FJAN
FT Vest U.S. Equity Buffer ETF - January
📎 Investment Objective
The FT Vest U.S. Equity Buffer ETF - January (FJAN) 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 Buffer ETF - January
Performance
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Investment Summary
📎 Investment Objective
The FT Vest U.S. Equity Buffer ETF - January (FJAN) 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
FJAN 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
- Relatively low expense ratio of 0.00%
⚠️ Primary Risks
- Market risk: The fund's performance is tied to the U.S. equity market, and it may experience losses if the market declines
- Derivative risk: The use of options contracts to achieve the buffer and upside exposure introduces additional risks
- Reset risk: The fund's buffer and exposure levels reset annually, which may not align with an investor's desired risk profile
- Liquidity risk: As a newer fund, FJAN may have lower trading volume and liquidity compared to more established ETFs
👤 Best For
FJAN may be suitable for investors seeking equity market exposure with a level of downside protection, particularly those with a medium-term investment horizon and a moderate risk tolerance. However, the fund's reset mechanism and derivative usage may make it less suitable for investors with shorter time horizons or a lower risk appetite.