BUFH
FT Vest Laddered Max Buffer ETF
📎 Investment Objective
The FT Vest Laddered Max Buffer ETF (BUFH) seeks to provide investors with a buffer against downside market risk while participating in some upside market performance.
Overview
ETF tracking FT Vest Laddered Max Buffer ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The FT Vest Laddered Max Buffer ETF (BUFH) seeks to provide investors with a buffer against downside market risk while participating in some upside market performance.
🎯 Investment Strategy
The ETF aims to achieve its objective by investing in a portfolio of options contracts that are designed to provide a maximum level of downside protection, while also allowing for some upside participation. The fund utilizes a laddered approach, investing in options with different strike prices and expiration dates to manage risk and provide a smoother return profile.
✨ Key Features
- Seeks to provide a buffer against downside market risk, typically between 10-20%
- Participates in some upside market performance, though with a cap on returns
- Utilizes a laddered options strategy to manage risk and provide a smoother return profile
- Expense ratio of 0.00%
⚠️ Primary Risks
- Market risk: The fund's performance is tied to the performance of the underlying options and the broader market
- Liquidity risk: The options contracts held by the fund may have limited liquidity, which could impact the fund's ability to execute trades
- Counterparty risk: The fund is exposed to the creditworthiness of the options counterparties
- Capped upside potential: The fund's upside participation is typically capped, limiting its ability to fully capture market rallies
👤 Best For
This ETF may be suitable for investors seeking downside protection while maintaining some upside exposure, and who have a moderate risk tolerance and a medium-term investment horizon. It may be particularly appealing to those concerned about market volatility or looking to complement a more traditional equity portfolio.