At a glance
HISF charges 0.83% a year, below the 0.86% average of the 7 funds most like it (the 3rd cheapest of 8). It has $98.5M in assets, the 8th largest of that group; it paid 5.65% of its price in distributions over the past 12 months, monthly. Over the past year it returned −0.5% with distributions reinvested, the weakest of those 8 funds; over three years it returned +5.8% a year. Its ten largest positions make up 95.0% of the fund, out of 11 in all.
The short version
First Trust High Income Strategic Focus ETF (HISF) is a fund of funds. It owns 11 other bond ETFs, mostly run by First Trust, and picks them using the firm's own High Income Model. The mix covers investment-grade bonds, junk bonds, senior loans, mortgage securities, emerging-market debt and preferreds. It pays monthly, with a trailing 12-month yield of 5.65% as of October 27, 2026. The trade-off is a 0.83% expense ratio.
Price history
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HISF -0.5% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| HISF official prospectus, to Dec 31, 2025 | — | +8.21% | — | +3.10% | +4.02% | +3.33% |
| HISF price data to Oct 27, 2026 | -1.3% | -0.5% | +5.8% | — | — | +4.5% |
- Over the year to Oct 27, 2026, HISF returned -0.5%, 8th of 8 among similar funds.
- Its worst full calendar year was 2024 (+2.3%); its best was 2025 (+8.8%).
- The deepest fall in its price history was 5.3% (Feb 2, 2023 to Oct 19, 2023), recovered by Dec 1, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -1.3% | — |
| 2025 | +8.8% | +8.21% |
| 2024 | +2.3% | +2.30% |
| 2023 | +6.4% | +6.49% |
| 2022 | — | -9.78% |
| 2021 | — | +9.54% |
| 2020 | — | -2.49% |
| 2019 | — | +15.45% |
| 2018 | — | -4.85% |
| 2017 | — | +6.46% |
| 2016 | — | +11.69% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Oct 18, 2022 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Not in the price data, which starts Oct 18, 2022 |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.8700 | |
| 2025 | $2.2900 | +11.0% |
| 2024 | $2.0630 | +7.6% |
| 2023 | $1.9180 |
What's inside
As of Jul 31, 2026, the fund held 11 securities; the ten largest made up 94.96% of assets.
| Fund held | Weight | |
|---|---|---|
| First Trust Core Investment Grade ETF | 27.82% | |
| First Trust Tactical High Yield ETF | 10.08% | |
| First Trust Low Duration Opportunities ETF | 10.07% | |
| First Trust Intermediate Duration Investment Grade Corporate ETF | 9.94% | |
| First Trust Smith Opportunistic Fixed Income ETF | 9.92% | |
| First Trust Long Duration Opportunities ETF | 6.87% | |
| First Trust Emerging Markets Local Currency Bond ETF | 5.11% | |
| First Trust Senior Loan Fund | 5.08% | |
| First Trust Limited Duration Investment Grade Corporate ETF | 5.04% | |
| First Trust Preferred Securities and Income ETF | 5.02% | |
| First Trust Structured Credit Income Opportunities ETF | 5.02% |
By country
United States 99.98%By asset type
Stocks 99.98%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $8.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.36%, +0.13%, -0.75%.
How it works
HISF does not track an index. Its adviser, First Trust Advisors L.P., runs a "High Income Model," and the fund buys the U.S.-listed ETFs in that model. The main goal is "risk-adjusted income," which means income weighed against the risk taken to earn it. Capital growth comes second. First Trust starts with the big picture: interest-rate policy, government spending, growth forecasts and valuations. It then looks at duration (how sensitive bonds are to rate changes), credit quality and currency to decide which bond types look most attractive.
The model can shift among Treasuries, investment-grade and junk corporate bonds, senior loans, asset-backed and mortgage securities, foreign and emerging-market bonds, and preferred and convertible securities. It has caps: at most 60% in U.S. high-yield bonds and loans, 30% in non-U.S. debt, 20% in emerging markets, 20% in preferreds and 10% in convertibles. The manager sets the weights, not a formula, and the fund may trade often. Portfolio turnover was 32% in its February 27, 2026 prospectus.
