BUFD
FT Vest Laddered Deep Buffer ETF
📎 Investment Objective
The FT Vest Laddered Deep Buffer ETF (BUFD) seeks to provide investors with a buffered level of downside protection while participating in the upside potential of the U.S. equity market.
Overview
ETF tracking FT Vest Laddered Deep Buffer ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The FT Vest Laddered Deep Buffer ETF (BUFD) seeks to provide investors with a buffered level of downside protection while participating in the upside potential of the U.S. equity market.
🎯 Investment Strategy
BUFD aims to achieve its objective by investing in a portfolio of options contracts that are designed to provide a buffer against the first 10-20% of losses in the S&P 500 Index, while allowing for participation in the upside of the index up to a predetermined cap. The fund utilizes a laddered approach, holding multiple option contracts with different strike prices and expiration dates to manage risk and provide a consistent level of downside protection.
✨ Key Features
- Seeks to provide a buffer against the first 10-20% of losses in the S&P 500 Index
- Allows for participation in the upside of the S&P 500 Index up to a predetermined cap
- Utilizes a laddered approach to manage risk and provide consistent downside protection
- Expense ratio of 0.00%
⚠️ Primary Risks
- Market risk: The fund's performance is tied to the performance of the S&P 500 Index, and it is subject to the same market fluctuations and volatility
- Capped upside potential: The fund's participation in the upside of the S&P 500 Index is limited by the predetermined cap, which may result in lower returns compared to a direct investment in the index
- Counterparty risk: The fund's performance is dependent on the ability of the options counterparties to fulfill their obligations
- Liquidity risk: The options contracts held by the fund may have limited liquidity, which could impact the fund's ability to execute trades or meet redemption requests
👤 Best For
The FT Vest Laddered Deep Buffer ETF may be suitable for investors seeking a level of downside protection in their equity exposure, while still maintaining some upside potential. It may be particularly appealing to investors with a moderate risk tolerance who are looking to manage their overall portfolio risk.