QSPT Profile
The FT Cboe Vest NASDAQ-100 Buffer ETF - September is designed to provide investors with tailored exposure to the performance of the Invesco QQQ TrustSM, Series 1, while incorporating a buffer strategy to manage potential downside risks. Under normal market conditions, the fund allocates a substantial portion of its assets to FLEX Options, which are customized equity or index options traded on exchanges. These options offer unique flexibility in terms of exercise prices, contract styles, and expiration dates, allowing for precise alignment with the performance of the underlying ETF.
FLEX Options are particularly notable for their customization capabilities, enabling investors to tailor the options to their specific investment needs and market outlook. This customization includes adjusting key parameters such as strike prices and expiration terms, which can help align the funds performance with strategic investment goals. The use of FLEX Options in the fund provides a means to achieve exposure to the NASDAQ-100 Index while implementing a risk management strategy designed to cushion against market volatility.
The underlying strategy involves a buffer that aims to mitigate losses up to a certain percentage of decline in the performance of the NASDAQ-100 Index. This approach is geared towards investors who seek to participate in the potential upside of the NASDAQ-100 Index while limiting their exposure to significant losses. By investing in FLEX Options, the fund enhances its ability to deliver on this strategy, offering a structured approach to managing risk while maintaining exposure to a broad range of leading technology and growth-oriented companies.
As a non-diversified fund, the FT Cboe Vest NASDAQ-100 Buffer ETF - September focuses its investments exclusively on the FLEX Options linked to the Invesco QQQ TrustSM, Series 1. This concentrated strategy is intended to provide investors with a high degree of specificity in their exposure to the NASDAQ-100 Index while incorporating the buffer mechanism to address downside risk. Investors in this fund benefit from a specialized investment approach that combines the flexibility of FLEX Options with a strategic risk management framework, targeting a refined balance between risk and return.
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