FTHI: Is The Trade-Off Between Income And Growth Worth It?
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FTHI employs a buy-write strategy on the S&P 500, offering a 9% yield but capping growth potential. It suits income-focused investors, not those seeking capital appreciation, as it underperformed the S&P 500 over the past decade.
November 19, 2024 | 8:15 am
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FTHI offers a 9% distribution yield through a buy-write strategy on the S&P 500, suitable for income-focused investors. It limits growth potential and has underperformed the S&P 500 over the past decade.
FTHI's strategy of selling call options generates income but caps growth, making it less attractive in a bull market. Its underperformance compared to the S&P 500 highlights this trade-off, impacting its appeal to growth-seeking investors.
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