DJUN
FT Vest U.S. Equity Deep Buffer ETF - June
📎 Investment Objective
The FT Vest U.S. Equity Deep Buffer ETF - June 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 - June
Performance
Price Chart
Investment Summary
📎 Investment Objective
The FT Vest U.S. Equity Deep Buffer ETF - June seeks to provide investors with a buffer against losses in the U.S. equity market during a specified 12-month period.
🎯 Investment Strategy
The ETF uses a defined outcome strategy, aiming to provide a buffer against the first 10-15% of losses in the S&P 500 Index over a 12-month period. It achieves this by investing in a portfolio of FT Cboe Vest U.S. Equity Deep Buffer ETF - June options contracts.
✨ Key Features
- Defined outcome strategy with a 10-15% buffer against losses in the S&P 500 over a 12-month period
- Resets annually in June to provide a new 12-month outcome period
- Expense ratio of 0.00%
- Low assets under management as a new and relatively unknown fund
⚠️ Primary Risks
- Market risk - the ETF's performance is tied to the U.S. equity market and can decline in value if the market falls
- Opportunity risk - the buffer limits upside potential, so investors may miss out on full market gains
- Liquidity risk - as a new and small fund, trading volume and liquidity may be limited
- Counterparty risk - the fund's options-based strategy exposes it to the creditworthiness of its counterparties
👤 Best For
This ETF may be suitable for investors seeking downside protection in U.S. equities, who are willing to forgo some upside potential in exchange for a buffer against losses. It may be most appropriate for those with a medium-term investment horizon and moderate risk tolerance.