FTHY: A Very Good Bond Fund For Retirement Income

Marat Musabirov The First Trust High Yield Opportunities 2027 Term Fund ( NYSE: FTHY ) is a closed-end fund, or CEF, that income-focused investors can purchase as a method of achieving their goals. At least, it can help them achieve their income goals for a little while, since the fund is scheduled to be liquidated on August 1, 2027. That date is still three years away, though, so the fund could offer an investor a reasonably decent opportunity to lock in an attractive yield for the next few years.

The fund’s yield is quite attractive too, as it currently boasts a 10.89% payout. Here is how that compares to some of the fund’s peers: Fund Name Morningstar Classification Current Yield First Trust High Yield Opportunities 2027 Term Fund Fixed Income-Taxable-High Yield 10.

89% Allspring Income Opportunities Fund ( EAD ) Fixed Income-Taxable-High Yield 9.44% BNY Mellon High Yield Strategies Fund ( DHF ) Fixed Income-Taxable-High Yield 8.71% BlackRock Corporate High Yield Fund ( HYT ) Fixed Income-Taxable-High Yield 9.

65% Invesco High Income Fund II ( VLT ) Fixed Income-Taxable-High Yield 10.94% PGIM High Yield Bond Fund ( ISD ) Fixed Income-Taxable-High Yield 9.78% Click to enlarge As we can immediately see, there is only one fund on the list with a yield that beats that of the First Trust High Yield Opportunities 2027 Term Fund.

That fund’s yield is only five basis points higher, though, so it is not a big deal. That fund might also have a bit more volatility going forward b.