FFEB
FT Vest U.S. Equity Buffer ETF - February
📎 Investment Objective
The FT Vest U.S. Equity Buffer ETF - February seeks to provide investors with a buffer against losses in the U.S. equity market during a specified 12-month period, while providing upside participation.
Overview
ETF tracking FT Vest U.S. Equity Buffer ETF - February
Performance
Price Chart
Investment Summary
📎 Investment Objective
The FT Vest U.S. Equity Buffer ETF - February seeks to provide investors with a buffer against losses in the U.S. equity market during a specified 12-month period, while providing upside participation.
🎯 Investment Strategy
The ETF uses a defined outcome strategy, investing in a portfolio of FT Vest U.S. Equity Buffer ETF options contracts that are designed to provide a buffer against the first 10-15% of losses in the U.S. equity market over a 12-month period, while allowing for participation in a portion of the market's gains.
✨ Key Features
- Defined outcome strategy providing a buffer against initial losses in the U.S. equity market
- Resets annually in February to provide a new 12-month outcome period
- Potential for upside participation, subject to a cap, if the market rises
- Expense ratio of 0.00%
⚠️ Primary Risks
- Market risk - the ETF's returns are tied to the performance of the U.S. equity market
- Capped upside potential - the ETF's gains may be limited by the upside cap
- Reset risk - the buffer and upside cap reset annually, so investors may be subject to different levels of protection and participation
- Liquidity risk - the ETF's options-based strategy may result in lower liquidity compared to traditional equity ETFs
👤 Best For
This ETF may be suitable for investors seeking equity market exposure with a level of downside protection, who have a medium-term investment horizon and are comfortable with the reset risk and capped upside potential.