Nasdaq AMZN Amazon

As the global economy evolves, investors are always on the lookout for innovative companies that can offer high returns. One such company that's lately been generating a lot of buzz is Symbotic (NASDAQ: SYM), a cutting-edge robotics and automation company that's taking the logist

Wall Street is fired up about generative artificial intelligence (AI), a technology that uses simple prompts to automate the creation of media content like images and videos. Goldman Sachs says generative AI could add almost $7 trillion to the global economy over the next decade

It wasn't too long ago that cryptocurrencies were one of the hottest investments, with the media filled with stories of people getting rich seemingly overnight. However, excitement in the industry has cooled considerably. Investors have become wary of its volatility, with prices

It wasn't too long ago that cryptocurrencies were one of the hottest investments, with the media filled with stories of people getting rich seemingly overnight. However, excitement in the industry has cooled considerably. Investors have become wary of its volatility, with prices

It's been an interesting couple of years to be an investor. After suffering the worst stock market plunge in over a decade, the major market indexes have come roaring back, each gaining more than 20% from their respective lows. This has many market watchers declaring the arrival

Even long-term investors have to reevaluate their positions and occasionally offload some companies' shares. But some corporations look solid enough that they are hard to part ways with regardless of the economic environment. That depends on each investor's preference, of course.

Inflation has cooled dramatically over the past year, and consumers are spending money more freely. U.S. economic growth accelerated in the second quarter due in part to a modest uptick in consumer purchases, and that momentum seems to be intensifying in the current quarter. Reta

Inflation has cooled dramatically over the past year, and consumers are spending money more freely. U.S. economic growth accelerated in the second quarter due in part to a modest uptick in consumer purchases, and that momentum seems to be intensifying in the current quarter. Reta

