NOVM
FT Vest U.S. Equity Max Buffer ETF - November
📎 Investment Objective
The FT Vest U.S. Equity Max Buffer ETF - November (NOVM) seeks to provide investors with exposure to the U.S. equity market while aiming to limit downside risk during market downturns.
Overview
ETF tracking FT Vest U.S. Equity Max Buffer ETF - November
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Investment Summary
📎 Investment Objective
The FT Vest U.S. Equity Max Buffer ETF - November (NOVM) seeks to provide investors with exposure to the U.S. equity market while aiming to limit downside risk during market downturns.
🎯 Investment Strategy
NOVM is a buffer ETF that uses options strategies to provide a buffer against the first 10-15% of losses in the U.S. equity market, as represented by the S&P 500 Index. The fund holds a portfolio of U.S. equities and purchases put options to help limit downside risk.
✨ Key Features
- Seeks to provide exposure to the U.S. equity market with a buffer against the first 10-15% of losses
- Uses options strategies to limit downside risk during market downturns
- Resets the buffer protection on a monthly basis, providing ongoing risk management
- Low expense ratio of 0.00%
⚠️ Primary Risks
- Market risk: The fund's value will fluctuate with the U.S. equity market and may experience significant volatility
- Options risk: The use of options strategies introduces additional risks, including the potential for losses greater than the amount invested
- Liquidity risk: The fund may have difficulty buying or selling certain securities, particularly during periods of market stress
- Concentration risk: The fund's focus on a specific market segment may result in greater volatility than a more diversified investment
👤 Best For
NOVM may be suitable for investors seeking exposure to the U.S. equity market with a level of downside protection, particularly those with a moderate risk tolerance and a medium-term investment horizon. The fund's buffer feature may be attractive to investors looking to limit their downside risk during market downturns.