BUFZ
FT Vest Laddered Moderate Buffer ETF
📎 Investment Objective
The FT Vest Laddered Moderate Buffer ETF (BUFZ) seeks to provide moderate downside protection while participating in the upside potential of the U.S. equity market.
Overview
ETF tracking FT Vest Laddered Moderate Buffer ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The FT Vest Laddered Moderate Buffer ETF (BUFZ) seeks to provide moderate downside protection while participating in the upside potential of the U.S. equity market.
🎯 Investment Strategy
BUFZ invests in a portfolio of options contracts 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 cap. The fund's holdings are laddered across different strike prices and expiration dates to manage risk and provide consistent downside protection.
✨ Key Features
- Moderate downside buffer of 10-20% against losses in the S&P 500 Index
- Participation in the upside of the S&P 500 Index up to a cap
- Laddered options portfolio to manage risk and provide consistent protection
- Low expense ratio of 0.00%
⚠️ Primary Risks
- Market risk: The fund's performance is tied to the S&P 500 Index and is subject to general market fluctuations
- Capped upside potential: The fund's participation in the upside of the S&P 500 is limited by the option strike prices
- Counterparty risk: The fund is exposed to the creditworthiness of the options counterparties
- Liquidity risk: The options contracts held by the fund may have limited liquidity
👤 Best For
BUFZ may be suitable for investors seeking moderate downside protection while maintaining some exposure to the upside potential of the U.S. equity market. It could be a component of a diversified portfolio, particularly for investors with a moderate risk tolerance and a medium-term investment horizon.