ETF Report: First Trust Balanced Income ETF (FTBI)

What this ETF is trying to do

The First Trust Balanced Income ETF, known by its ticker symbol FTBI, is an exchange-traded fund (ETF). This type of investment is designed to provide income to its investors. It focuses on a "balanced" approach, which usually means it holds different types of assets to try and create steady payments.

What the numbers show

As of July 16, 2026, the current price of one share is $21.64. Looking back at the last year, the price has grown by about 5.22%. When you include the extra money paid out to investors, the "total return" for the year was much higher at 14.20%.

So far this year (Year-to-Date), the price has gone up by 1.69%, while the total return is 5.81%. This shows that the fund's value and its payouts have both been moving upward recently.

Income and distribution explanation

This ETF is known for paying out money to people who own it. The "distribution yield" is 8.07%. This number tells you how much income the fund paid out compared to its price. Over the last 12 months, the total amount paid per share was $1.7467.

These payments happen quite often. In the last year, there were 13 payouts, and they usually happen once a month. Most of these payments have been sent out on Thursdays.

It is important to remember that a high yield alone can be misleading. A very high percentage might look good, but you must always check if the actual price of the ETF is staying steady or falling.

NAV erosion explanation

"NAV erosion" is a term used when the value of the underlying assets in an ETF drops significantly over time. Think of it like a bucket with a small hole in the bottom; even if you keep pouring water (income) into it, the level of the water (the share price) keeps getting lower.

If an ETF has severe erosion, the share price can fall from a high number to a much lower number. This can destroy your "principal," which is the original money you put in. For example, if you invested $10,000 and the price collapses, you might end up with much less than $10,000, even after receiving income payments.

Fortunately, for FTBI, no price erosion has been detected. The data shows a "good" erosion score, meaning the price is not being eaten away by these types of losses.

Pros

• The fund has shown a positive total return over the last year (14.20%).

• It provides regular monthly income.

• There are no signs of significant price erosion.

Cons

• The price does not grow as fast as the total return because much of the value comes from the payouts.

Beginner takeaway

When looking at income ETFs, don't just look for the highest percentage. Income investors usually prefer ETFs that go sideways (stay at the same price) or move slightly up. They want to avoid funds that collapse in price, because a falling price can cancel out the benefits of the income you receive.