The short interest in the First Trust NASDAQ BuyWrite Income ETF (NASDAQ: FTQI) experienced a significant decline in December 2023. As of December 31, the ETF reported a short interest of 42,636 shares, marking a dramatic decrease of 51.1% from the 87,110 shares recorded on December 15. This reduction indicates a shift in investor sentiment, with only 0.1% of the company’s stock currently short sold.
The average daily trading volume for FTQI stands at 157,318 shares, resulting in a days-to-cover ratio of 0.3 days. This low ratio suggests that the short positions could be covered relatively quickly, indicating a potentially bullish outlook from investors.
Stock Performance and Dividends
On Friday, FTQI’s shares traded down by $0.03, reaching $20.99 during midday trading. A total of 308,069 shares changed hands, slightly below the average volume of 308,870 shares. Over the past year, the ETF has seen a low of $16.25 and a high of $21.36. The fund’s current 50-day moving average price is $20.82, while the 200-day moving average is $20.47. With a market capitalization of $766.14 million, the ETF has a price-to-earnings (PE) ratio of 32.31 and a beta of 0.59, indicating lower volatility compared to the market.
In addition to the changes in short interest, the First Trust NASDAQ BuyWrite Income ETF has also announced a monthly dividend. Shareholders of record on December 12 received a dividend of $0.205 per share, which translates to an annualized yield of 11.7%. The ex-dividend date for this distribution was also on December 12, allowing investors to benefit from this return on investment.
Overview of the ETF
The First Trust NASDAQ BuyWrite Income ETF primarily invests in large-cap equities and employs an actively managed portfolio strategy that includes short call options on the Nasdaq 100. Launched on January 6, 2014, the fund is managed by First Trust, a firm known for its focus on investment strategies that seek to enhance returns.
As investors continue to monitor the performance and strategies associated with FTQI, the recent decrease in short interest may signal renewed confidence in its financial prospects. With its attractive dividend yield and strategic investment approach, FTQI remains a noteworthy option for those looking to engage in equity markets.
