FAPR
FT Vest U.S. Equity Buffer ETF - April
📎 Investment Objective
The FT Vest U.S. Equity Buffer ETF - April seeks to provide investors with a buffer against the first 9% 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 Buffer ETF - April
Performance
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Investment Summary
📎 Investment Objective
The FT Vest U.S. Equity Buffer ETF - April seeks to provide investors with a buffer against the first 9% 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 buffer and upside exposure. The fund resets its buffer and exposure levels annually in April.
✨ Key Features
- Provides a 9% 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 above the 9% buffer
- Resets its buffer and exposure levels annually in April
- Has no management fees (0.00% expense ratio)
⚠️ 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
- Derivative risk - The use of options contracts to provide the buffer and upside exposure introduces additional risks
- Reset risk - The annual reset of the buffer and exposure levels may not align perfectly with an investor's time horizon
- Liquidity risk - As a new ETF with low assets under management, it may have lower trading volume and liquidity
👤 Best For
This ETF may be suitable for investors seeking equity market exposure with some downside protection, particularly those with a one-year investment horizon that aligns with the fund's annual reset. It could be used as a core or satellite holding in a diversified portfolio.