Sacrificing Upside For Income: A Look At FTQI
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FTQI employs a buy-write strategy on the NASDAQ-100, offering a 12% yield through monthly distributions. It sells call options on all holdings, capping upside potential, making it suitable for income-focused investors. It has underperformed the NASDAQ 100, with a 76% ROI over 10 years compared to the index's 436%.
November 13, 2024 | 2:00 pm
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FTQI offers a 12% yield through a buy-write strategy on the NASDAQ-100, capping upside potential. It has underperformed the NASDAQ 100, making it suitable for income-focused investors.
FTQI's strategy of selling call options on all holdings limits its upside potential, which has led to underperformance compared to the NASDAQ 100. However, its high yield makes it attractive to income-focused investors, balancing the capped gains.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100