DOCT
FT Vest U.S. Equity Deep Buffer ETF - October
📎 Investment Objective
The FT Vest U.S. Equity Deep Buffer ETF - October 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 participating in the upside of the market up to a predetermined cap.
Overview
ETF tracking FT Vest U.S. Equity Deep Buffer ETF - October
Performance
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Investment Summary
📎 Investment Objective
The FT Vest U.S. Equity Deep Buffer ETF - October 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 participating in the upside of the market up to a predetermined cap.
🎯 Investment Strategy
The ETF achieves its objective by investing in a portfolio of U.S. equity securities and purchasing put options on the S&P 500 Index. The put options provide the buffer against the first 10% of losses, while the equity exposure allows for participation in market gains up to a predetermined cap.
✨ Key Features
- Seeks to provide a 10% buffer against losses in the U.S. equity market over a one-year period
- Participates in market upside up to a predetermined cap
- Resets the buffer and cap annually in October
- Designed to help manage downside risk while providing some upside potential
⚠️ Primary Risks
- Market risk: The ETF's performance is tied to the performance of the U.S. equity market, and it may decline in value if the market falls
- Option risk: The performance of the put options used to provide the buffer may not perform as expected, potentially reducing the effectiveness of the buffer
- Cap risk: The predetermined upside cap may limit the ETF's participation in market gains
- Liquidity risk: The ETF may have limited trading volume, which could affect an investor's ability to buy or sell shares
👤 Best For
The FT Vest U.S. Equity Deep Buffer ETF - October may be suitable for investors seeking to participate in the U.S. equity market with a level of downside protection, and who have a medium-term investment horizon and a moderate risk tolerance.