DFEB
FT Vest U.S. Equity Deep Buffer ETF - February
📎 Investment Objective
The FT Vest U.S. Equity Deep Buffer ETF - February (DFEB) 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 Deep Buffer ETF - February
Performance
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Investment Summary
📎 Investment Objective
The FT Vest U.S. Equity Deep Buffer ETF - February (DFEB) seeks to provide investors with exposure to the U.S. equity market while aiming to limit downside risk during market downturns.
🎯 Investment Strategy
DFEB is a 'buffer ETF' that uses options strategies to provide a level of protection against losses in the underlying U.S. equity index. The fund targets a defined 'buffer' against the first 10-20% of losses in the reference index over an annual outcome period.
✨ Key Features
- Seeks to limit downside risk through the use of options-based 'buffer' strategy
- Resets the buffer and upside cap annually in February
- Provides exposure to the U.S. equity market through an underlying index
- Charges a 0.00% expense ratio
⚠️ Primary Risks
- Market risk - the fund's performance is tied to the U.S. equity market and can be volatile
- Option strategy risk - the effectiveness of the buffer strategy depends on the pricing and performance of the options used
- Outcome period risk - the buffer only applies for the specific 12-month outcome period
- Limited upside potential - the fund's upside is capped to provide the buffer against losses
👤 Best For
DFEB may be suitable for investors seeking U.S. equity exposure with some downside protection, particularly those with a medium-term investment horizon and moderate risk tolerance. The buffer strategy makes it less suitable for short-term traders or those seeking maximum upside potential.