As of July 31, 2026, it held 11 ETFs, and the top 10 made up about 95% of assets. The largest was First Trust Core Investment Grade ETF (FTCB) at about 28%. Next came First Trust Tactical High Yield (HYLS), First Trust Low Duration Opportunities (LMBS), First Trust Intermediate Duration Investment Grade Corporate (FIIG) and First Trust Smith Opportunistic Fixed Income (FIXD), each near 10%. HISF itself uses no derivatives, though some of the ETFs it owns may.
What it really costs
- HISF charges 0.83% a year, versus an average of 0.86% for the similar funds below (3rd of 8, cheapest first).
- Of that, 0.1% is the management fee; the rest covers other fund expenses.
Structure and tax notes
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
Its main objective is income from a mix of bond types, paid monthly, with a trailing 12-month yield of 5.65% as of October 27, 2026.
HISF could add a monthly income stream drawn from many parts of the bond market. It launched in 2014, so it has no record from 2008. It was not immune to later stress. It lost 18.55% in the first quarter of 2020 and fell 9.78% in 2022, its worst calendar year in the prospectus record (2016 to 2025). It also lost 4.85% in 2018. Price history from October 2022 onward shows a largest drop of 5.3%, from February to October 2023, recovered by December 2023. Someone forced to sell shares in a year like 2022 would have locked in losses. Costs run 0.83% a year, well above the 0.10% management fee, because a fund of funds also carries the fees of the ETFs it owns. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income seekers who want monthly payouts from one fund mixing investment-grade bonds, junk bonds, senior loans, mortgage securities and emerging-market debt.
- Investors willing to let First Trust's High Income Model shift among bond sectors, within set caps, instead of tracking a fixed index.
- Those wanting smaller swings than stocks: one-year volatility was 3.6% and beta 0.15 as of October 27, 2026.
Look elsewhere if
- Cost-focused investors: the 0.83% expense ratio is more than eight times the 0.10% management fee because it includes the costs of the underlying ETFs.
- Investors uneasy about conflicts of interest: most holdings are First Trust ETFs, so the adviser earns fees on both layers.
- Anyone who can't accept bond-fund losses: the fund fell 9.78% in 2022 and 18.55% in the first quarter of 2020.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| HISF this fund | 0.83% | $98.5M | -0.5% | +5.8% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Does HISF pay monthly dividends?
Yes. HISF pays distributions every month. In the 12 months to October 27, 2026, it paid about $2.42 per share, a trailing yield of 5.65%. The money comes from interest earned by the 11 bond ETFs it owns. Payments can go up or down as interest rates, credit conditions and the manager's mix change, so past payouts are not guaranteed.
What does HISF invest in?
HISF owns other ETFs, not individual bonds. As of July 31, 2026, it held 11 ETFs, nearly all run by First Trust. The largest was First Trust Core Investment Grade ETF (FTCB) at about 28%. HYLS (high yield), LMBS (mortgage-focused low duration), FIIG (investment-grade corporates) and FIXD each made up about 10%. Smaller positions covered long-duration bonds, emerging-market local-currency debt, senior loans, preferreds and structured credit.
What is HISF's expense ratio?
HISF's expense ratio is 0.83%, according to its prospectus filed February 27, 2026. The fund's own management fee is only 0.10%, and no fee waiver applies. The rest reflects a fund of funds' layered costs: HISF also bears the fees of the First Trust and other ETFs it owns. Investors comparing costs may find it useful to look at the total figure, not just the management fee.
Is HISF good for retirement income?
HISF may suit retirees looking for monthly bond income, but it carries real risk. Its trailing yield was 5.65% as of October 27, 2026. It also holds junk bonds, senior loans and emerging-market debt. It lost 9.78% in 2022 and 18.55% in the first quarter of 2020. Fees are 0.83% a year. It is probably best judged as one part of a broader portfolio rather than on its own.
How has HISF performed over 10 years?
HISF returned an average of 4.02% a year over the 10 years ending December 31, 2025, according to its prospectus. Over five years the average was 3.10% a year, and over one year it was 8.21%. Calendar years ranged from a 15.45% gain in 2019 to a 9.78% loss in 2022. Price-based returns through October 27, 2026 show 5.8% a year over three years and a 0.5% loss over one year.