First Trust launches new ETF: First Trust Balanced Income ETF (FTBI)

First Trust Advisors L.P. (“First Trust”), a leading exchange-traded fund (“ETF”) provider and asset manager, announced today that it has launched a new ETF, the First Trust Balanced Income ETF (NYSE Arca: FTBI) (the “fund”). FTBI seeks investment results that correspond generally to the price and yield (before the fund’s fees and expenses) of an index called the Bloomberg Moderate Allocation Income Focus Index (the “index”), which is reconstituted and rebalanced semi-annually.

First Trust, the fund’s investment advisor, also advises the ETFs that comprise the index’s selection universe. This blend of a fund-of-funds approach with a disciplined index construction process provides one-ticker access to a selection of First Trust’s income-generating ETFs and their experienced portfolio management teams in a fixed allocation across multiple asset classes:

• Equity allocation (60%): Equity-linked income ETFs, including First Trust Target Income and buywrite income equity ETFs
• Fixed income allocation (35%): First Trust investment grade fixed income ETFs
• Commodity allocation (5%): First Trust Target Income commodity-linked income ETF

“ETFs that generate income by selling call options have grown increasingly popular in recent years. FTBI, structured as a fund-of-funds, invests in a diverse range of income-generating ETFs across multiple asset classes, including those that employ option-selling strategies,” said Ryan Issakainen, CFA, Senior Vice President, ETF Strategist at First Trust.

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