Positive
Seeking Alpha
1 month ago
FFA Equity Fund With Call-Overlay, 7.27% Yield, 10% Discount, And Decent Growth
First Trust Enhanced Equity Income Fund offers a 7.25% yield and trades at a -10% NAV discount, appealing to income-focused investors. FFA employs a 60% call-write strategy on large-cap U.S. equities, with significant technology sector exposure and zero leverage, moderating volatility. The fund's managed distribution policy is well-covered, with no return of capital over five years and NAV growth of nearly 30% since 2021.