Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
First Trust Hedged BuyWrite Income ETF (FTLB)
Investment Objective/Strategy - The Fund's investment objective is to provide current income. The Fund will pursue its objective by investing in equity securities listed on U.S. exchanges of all market capitalizations and by utilizing an "option strategy" consisting of buying U.S. exchange-traded put options on the Standard & Poor's 500 Index (the "Index") and writing (selling) U.S. exchange-traded covered call options on the Index. Under normal market conditions, the Fund invests primarily in equity securities listed on U.S. exchanges of all market capitalizations. The Fund will also employ an option strategy in which it will write U.S. exchange-traded covered call options on the Index in order to seek additional cash flow in the form of premiums on the options. A premium is the income received by an investor who sells an option contract to another party. These premiums may be distributed to shareholders on a monthly basis or used to purchase U.S. exchange-traded put options on the Index that seek to provide the Fund with downside protection and which are expected to reduce the Fund's price sensitivity to declining markets. The market value of the option strategy may be up to 20% of the Fund's overall net asset value.
There can be no assurance that the Fund's investment objectives will be achieved.
Fund Overview
Fund TypeEquity Income
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBrown Brothers Harriman
Fiscal Year-End09/30
Inception Price$19.93
Inception NAV$19.93
Expense Ratio0.85%
Current Fund Data (as of 1/28/2022)
Closing NAV1$21.36
Closing Market Price2$21.34
Bid/Ask Midpoint$21.36
Bid/Ask Premium0.00%
30-Day Median Bid/Ask Spread (as of 1/27/2022)30.32%
Total Net Assets$10,681,927
Outstanding Shares500,002
Daily Volume3,750
Average 30-Day Daily Volume8,072
Closing Market Price 52-Week High/Low$22.37 / $20.42
Closing NAV 52-Week High/Low$22.38 / $20.38
Number of Holdings (excluding cash)243
Top Holdings (as of 1/27/2022)*
Holding Percent
Apple Inc. 4.55%
Microsoft Corporation 4.06%
Wells Fargo & Company 2.80%
The PNC Financial Services Group, Inc. 2.63%
Amazon.com, Inc. 2.06%
General Electric Company 1.94%
U.S. Bancorp 1.77%
Lumen Technologies Inc. 1.63%
Annaly Capital Management, Inc. 1.59%
Alphabet Inc. (Class A) 1.46%

* Excluding cash.  Holdings are subject to change.

NAV History (Since Inception)
Past performance is not indicative of future results.
Distribution Information
Dividend per Share Amt (as of 1/29/2022)4$0.0550
30-Day SEC Yield (as of 12/31/2021)50.86%
12-Month Distribution Rate (as of 12/31/2021)63.06%
Distribution Rate (as of 12/31/2021)73.06%
Fund Characteristics (as of 12/31/2021)8
Maximum Market Cap.$2,913,284
Median Market Cap.$13,101
Minimum Market Cap.$694
Price/Cash Flow8.83
Market cap and price ratio statistics are for the equity portion of the fund and exclude cash and options.
Portfolio Options Information (as of 12/31/2021)
% Portfolio with Call Options68.66%
Average Time Until Expiration of Calls43 Days
Average Call Moneyness (ITM)2.18%
% Portfolio with Put Options44.14%
Average Time Until Expiration of Puts148 Days
Average Put Moneyness (OTM)17.65%
Moneyness is how much an option contract's strike price is in-the-money (ITM) or out-of-the-money (OTM) expressed as a percentage of the price of the option contract's underlying asset.
Bid/Ask Premium/Discount (as of 1/28/2022)
  2021 Q1 2022 Q2 2022 Q3 2022
Days Traded at Premium 129 14 --- ---
Days Traded at Discount 123 5 --- ---
Top Sector Exposure (as of 1/27/2022)
Financials 21.17%
Health Care 17.30%
Information Technology 12.50%
Energy 12.03%
Materials 9.74%
Consumer Discretionary 8.69%
Communication Services 7.55%
Industrials 5.47%
Consumer Staples 3.21%
Utilities 0.81%
Real Estate 0.78%
Hypothetical Growth of $10,000 Since Inception (as of 1/27/2022) *

