First Trust Launches Balanced Income ETF (FTBI) With 3-Pronged Strategy Across Stocks, Bonds & Gold

First Trust has introduced a new player in the dense universe of income-driven investment products. The First Trust Balanced Income ETF‘s FTBI active management and fund-of-funds approach provide a sophisticated interpretation of diversified income generation. The new ETF attempts to replicate, as closely as possible, the income pattern of the Bloomberg Moderate Allocation Income Focus Index. FTBI carries an expense ratio of 0.97%.

This fund’s top holdings reflect its multi-asset, income-centric mandate. Key names include the First Trust BuyWrite Income ETF FTHI, FT Vest Technology Dividend Target Income ETF TDVI, and First Trust Nasdaq BuyWrite Income ETF FTQI.

Instead of directly tracking the underlying index, however, FTBI approaches with a three-pronged strategy, combining a selected portfolio of First Trust’s own ETFs to aim for steady income in three asset classes: equities, fixed income, and commodities.

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Equity-linked ETFs account for 60% of its allocation. And these aren’t your plain vanilla equity funds. The equity exposure is split equally between core, growth, and value strategies, with each bucket using income-oriented strategies like buy-write and target income strategies. The outcome is a portfolio designed for yield without putting all your chips on one equity style.

On the fixed-income side, the fund invests approximately 35% of the portfolio, leaning toward a combination of government (12.25%) and corporate (14%) bonds, with more diverse investment-grade exposure (8.75%). The fixed-income sleeve also incorporates bond maturity diversity, a strategy that attempts to balance income predictability with interest rate risk. The fixed-income exposure is anchored by the First Trust Smith Opportunistic Fixed Income ETF FIXD, which adds tactical flexibility to the bond sleeve.

The other 5% is parked in commodity-linked ETFs, led by a focus on gold. This investment is managed through flexible exchange options, intended to unlock fixed income-like returns while also providing an inflation hedge—a golden parachute in case rates become choppy.

By adopting an actively managed strategy, FTBI presents investors with a handpicked combination of income strategies across asset classes, arguably performing the heavy allocation work so investors don’t need to.

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