DECM
FT Vest U.S. Equity Max Buffer ETF - December
📎 Investment Objective
The FT Vest U.S. Equity Max Buffer ETF - December seeks to provide investors with exposure to the U.S. equity market while aiming to limit downside risk during market downturns.
Overview
ETF tracking FT Vest U.S. Equity Max Buffer ETF - December
Performance
Price Chart
Investment Summary
📎 Investment Objective
The FT Vest U.S. Equity Max Buffer ETF - December seeks to provide investors with exposure to the U.S. equity market while aiming to limit downside risk during market downturns.
🎯 Investment Strategy
The ETF uses a buffered outcome strategy, which aims to provide a buffer against the first 10-15% of losses in the underlying U.S. equity index over a one-year outcome period. This is achieved through the use of options contracts that are reset annually in December.
✨ Key Features
- Seeks to provide exposure to the U.S. equity market with a buffer against the first 10-15% of losses
- Resets the buffer and upside participation annually in December
- Designed for investors with a one-year investment horizon
- Has a 0.00% expense ratio
⚠️ Primary Risks
- Market risk: The ETF's performance is tied to the performance of the U.S. equity market, which can be volatile
- Buffered loss risk: The buffer against losses is limited to the first 10-15%, and investors may still experience losses beyond that range
- Counterparty risk: The ETF's performance is dependent on the ability of the options counterparties to fulfill their obligations
- Liquidity risk: The ETF may have limited trading volume, which could impact an investor's ability to buy or sell shares
👤 Best For
This ETF may be suitable for investors with a moderate risk tolerance who are seeking U.S. equity exposure with some downside protection over a one-year investment horizon. It may be particularly appealing to investors concerned about potential market downturns.