FSEP
FT Vest U.S. Equity Buffer ETF - September
📎 Investment Objective
The FT Vest U.S. Equity Buffer ETF - September (FSEP) 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 participation in any positive returns of the market up to a cap.
Overview
ETF tracking FT Vest U.S. Equity Buffer ETF - September
Performance
Price Chart
Investment Summary
📎 Investment Objective
The FT Vest U.S. Equity Buffer ETF - September (FSEP) 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 participation in any positive returns of the market up to a cap.
🎯 Investment Strategy
FSEP aims to achieve its objective by investing in a portfolio of U.S. equity securities and purchasing put options on the S&P 500 Index. The put options provide the buffer against the first 10% of losses, while the equity portfolio provides participation in positive market returns up to a predetermined cap.
✨ Key Features
- Seeks to provide a 10% buffer against losses in the U.S. equity market over a one-year period
- Participates in positive market returns up to a predetermined cap
- Resets the buffer and cap annually in September
- Expense ratio of 0.00%
⚠️ Primary Risks
- Market risk: The ETF's performance is tied to the performance of the U.S. equity market, and it may decline in value if the market falls
- Option risk: The value of the put options may decline, reducing the buffer protection
- Cap risk: The ETF's upside participation is limited by the predetermined cap, which may be lower than the actual market return
- Liquidity risk: The ETF may have limited trading volume, which could affect an investor's ability to buy or sell shares
👤 Best For
FSEP may be suitable for investors seeking equity market exposure with a level of downside protection, who have a medium-term investment horizon and a moderate risk tolerance. The ETF's buffer and cap features make it most appropriate for investors who are concerned about potential market declines but still want to participate in some of the upside.