What this ETF is trying to do

The FIRST TRUST HIGH INCOME STRATEGIC FOCUS ETF (HISF) is an exchange-traded fund designed with a focus on providing high income to investors.

What the numbers show

As of October 9, 2026, the current price of one share is $42.53. Looking back, the estimated price from roughly one year ago was about $45.18.

When studying how this ETF has performed, it is important to look at two different types of returns:

• Price Return: This measures only the change in the share price itself. Over the last year, the one-year price return was -5.86%. Year-to-date (YTD), the price return is -6.00%.

• Total Return: This includes both the share price changes and the cash distributions paid to investors. The one-year total return was -0.98%, and the YTD total return was -2.34%.

To understand the difference, imagine you started with $10,000. If you only looked at the share price (the price return), your $10,000 would have dropped to about $9,414. However, because of the cash payments received, your total value would be slightly higher, at approximately $9,902.

Income and distribution explanation

This ETF has a distribution yield of 5.28%. This number describes the cash distributions paid out relative to the ETF's price. These payments usually happen every month, and there were 12 payments made over the last year.

It is important for new investors to remember that a high distribution yield does not guarantee you are making money. If the share price falls significantly, the total return can still be negative even if you are receiving regular cash.

NAV erosion explanation

"NAV erosion" refers to a decline in the value of the actual assets held inside the ETF. This ETF has an erosion-risk score of 75, which is labeled as "mild price erosion." This is a measurement used to identify potential risks regarding how the fund's price behaves over time.

Pros

• The ETF provides regular cash income through monthly distributions.

• It offers a distribution yield of 5.28%.

Cons

• The share price has declined over the last year and year-to-date.

• Both the price return and total return have been negative for the periods provided.

• There is a measurement of mild erosion risk.

Beginner takeaway

When looking at an ETF like HISF, you should look at both the cash you receive (the distribution yield) and the change in the share price (the price return). Even if an ETF pays regular monthly cash, the total value of your investment can still go down if the share price drops more than the cash payments add back.