DHDG
FT Vest U.S. Equity Quarterly 2.5 to 15 Buffer ETF
📎 Investment Objective
The FT Vest U.S. Equity Quarterly 2.5 to 15 Buffer ETF (DHDG) seeks to provide investors with exposure to the U.S. equity market while aiming to limit downside risk through a buffer against losses.
Overview
ETF tracking FT Vest U.S. Equity Quarterly 2.5 to 15 Buffer ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The FT Vest U.S. Equity Quarterly 2.5 to 15 Buffer ETF (DHDG) seeks to provide investors with exposure to the U.S. equity market while aiming to limit downside risk through a buffer against losses.
🎯 Investment Strategy
The ETF tracks an index that provides exposure to large-cap U.S. stocks, while also incorporating a buffer that aims to limit losses to between 2.5% and 15% over a quarterly period. This is achieved through a combination of equity holdings and options-based risk management strategies.
✨ Key Features
- Seeks to provide U.S. equity market exposure with a built-in buffer against losses of 2.5% to 15% per quarter
- Uses a combination of equity holdings and options-based strategies to manage risk
- Quarterly reset of the buffer level to maintain the targeted downside protection
- Low expense ratio of 0.00%
⚠️ Primary Risks
- Market risk: The ETF's performance is tied to the U.S. equity market, and it will be subject to the same volatility and downside risk as the broader market
- Options-based risk: The use of options-based strategies introduces additional risks, such as counterparty risk and the potential for losses beyond the buffer level
- Liquidity risk: As a relatively new and small ETF, DHDG may have lower trading volume and liquidity compared to larger, more established funds
- Tracking error risk: The ETF may not perfectly track its underlying index due to the complexities of the options-based strategy
👤 Best For
The FT Vest U.S. Equity Quarterly 2.5 to 15 Buffer ETF may be suitable for investors seeking U.S. equity exposure with a level of downside protection, particularly those with a moderate risk tolerance and a medium-term investment horizon. However, the fund's unique structure and use of options-based strategies make it a more complex investment, so it may not be appropriate for all investors.