hedged Nasdaq-100 ETF | 53% | 0.79% | $3.0M | +1.1% | — |
| QYLD Global X NASDAQ 100 Covered Call ETF | 52% | 0.6% | $8.09B | +18.9% | +17.4% |
| QRMI Global X NASDAQ 100 Risk Managed Income ETF | 52% | 0.6% | $14.3M | +5.1% | +9.2% |
| QYLG Global X Nasdaq 100 Covered Call & Growth E… | 52% | 0.35% | $158.3M | +17.3% | +23.1% |
| QQQH NEOS Nasdaq 100 Hedged Equity Income ETF | 52% | 0.68% | $389.0M | +7.4% | — |
| QQQI NEOS Nasdaq 100 High Income ETF | 52% | 0.68% | $13.11B | +5.8% | — |
| SEPQ STF Tactical Growth & Income ETF | 52% | 0.65% | $80.1M | +14.2% | +24.1% |
Questions investors ask
Does FTQI pay monthly dividends?
Yes. FTQI pays distributions every month. Over the 12 months to October 27, 2026, it paid $2.74 per share, a trailing yield of 12.4%. Most of that money comes from premiums on the Nasdaq-100 call options it sells, not from stock dividends. As a result, it is usually taxed as ordinary income rather than as qualified dividends. The fund does not target a set income level. Payouts can exceed its income and gains, or they can be cut.
What's the difference between FTQI and QYLD?
The main differences are cost, size and flexibility. Both hold Nasdaq stocks and sell Nasdaq-100 call options. FTQI is actively managed, writes calls on 50% to 100% of assets and may purchase higher-strike calls to keep some upside. QYLD charges 0.60% a year, compared with 0.75% for FTQI. QYLD had $8.1 billion in assets as of July 31, 2026; FTQI had $926 million as of June 30, 2026. Over the year to October 27, 2026, FTQI returned 19.4% and QYLD 18.9%.
Is FTQI good for retirement income?
It may suit retirees who want high monthly income and accept the trade-offs. The trailing yield was 12.4% as of October 27, 2026. The payouts don't protect the share price, though: the fund lost 9.09% in 2022 and fell 19.4% between February and April 2025. Selling calls gives up part of the gains in strong markets. Option income is usually taxed as ordinary income. And the 0.75% expense ratio is above the 0.58% average for similar funds.
How has FTQI performed over 10 years?
According to its prospectus, FTQI returned an average of 7.01% a year over the 10 years to December 31, 2025. The five-year average was 10.53% a year, and the one-year return was 12.53%. Since its 2014 launch, it averaged 6.36% a year. The record includes losing years: down 8.98% in 2018, 6.45% in 2020 and 9.09% in 2022. Its strongest year in that period was 2023, when it gained 24.38%.
Is FTQI a covered call ETF?
Not technically, though it works much like one. FTQI owns Nasdaq stocks and sells call options on the Nasdaq-100 Index, which is the classic buy-write approach. But it owns individual stocks, not the index itself, so its prospectus calls the options technically "uncovered." In theory, losses on uncovered calls have no limit. Its stock holdings, such as Apple, AMD and Nvidia, act as a hedge against that risk. The calls cover 50% to 100% of assets and are settled in cash.