DDEC
FT Vest U.S. Equity Deep Buffer ETF - December
📎 Investment Objective
The FT Vest U.S. Equity Deep Buffer ETF - December (DDEC) seeks to provide investors with a buffer against losses in the U.S. equity market during a specified 12-month period.
Overview
ETF tracking FT Vest U.S. Equity Deep Buffer ETF - December
Performance
Price Chart
Investment Summary
📎 Investment Objective
The FT Vest U.S. Equity Deep Buffer ETF - December (DDEC) seeks to provide investors with a buffer against losses in the U.S. equity market during a specified 12-month period.
🎯 Investment Strategy
DDEC is a buffered ETF that aims to provide downside protection by limiting losses to a predetermined percentage, while allowing for upside participation in the U.S. equity market. The fund utilizes a options-based strategy to achieve this objective.
✨ Key Features
- Seeks to limit losses to a predetermined percentage (the 'buffer') during a 12-month period
- Provides upside exposure to the U.S. equity market, subject to the buffer
- Resets the buffer and upside cap annually in December
- Designed as a risk management tool for equity market exposure
⚠️ Primary Risks
- Market risk: The fund's performance is tied to the U.S. equity market and can be volatile
- Option-based strategy risk: The use of options can introduce additional risks and complexities
- Counterparty risk: The fund is exposed to the creditworthiness of the options counterparties
- Reset risk: The buffer and upside cap reset annually, which may not align with an investor's time horizon
👤 Best For
DDEC may be suitable for investors seeking equity market exposure with a degree of downside protection, particularly those with a 12-month investment horizon who are willing to accept the fund's risks and limitations.