OCTM
FT Vest U.S. Equity Max Buffer ETF - October
📎 Investment Objective
The FT Vest U.S. Equity Max Buffer ETF - October seeks to provide investors with a buffer against losses in the U.S. equity market up to a certain level, while providing participation in the upside of the market.
Overview
ETF tracking FT Vest U.S. Equity Max Buffer ETF - October
Performance
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Investment Summary
📎 Investment Objective
The FT Vest U.S. Equity Max Buffer ETF - October seeks to provide investors with a buffer against losses in the U.S. equity market up to a certain level, while providing participation in the upside of the market.
🎯 Investment Strategy
The ETF uses a buffer strategy, where it aims to limit downside losses to a predetermined level (the 'buffer') while allowing investors to participate in a portion of the upside of the U.S. equity market. This is achieved through the use of options-based investments.
✨ Key Features
- Seeks to provide a buffer against losses in the U.S. equity market up to a certain level
- Participates in a portion of the upside of the U.S. equity market
- Utilizes an options-based investment strategy to achieve its objective
- Resets its buffer and participation levels on an annual basis in October
⚠️ Primary Risks
- Market risk: The ETF's performance is tied to the performance of the U.S. equity market, and it is subject to the same market fluctuations
- Options-based risk: The use of options-based investments introduces additional risks, such as counterparty risk and liquidity risk
- Reset risk: The ETF's buffer and participation levels reset annually, which may result in changes to the fund's risk/return profile
- Limited performance history: As a new ETF, it has a limited track record to evaluate its long-term performance
👤 Best For
The FT Vest U.S. Equity Max Buffer ETF - October may be suitable for investors seeking exposure to the U.S. equity market with a level of downside protection, and who have a medium to long-term investment horizon. Investors should be comfortable with the risks associated with options-based strategies and understand that the buffer and participation levels may change annually.