XIDE
FT Vest U.S. Equity Buffer & Premium Income ETF - December
📎 Investment Objective
The FT Vest U.S. Equity Buffer & Premium Income ETF - December seeks to provide investors with a buffer against downside losses in the U.S. equity market while also generating income through a covered call strategy.
Overview
ETF tracking FT Vest U.S. Equity Buffer & Premium Income ETF - December
Performance
Price Chart
Investment Summary
📎 Investment Objective
The FT Vest U.S. Equity Buffer & Premium Income ETF - December seeks to provide investors with a buffer against downside losses in the U.S. equity market while also generating income through a covered call strategy.
🎯 Investment Strategy
The ETF invests in a portfolio of large-cap U.S. stocks and uses an options overlay to provide a buffer against the first 10-15% of losses in the underlying equity portfolio. It also writes call options on the portfolio to generate premium income.
✨ Key Features
- Seeks to provide downside protection through a buffer against the first 10-15% of losses in the underlying equity portfolio
- Generates income through a covered call options strategy
- Resets the buffer and call option parameters annually in December
- Relatively low 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 downturns
- Option strategy risk - The options overlay may not perform as expected and could result in losses
- Concentration risk - The ETF is focused on large-cap U.S. stocks, limiting diversification
- Liquidity risk - As a new ETF, it may have lower trading volume and liquidity
👤 Best For
This ETF may be suitable for investors seeking equity market exposure with some downside protection and income generation, particularly those with a medium-term investment horizon who are willing to accept the risks associated with the options overlay strategy.