DAUG
FT Vest U.S. Equity Deep Buffer ETF - August
📎 Investment Objective
The FT Vest U.S. Equity Deep Buffer ETF - August (DAUG) seeks to provide investors with a buffer against the first 10% of losses in the U.S. equity market over a one-year period, while providing upside exposure to the market's performance.
Overview
ETF tracking FT Vest U.S. Equity Deep Buffer ETF - August
Performance
Price Chart
Investment Summary
📎 Investment Objective
The FT Vest U.S. Equity Deep Buffer ETF - August (DAUG) seeks to provide investors with a buffer against the first 10% of losses in the U.S. equity market over a one-year period, while providing upside exposure to the market's performance.
🎯 Investment Strategy
DAUG achieves its objective by investing in a portfolio of U.S. equity securities and options contracts. The fund uses a 'buffer' strategy, where it aims to limit downside risk by providing a buffer against the first 10% of losses in the U.S. equity market over a one-year period, while allowing investors to participate in the market's upside performance.
✨ Key Features
- Provides a 10% buffer against losses in the U.S. equity market over a one-year period
- Offers upside exposure to the performance of the U.S. equity market
- Resets the buffer and upside exposure annually in August
- Expense ratio of 0.00%
⚠️ Primary Risks
- Market risk: The fund's performance is tied to the performance of the U.S. equity market, and it may experience significant volatility
- Derivative risk: The fund's use of options contracts to implement its buffer strategy may not be successful and could result in losses
- Liquidity risk: The fund may have difficulty buying or selling certain securities, which could affect its performance
- Concentration risk: The fund's focus on the U.S. equity market means it may be more susceptible to factors affecting that market
👤 Best For
DAUG may be suitable for investors seeking equity market exposure with a level of downside protection, particularly those with a medium-term investment horizon and a moderate risk tolerance. The fund's buffer strategy may appeal to investors who want to participate in the upside of the U.S. equity market while limiting their downside risk.