FMAY
FT Vest U.S. Equity Buffer ETF - May
📎 Investment Objective
The FT Vest U.S. Equity Buffer ETF - May (FMAY) seeks to provide investors with a buffer against the first 9% of losses in the S&P 500 Index over a one-year period, while providing upside exposure to the index up to a predetermined cap.
Overview
ETF tracking FT Vest U.S. Equity Buffer ETF - May
Performance
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Investment Summary
📎 Investment Objective
The FT Vest U.S. Equity Buffer ETF - May (FMAY) seeks to provide investors with a buffer against the first 9% of losses in the S&P 500 Index over a one-year period, while providing upside exposure to the index up to a predetermined cap.
🎯 Investment Strategy
FMAY achieves its objective by investing in a portfolio of options on the S&P 500 Index. The fund uses a defined outcome strategy, where it purchases put options to provide the downside buffer and call options to capture upside returns up to a cap. The options are reset annually in May.
✨ Key Features
- Provides a 9% buffer against losses in the S&P 500 Index over a one-year period
- Offers upside exposure to the S&P 500 Index up to a predetermined cap
- Resets the options portfolio annually in May
- Has a 0.00% expense ratio
⚠️ Primary Risks
- Market risk: The fund's performance is tied to the S&P 500 Index, and it will be subject to the same market fluctuations
- Capped upside potential: The fund's returns are capped, limiting the upside exposure to the S&P 500 Index
- Counterparty risk: The fund is exposed to the creditworthiness of the options counterparties
- Liquidity risk: The options market may experience reduced liquidity, which could impact the fund's ability to execute trades
👤 Best For
FMAY may be suitable for investors seeking equity market exposure with a level of downside protection, particularly those with a moderate risk tolerance and a one-year investment horizon. The fund's defined outcome strategy and annual reset may appeal to investors looking for a more structured approach to equity investing.