3 New Fixed-Income ETFs Use Options To Target Higher Income
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
New ETFs Launched: First Trust Advisors has introduced three new Target Income ETFs—LQTI, HYTI, and LTTI—designed to enhance income potential while maintaining fixed-income exposure through option strategies, each with a net expense ratio of 0.65%.
Investment Focus: The funds focus on different sectors, including investment-grade corporate bonds, high-yield corporate bonds, and long-term U.S. Treasury securities, utilizing FLEX options to aim for an annual income rate 5% higher than their underlying ETFs.
Analyst Views on TLT
Wall Street analysts forecast TLT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TLT is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 87.310
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Current: 87.310
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
