First Trust High Yield Opportunities 2027 Term Fund Common Stock (FTHY)
Frequently Asked Questions About First Trust High Yield Opportunities 2027 Term Fund Common Stock (FTHY)
Can the price of FTHY shares fluctuate?
Yes, the price of FTHY shares can fluctuate based on various factors, including market conditions, interest rate changes, and the performance of its underlying assets. As a publicly traded fund, its share prices may trade at a premium or discount to its net asset value (NAV) depending on investor sentiment and market dynamics.
How can investors track FTHY's performance?
Investors can track FTHY's performance through various financial news platforms, brokerage websites, and First Trust's official website, which provides updates on NAV, market price, dividend history, and overall performance metrics. Understanding these factors can help investors evaluate the fund's success relative to its objectives.
How does FTHY compare to other investment options?
FTHY offers a unique investment option focusing on high-yield bonds within a defined term structure, setting it apart from traditional equity funds or long-term fixed-income investments. Its closed-end structure allows for a targeted income strategy, appealing to investors who desire higher current income with a clear liquidity timeline.
How often does FTHY distribute dividends?
FTHY typically pays monthly dividends to its shareholders. The fund's income distributions are derived from the interest income generated by its bond investments, and the amount may vary depending on the fund’s income levels and market conditions.
Is FTHY publicly traded?
Yes, First Trust High Yield Opportunities 2027 Term Fund is publicly traded on the New York Stock Exchange under the ticker symbol FTHY. Investors can purchase shares of FTHY through their brokerage accounts, allowing for liquidity and accessibility akin to commonly traded equities.
Is there a minimum investment required to purchase FTHY?
There is no specific minimum investment required to purchase shares of FTHY, but investors must comply with their brokerage's policies regarding the purchase of shares, including any commissions or fees associated with a transaction. Typically, shares can be bought like any other publicly traded stock.
What are the risks associated with investing in FTHY?
Investing in FTHY carries several risks, including credit risk, interest rate risk, and market risk due to fluctuations in the value of bonds. High-yield bonds can be particularly volatile, and adverse economic conditions or decreases in the issuer's creditworthiness can significantly affect the fund's performance.
What does First Trust High Yield Opportunities 2027 Term Fund (FTHY) do?
First Trust High Yield Opportunities 2027 Term Fund (FTHY) is a closed-end management investment company that primarily invests in a diversified portfolio of high-yield, below-investment-grade bonds. The fund aims to provide a high level of current income while also focusing on capital appreciation. It has a specific termination date of 2027, after which the fund will dissolve and return remaining assets to shareholders.
What fees are associated with investing in FTHY?
Investors in FTHY may incur various fees, including management fees, administrative expenses, and other costs associated with the fund's operation. The fund's prospectus provides detailed information about these fees and the total expense ratio, which is important for investors to consider when evaluating potential returns.
What is the investment objective of FTHY?
The primary investment objective of FTHY is to provide shareholders with high current income while also focusing on capital appreciation over its term until dissolution in 2027. The fund seeks to achieve this by investing primarily in a diverse range of high-yield bonds and other income-generating securities.
What is the significance of the 2027 term for FTHY?
The designation of '2027' in FTHY reflects the fund's planned liquidation date. This term structure is intended to provide a defined investment horizon for shareholders, after which the fund will distribute its remaining assets to investors. This timeline can be attractive to investors seeking clarity in their investment strategy.
What is the total asset size of FTHY?
The total asset size of FTHY can vary over time based on market performance and investor activity. As of the latest reports, the fund's asset size is publicly disclosed and can typically be found on financial data platforms or the First Trust website. This information is important for assessing the fund's scale and operational capacity.
What is the typical credit quality of the bonds in FTHY's portfolio?
The bonds included in FTHY's portfolio are predominantly rated below investment grade, or high-yield. This means they generally have a higher risk of default compared to higher-rated bonds but offer potentially greater returns. The fund's management team conducts thorough research to navigate this risk.
What potential tax implications should investors be aware of with FTHY?
Investors in FTHY should consider potential tax implications associated with receiving dividends, particularly since many high-yield bonds generate interest income that could be subject to various tax treatments. It's advisable to consult a tax professional for personalized advice on how to best account for such income in their tax situation.
What types of securities does FTHY invest in?
FTHY invests primarily in high-yield, non-investment-grade bonds, often referred to as junk bonds, but it may also invest in other fixed-income securities, including convertible securities and preferred stocks. The exploration of a variety of income-generating assets aims to enhance total returns while managing risk.
When was First Trust High Yield Opportunities 2027 Term Fund established?
First Trust High Yield Opportunities 2027 Term Fund was established on March 3, 2020. Since its inception, the fund has aimed to strategically invest in high-yield bonds and other fixed-income instruments, providing investors with potentially attractive income returns within a well-defined time frame.
Who are the typical investors in FTHY?
Typical investors in FTHY may include income-focused investors, retirees, or those seeking higher yields through fixed-income investments. Due to the nature of high-yield bonds, investors should ideally have a higher risk tolerance and an investment horizon aligned with the fund's term structure.
Who manages First Trust High Yield Opportunities 2027 Term Fund?
The fund is managed by First Trust Advisors L.P., a well-known investment management firm with a robust history in closed-end fund management. The team employs a research-driven approach to find high-yield investment opportunities that meet the fund's income and risk criteria.
What is the current price of First Trust High Yield Opportunities 2027 Term Fund Common Stock?
The current price of First Trust High Yield Opportunities 2027 Term Fund Common Stock is 14.27
When was First Trust High Yield Opportunities 2027 Term Fund Common Stock last traded?
The last trade of First Trust High Yield Opportunities 2027 Term Fund Common Stock was at 4:10 pm EDT on April 2nd, 2025