Investors are increasingly interested in dividend ETFs with high dividend yields that pay monthly, and the First Trust BuyWrite Income ETF ( NASDAQ:FTHI) is one such option, with a monthly payout and an 8.5% dividend yield. However, FTHI may not be the best choice for income investors. Let's see why. What is FTHI ETF’s Strategy? According to First Trust, FTHI looks to generate income for its investors “by investing in equity securities listed on U.S. exchanges of all market capitalizations and by utilizing an ‘option strategy’ consisting of writing (selling) U.S. exchange-traded covered call options on the Standard & Poor's 500 Index (the "Index").” This “option strategy” entails FTHI writing “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 that may be distributed to shareholders on a monthly basis.” This strategy is a great way to generate income, but investors should be aware that there is a tradeoff. By selling these covered calls, FTHI potentially leaves upside on the table. Selling covered calls can cap the upside from capital appreciation because if the price of the underlying stock rises beyond the strike price, FTHI investors forgo these additional gains. To its credit, fund sponsor First Trust makes this clear right from the get-go, stating that “the fund’s primary investment objective is to provide current income,” while capital appreciation is its “secondary objective.”  FTHI's Portfolio FTHI has a diverse and well-rounded portfolio. The income-oriented ETF holds 225 positions, and its top 10 holdings account for just 30.6% of the fund. You can check out an overview of FTHI’s top 10 holdings below using TipRanks’ holdings tool. As you can see, the fund’s holdings don’t look all that different from your typical broad market or S&P 500 fund ( SPX ), with mega-cap stocks like Apple ( NASDAQ:AAPL ), Microsoft ( NASDAQ:MSFT ), Amazon ( NASDAQ:AMZN ), Nvidia ( NASDAQ:NVDA ) and Alphabet ( NASDAQ:GOOG ) ( NASDAQ:GOOGL ) populating the top 10.  Is FTHI Stock a Buy, According to Analysts?  Turning to Wall Street, FTHI has a Moderate Buy consensus rating, as 174 of analyst ratings are Buys, 49 are Holds, and three are Sells. At $23.95, the average FTHI stock price target implies 16.10% upside potential. An Abundance of Alternatives FTHI’s main drawback is its steep expense ratio of 0.85%. This is an actively-managed ETF that runs a fairly complex strategy, so it’s understandable that the fees will be more expensive than those of a typical index fund.  However, FTHI’s 0.85% expense ratio is also considerably higher than many of its actively-managed peers that employ similar strategies, pay dividends on a monthly basis, and sport high dividend yields. For example, the JPMorgan Equity Premium Income ETF ( NYSEARCA:JEPI) , the largest and most popular ETF in this space, has a much lower expense ratio of 0.35%. Similarly, the JPMorgan Nasdaq Equity Premium Income ETF ( NASDAQ:JEPQ) also has an expense ratio of 0.35%. Even the NEOS S&P 500 High Income ETF ( BATS:SPYI) , a newer entrant into the space, which itself has a relatively high expense ratio of 0.68%, is comparatively cheaper than FTHI.  On the surface, the 0.85% expense ratio means that investors pay $85 in fees and expenses on a $10,000 investment in year one, which might not sound too bad in and of itself. But these expenses compound over time. Over the course of 10 years, assuming that the fee stays where it is now and that the fund returns 5% per year, this same investor would pay an astounding $1,049 in fees or more than one-tenth of their initial investment. For comparison, an investor in JEPI or JEPQ would pay a far more reasonable $443 in fees over the course of 10 years. Furthermore, in addition to having lower expense ratios, these three alternatives currently feature higher yields than FTHI’s current dividend yield of 8.5%. JEPI's dividend yield is 10.2%, while JEPQ currently yields 12%. SPYI’s dividend yield stands at 10.9%. Below, you’ll find a comparison of FTHI and these alternatives from TipRanks’ ETF Comparison Tool, which allows investors to compare up to 20 ETFs based on a wide variety of criteria.  Past Performance FTHI's performance in recent years has been decent, but it hasn't really done enough to justify its high fees. From the beginning of the year to the end of July, the fund's total return was a solid 15.1%. Over the past year, FTHI's total return was 9.5%, and its three-year annualized return was 9.2%, which are respectable returns. However, over the longer term, FTHI's performance looks subpar, with a five-year annualized total return of just 4.5%. Keep in mind that these total returns take FTHI's dividend payments into account, so the performance has been pretty mediocre even with the dividend. It's difficult to compare FTHI to its aforementioned peers, as JEPQ and SPYI are fairly new ETFs, and JEPI has only been around for three years, but we can still compare it to JEPI over that time frame. FTHI leads JEPI both year-to-date and over the past year (with respective total returns of 15.1% and 9.5% versus JEPI's 7.3% and 8.1%) but JEPI beats FTHI over a three-year time frame, with a superior total return of 11.5% versus FTHI's 9.2%. Furthermore, FTHI has underperformed the broader market over time. The Vanguard S&P 500 ETF ( NYSEARCA:VOO) boasts one-, three- and five-year annualized returns of 12.9%, 13.7%, and 12.2%, respectively, beating FTHI over each time frame. The Takeaway  FTHI’s 8.5% dividend yield and monthly payout schedule are enticing, and the ETF offers investors ample diversification. However, the fund's performance over time doesn't do enough to justify its high fees. Additionally, for investors interested in monthly payouts and high yields, there are plenty of ETFs out there with similar strategies that feature both higher dividend yields and lower expense ratios, meaning that investors are likely better off with these alternatives.  Disclosure

On August 17, 2023 at 15:09:36 ET an unusually large $1,635.00K block of Call contracts in Amazon.com (AMZN) was bought, with a strike price of $175.00 / share, expiring in 673 day(s) (on June 20, 2025). Fintel tracks all large options trades, and the premium spent on this trade

Shareholders of Etsy (NASDAQ: ETSY), the e-commerce marketplace for craft and vintage goods, are having to play a painful waiting game. The company was booming during 2020 and 2021, and management made some missteps it has been unwinding (it overpaid for marketplaces Depop and El

Apple recently became the first $3 trillion company. The iPhone maker reached that historic milestone last month, about five years after it became the first $1 trillion company, but Apple is unlikely to remain the only club member for long.

In today's video, I discuss numerous updates impacting popular semiconductor companies. Check out the short video to learn more, consider subscribing, and click the special offer link below.

The fintech sector has mostly been struggling of late.

Artificial intelligence (AI) stocks have -- at least until recently -- been the hottest trend in the market this year. Thanks to shifts in investor sentiment and a realization that the economy's recovery may not happen as quickly as some would like, some of these stocks have reve

At the beginning of 2010, the largest stock by market cap that traded on a U.S. stock exchange was an oil producer. Only two tech stocks ranked in the top five.

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The S&P 500 ended nearly flat on Friday as gains in defensive sectors and energy offset weakness in megacap growth stocks, while investors looked toward next week's speech by Federal Reserve Chair Jerome Powell.

The S&P 500 ended nearly flat on Friday as gains in defensive sectors and energy offset weakness in megacap growth stocks, while investors looked toward next week's speech by Federal Reserve Chair Jerome Powell.