BUFQ Profile
FT CBOE Vest Fund of Nasdaq ViII (Ticker: BUFQ) is an exchange-traded fund (ETF) designed to provide investors with exposure to the Nasdaq-100 Index while employing a buffer strategy against losses. Managed by First Trust Advisors L.P., the fund aims to track the performance of the CBOE Nasdaq-100 BuyWrite V3 Index (Ticker: BVQ), which seeks to mitigate downside risk through options strategies. BUFQ utilizes a systematic approach to enhance potential returns by writing covered call options on a portion of the underlying index securities.
The ETF primarily invests in a diversified portfolio of large-cap technology and growth companies listed on the Nasdaq-100 Index. This index includes well-known multinational firms across sectors such as technology, consumer discretionary, and healthcare. By strategically selling call options, BUFQ seeks to generate income and cushion against market downturns, making it a potential choice for investors seeking reduced volatility while participating in the growth potential of leading Nasdaq-listed companies.
Investors considering BUFQ should note its unique strategy of balancing growth and risk mitigation through options. As with any ETF, potential investors should carefully review its prospectus and disclosures to understand its specific investment objectives, risks, and costs. BUFQ offers exposure to a diverse basket of high-performing stocks within the Nasdaq-100, with the added benefit of a buffer strategy designed to provide downside protection during market fluctuations.
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