Month End Performance (as of 12/31/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 2.82% 9.99% 9.99% 5.29% 3.67% N/A 4.26%
After Tax Held 2.49% 8.60% 8.60% 3.95% 2.37% N/A 2.88%
After Tax Sold 1.67% 5.88% 5.88% 3.48% 2.24% N/A 2.66%
Market Price 2.91% 10.41% 10.41% 5.34% 3.70% N/A 4.29%
Index Performance **
CBOE S&P 500 95-110 Collar IndexSM 6.74% 17.67% 17.67% 20.24% 15.94% N/A 11.08%
S&P 500 Index 11.03% 28.71% 28.71% 26.07% 18.47% N/A 14.98%
Quarter End Performance (as of 12/31/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund Performance *
Net Asset Value (NAV) 2.82% 9.99% 9.99% 5.29% 3.67% N/A 4.26%
After Tax Held 2.49% 8.60% 8.60% 3.95% 2.37% N/A 2.88%
After Tax Sold 1.67% 5.88% 5.88% 3.48% 2.24% N/A 2.66%
Market Price 2.91% 10.41% 10.41% 5.34% 3.70% N/A 4.29%
Index Performance **
CBOE S&P 500 95-110 Collar IndexSM 6.74% 17.67% 17.67% 20.24% 15.94% N/A 11.08%
S&P 500 Index 11.03% 28.71% 28.71% 26.07% 18.47% N/A 14.98%
3-Year Statistics (as of 12/31/2021)
  Standard Deviation Alpha Beta Sharpe Ratio Correlation
FTLB 9.10% -5.28 0.54 0.50 0.67
CBOE S&P 500 95-110 Collar IndexSM 11.40% --- 1.00 1.59 1.00
Standard Deviation is a measure of price variability (risk). Alpha is an indication of how much an investment outperforms or underperforms on a risk-adjusted basis relative to its benchmark.Beta is a measure of price variability relative to the market. Sharpe Ratio is a measure of excess reward per unit of volatility. Correlation is a measure of the similarity of performance.

*Performance data quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares when sold or redeemed, may be worth more or less than their original cost.

After Tax Held returns represent return after taxes on distributions. Assumes shares have not been sold. After Tax Sold returns represent the return after taxes on distributions and the sale of fund shares. Returns do not represent the returns you would receive if you traded shares at other times. Market Price returns are determined by using the midpoint of the national best bid offer price ("NBBO") as of the time that the fund's NAV is calculated. Returns are average annualized total returns, except those for periods of less than one year, which are cumulative.

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.

**Indexes do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown. Indexes are unmanaged and an investor cannot invest directly in an index.

CBOE S&P 500 95-110 Collar IndexSM - The Index is a benchmark index designed to provide investors with insights as to how one might protect an investment in S&P 500 stocks against market declines at a reduced cost. This strategy accepts a ceiling or cap on S&P 500 gains in return for a floor on S&P 500 losses by holding the stocks in the S&P 500 Index, buying three-month S&P 500 put options to protect this S&P 500 portfolio from market decreases and selling one-month S&P 500 call options to help finance the cost of the put options.

S&P 500 Index - The Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance.

1 The NAV represents the fund's net assets (assets less liabilities) divided by the fund's outstanding shares .
2 Fund shares are purchased and sold on an exchange at their market price rather than net asset value (NAV), which may cause the shares to trade at a price greater than NAV (premium) or less than NAV (discount).
3 The median bid-ask spread is calculated by identifying the national best bid and national best offer ("NBBO") for the fund as of the end of each 10 second interval during each trading day of the last 30 calendar days and dividing the difference between each such bid and offer by the midpoint of the NBBO. The median of those values is identified and that value is expressed as a percentage rounded to the nearest hundredth.
4 Most recent distribution paid or declared to today's date. Subject to change in the future. There is no guarantee that the fund will declare dividends.
5 The 30-day SEC yield is calculated by dividing the net investment income per share earned during the most recent 30-day period by the maximum offering price per share on the last day of the period and includes the effects of fee waivers and expense reimbursements, if applicable.
6 12-Month Distribution Rate is calculated by dividing the sum of the fund's trailing 12-month ordinary distributions paid or declared by the NAV price. Distribution rates may vary.
7 Distribution Rate is calculated by dividing the fund's most recent ordinary distribution paid or declared, on an annualized basis, by the NAV price. Distribution rates may vary.
8 All market capitalization numbers are in USD$ Millions.
9 Inception Date is 1/6/2014

