First Trust Exchange-Traded Fund IV FT Vest 20+ Year Treasury & Target Income ETF
No trades
Key stats
About First Trust Exchange-Traded Fund IV FT Vest 20+ Year Treasury & Target Income ETF
Home page
Inception date
Feb 12, 2025
Structure
Open-Ended Fund
Dividend treatment
Distributes
Distribution tax treatment
Ordinary income
Income tax type
Capital Gains
Max ST capital gains rate
39.60%
Max LT capital gains rate
20.00%
Primary advisor
First Trust Advisors LP
Distributor
First Trust Portfolios LP
LTTI is an actively managed fund that seeks current income and capital appreciation by combining synthetic long positions in the iShares 20+ Year Treasury Bond ETF (ticker: TLT) with a partial call writing strategy. The synthetic exposure to the underlying ETF is achieved by utilizing FLEX options with up to one-year expirations and purchasing a laddered portfolio of short-term US Treasurys. The fund also sells weekly, at-the-money FLEX call options on the underlying ETF. LTTI seeks to provide distributions at an annual rate of about 5% higher than TLT's, through income generated from US Treasurys and option premiums. In exchange for premiums earned from selling call options, the fund forfeits any gains above the options strike price when TLT's price appreciates. The fund is expected to perform best in relatively stable markets, where premium income is consistent and bond prices don't decline sharply. However, the use of FLEX options opens investors to counterparty risk.
Classification
Returns
| 1 month | 3 months | Year to date | 1 year | 3 years | 5 years | |
|---|---|---|---|---|---|---|
| Price performance | — | — | — | — | — | — |
| NAV total return | — | — | — | — | — | — |
What's in the fund
Exposure type
Rights & Warrants
Bonds, Cash & Other100.00%
Rights & Warrants98.11%
Cash1.19%
Government0.70%
Stock breakdown by region
North America100.00%
Latin America0.00%
Europe0.00%
Asia0.00%
Africa0.00%
Middle East0.00%
Oceania0.00%
Top 10 holdings
Dividends
Dividend payout history