FOCT Profile
The FT Cboe Vest U.S. Equity Buffer ETF - October (FOCT) is an exchange-traded fund primarily focused on large-cap equity investments. Launched on October 16, 2020, and issued by First Trust, the fund is designed to provide investors with specific buffered losses and capped gains in relation to the SPDR S&P 500 ETF Trust over a defined holding period. FOCT aims to offer a balanced investment approach, delivering both risk mitigation and growth potential through its structured investment strategy.
FOCT employs an actively managed strategy that leverages options and collateral to achieve its buffering objectives. The fund utilizes a combination of put and call options to create a buffer against significant market downturns while capping potential gains. This methodology allows investors to participate in the equity market's upside while protecting against substantial losses, making it an attractive option during periods of market volatility and uncertainty.
First Trust, the issuer of FOCT, has a reputation for innovative investment solutions and expertise in options-based strategies. The construction of the buffer mechanism within FOCT reflects the company's commitment to providing investors with customized products that align with their risk tolerance and investment goals. By integrating advanced options strategies, FOCT aims to deliver a more predictable investment outcome, appealing particularly to conservative investors and those nearing retirement.
FOCT is part of First Trust's comprehensive suite of buffer ETFs, each designed to offer varying levels of risk protection and growth potential. These funds cater to a diverse range of investors seeking U.S. equity market exposure with built-in protective features. The development and methodology behind FOCT and its counterpart funds underscore First Trust's dedication to offering strategic, innovative investment solutions tailored to the evolving needs of modern investors. This emphasis on risk management and customized investment strategies distinguishes First Trust in the competitive ETF landscape.
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