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WHEATON, Ill. - First Trust Advisors L.P., known for its range of exchange-traded funds (ETFs), has announced the introduction of the First Trust Balanced Income ETF (NYSE Arca: FTBI). The ETF is designed to track the Bloomberg Moderate Allocation Income Focus Index, which is reconstituted and rebalanced semi-annually. FTBI aims to provide investors with investment results that correspond to the price and yield, before fees and expenses, of the index. Investors seeking detailed ETF analysis can access comprehensive screening tools and performance metrics through InvestingPro, which offers advanced portfolio analysis capabilities and expert insights.
The newly launched ETF operates as a fund-of-funds, meaning it invests in other ETFs, specifically those managed by First Trust. The target allocation for the fund is 60% in equity-linked income ETFs, 35% in investment-grade fixed income ETFs, and 5% in commodity-linked income ETFs. This diversified approach spans multiple asset classes, offering investors a blend of income-generating assets.
Ryan Issakainen, CFA, Senior Vice President and ETF Strategist at First Trust, highlighted the growing popularity of ETFs that generate income through option-selling strategies. FTBI encapsulates this trend, providing exposure to a variety of income strategies within the First Trust family.
Investing in ETFs like FTBI involves risks, including the possibility of losing money. The fund is not insured or guaranteed, and there is no certainty that the investment objectives will be met. Shares of the ETF may only be redeemed directly from the fund by authorized participants in large creation/redemption units. This could result in the shares trading at a premium or discount to the net asset value and may affect liquidity and market price.
First Trust Advisors, with approximately $255 billion in assets under management as of April 30, 2025, serves as the fund’s investment advisor. The company and its affiliate, First Trust Portfolios L.P., offer a variety of investment services from their headquarters in Wheaton, Illinois. For investors interested in comprehensive fund analysis and portfolio optimization, InvestingPro provides institutional-grade research tools and exclusive ETF insights to help make informed investment decisions.
This new ETF offers a potential opportunity for investors seeking income through a diversified, multi-asset strategy. The information provided here is based on a press release statement from First Trust Advisors L.P. To explore similar income-generating investment opportunities and compare ETF performance metrics, visit InvestingPro’s advanced screener, offering sophisticated filtering tools and real-time market analysis.
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