ETF Education Report: FIRST TRUST BALANCED INCOME ETF (FTBI)

What this ETF is trying to do

The FIRST TRUST BALANCED INCOME ETF (FTBI) is an exchange-traded fund listed on the NYSE. While the specific investment strategy is not detailed in the provided data, the name suggests it focuses on providing a balance of income to its investors.

What the numbers show

It is important to understand that "price return" and "total return" tell different stories. Price return only tracks how the share price changes. Total return includes both the price change and the cash distributions paid out to investors.

As of September 24, 2026, the current price is $21.17. Looking at the past year:

• One-year price return: The share price decreased by approximately 0.62%.

• One-year total return: When including distributions, the total return was approximately 8.75%.

Looking at the year-to-date (YTD) data:

• YTD price return: The share price has fallen by approximately 0.52%.

• YTD total return: The total return is approximately 5.58%.

To visualize the price change, an investor could look at the estimated price from roughly one year ago, which was $21.30.

Income and distribution explanation

This ETF provides cash distributions to investors. The distribution yield is approximately 9.12%. This number describes the cash paid out relative to the ETF's price. It is important to remember that a high yield does not mean an investor earned that same percentage as total return.

The ETF has paid out $1.93 in trailing distributions. These payments happen frequently; over the last 12 months, there were 14 payouts. The distribution frequency is usually monthly, and the most common days for these payments are Thursday and Friday.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases over time. Investors often care about this because they want their original investment (the principal) to stay stable while they collect income.

For FTBI, the erosion-risk score is 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present. This suggests the fund's price movement is not currently showing signs of significant structural decay according to these measurements.

Pros

• The ETF provides a high distribution yield of approximately 9.12%.

• Total returns have been positive for both the year-to-date and one-year periods, even though the share price itself declined slightly.

• The erosion-risk score suggests a stable trend.

Cons

• The share price has seen slight declines in both the one-year and year-to-date periods.

• The income rating grade is a "C."

Beginner takeaway

When looking at an ETF like FTBI, it is helpful to look at both the share price and the total return. A falling share price (price return) does not tell the whole story if the fund is also paying out significant cash (distributions). Always remember that a high distribution yield can be misleading if the share price is dropping significantly, so checking the total return and erosion-risk scores can provide a clearer picture.