The Unyielding Fund: A Closer Look at First Trust S&P REIT Index Fund's Dividend Dilemma The 10% drop in dividend payments from First Trust S&P REIT Index Fund (FRI) has sent shockwaves through the investment community, leaving many income investors wondering if this is a sign of deeper pressure to come.
However, a closer examination of the fund's mechanics and holdings reveals that FRI's distribution is more resilient than it initially seems.
At its core, FRI is a passive index fund that tracks the S&P United States REIT Index, passing through rental cash flow from 140 publicly traded landlords to its shareholders.