You should consider the fund's investment objectives, risks, and charges and expenses carefully before investing. You can download a prospectus or summary prospectus, or contact First Trust Portfolios L.P. at 1-800-621-1675 to request a prospectus or summary prospectus which contains this and other information about the fund. The prospectus or summary prospectus should be read carefully before investing.

Risk Considerations

Investors buying or selling fund shares on the secondary market may incur customary brokerage commissions. Market prices may differ to some degree from the net asset value of the shares. Investors who sell fund shares may receive less than the share's net asset value. Shares may be sold throughout the day on the exchange through any brokerage account. However, unlike mutual funds, shares may only be redeemed directly from a fund by authorized participants in very large creation/redemption units. If a fund's authorized participants are unable to proceed with creation/redemption orders and no other authorized participant is able to step forward to create or redeem, fund shares may trade at a discount to a fund's net asset value and possibly face delisting.

A fund's shares will change in value, and you could lose money by investing in a fund. One of the principal risks of investing in a fund is market risk. Market risk is the risk that a particular stock owned by a fund, fund shares or stocks in general may fall in value. There can be no assurance that a fund's investment objective will be achieved. The outbreak of the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses for investors. While the development of vaccines has slowed the spread of the virus and allowed for the resumption of "reasonably" normal business activity in the United States, many countries continue to impose lockdown measures in an attempt to slow the spread. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease.

In managing a fund's investment portfolio, the portfolio managers will apply investment techniques and risk analyses that may not have the desired result.

A fund may be subject to the risk that a counterparty will not fulfill its obligations which may result in significant financial loss to a fund.

A fund's covered call strategy may limit its ability to distribute dividends eligible for treatment as qualified dividend income and to distribute dividends eligible for the dividends-received deduction for corporate shareholders.

Changes in currency exchange rates and the relative value of non-US currencies may affect the value of a fund's investments and the value of a fund's shares.

As the use of Internet technology has become more prevalent in the course of business, funds have become more susceptible to potential operational risks through breaches in cyber security.

Depositary receipts may be less liquid than the underlying shares in their primary trading market.

The use of derivatives, including options can lead to losses because of adverse movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of the derivatives.

A fund may be a constituent of one or more indices which could greatly affect a fund's trading activity, size and volatility.

As inflation increases, the present value of the Fund's assets and distributions may decline.

Certain fund investments may be subject to restrictions on resale, trade over-the-counter or in limited volume, or lack an active trading market. Illiquid securities may trade at a discount and may be subject to wide fluctuations in market value.

Securities of non-U.S. issuers are subject to additional risks, including currency fluctuations, political risks, withholding, the lack of adequate financial information, and exchange control restrictions impacting non-U.S. issuers.

A fund and a fund's advisor may seek to reduce various operational risks through controls and procedures, but it is not possible to completely protect against such risks.

High portfolio turnover may result in higher levels of transaction costs and may generate greater tax liabilities for shareholders.

A fund with significant exposure to a single asset class, country, region, industry, or sector may be more affected by an adverse economic or political development than a broadly diversified fund.

Securities of small- and mid-capitalization companies may experience greater price volatility and be less liquid than larger, more established companies.

If, in any year, a fund which intends to qualify as a Registered Investment Company (RIC) under the applicable tax laws fails to do so, it would be taxed as an ordinary corporation.

Trading on the exchange may be halted due to market conditions or other reasons. There can be no assurance that the requirements to maintain the listing of a fund on the exchange will continue to be met or be unchanged.

Portfolio holdings that are valued using techniques other than market quotations may be subject to greater fluctuation in their valuations from one day to the next than if market quotations were used.

First Trust Advisors L.P. is the adviser to the fund. First Trust Advisors L.P. is an affiliate of First Trust Portfolios L.P., the fund’s distributor.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2022 All rights reserved.