FOCT
FT Vest U.S. Equity Buffer ETF - October
📎 Investment Objective
The FT Vest U.S. Equity Buffer ETF - October seeks to provide investors with a buffer against downside losses in the U.S. equity market over a one-year period, while providing upside participation.
Overview
ETF tracking FT Vest U.S. Equity Buffer ETF - October
Performance
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Investment Summary
📎 Investment Objective
The FT Vest U.S. Equity Buffer ETF - October seeks to provide investors with a buffer against downside losses in the U.S. equity market over a one-year period, while providing upside participation.
🎯 Investment Strategy
The ETF uses a defined outcome strategy, investing in a portfolio of U.S. equity index options that are designed to provide a buffer against the first 10-15% of losses in the underlying U.S. equity index over a one-year period, while allowing for participation in a portion of the index's gains.
✨ Key Features
- Defined outcome strategy with a buffer against initial losses in the U.S. equity market
- One-year outcome period, resetting each October
- Potential for upside participation, subject to a cap on gains
- Expense ratio of 0.00%
⚠️ 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 as the underlying index
- Capped upside potential: The ETF's gains may be limited by the cap on returns, which can vary from year to year
- Holding period risk: Investors who do not hold the shares for the full one-year outcome period may not achieve the intended buffer or upside participation
- Counterparty risk: The ETF's options-based strategy exposes it to the creditworthiness of the options counterparties
👤 Best For
The FT Vest U.S. Equity Buffer ETF - October may be suitable for investors seeking equity market exposure with a level of downside protection, who have a one-year investment horizon and are willing to forgo some upside potential in exchange for the buffer against initial losses.