DJAN
FT Vest U.S. Equity Deep Buffer ETF - January
📎 Investment Objective
The FT Vest U.S. Equity Deep Buffer ETF - January 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 - January
Performance
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Investment Summary
📎 Investment Objective
The FT Vest U.S. Equity Deep Buffer ETF - January 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
The ETF achieves its objective by investing in a portfolio of U.S. equity securities and options contracts designed to provide the desired buffer and upside exposure. The fund resets its buffer and exposure levels annually in January.
✨ Key Features
- Provides a 10% buffer against losses in the U.S. equity market over a one-year period
- Offers upside exposure to the U.S. equity market's performance
- Resets buffer and exposure levels annually in January
- Low expense ratio of 0.00%
⚠️ Primary Risks
- Market risk: The ETF's performance is tied to the U.S. equity market, and it is subject to the same volatility and downside risk
- Derivative risk: The use of options contracts introduces additional risks, such as counterparty risk and liquidity risk
- Reset risk: The annual reset of the buffer and exposure levels may not align with an investor's desired holding period
- Limited performance history: As a new fund, it lacks a long-term track record to evaluate its effectiveness
👤 Best For
This ETF may be suitable for investors seeking downside protection in the U.S. equity market, while still maintaining some upside exposure. It may be particularly appealing to those with a one-year investment horizon who are willing to accept the risks associated with the fund's options-based strategy.