YSEP Profile
The FT Cboe Vest International Equity Buffer ETF - September employs a sophisticated investment strategy that focuses on international equity exposure through the use of FLexible EXchange Options (FLEX Options). Under normal market conditions, the fund dedicates nearly all of its assets to FLEX Options tied to the price performance of the iShares MSCI EAFE ETF (the underlying ETF). This underlying ETF provides investors with access to a broad range of large- and mid-cap companies across Europe, Australasia, and the Far East (EAFE), thereby capturing diverse international market dynamics.
FLEX Options are advanced financial instruments that offer significant customization. These options allow investors to tailor key contract terms, such as exercise prices, option styles, and expiration dates, to better meet their specific investment goals. The flexibility inherent in FLEX Options enables the fund to implement a targeted approach to managing exposure to international equities, balancing potential risks and returns in line with market conditions.
The funds strategy aims to deliver a degree of protection against downside risk while maintaining the potential to benefit from the performance of the international equity markets. By concentrating its investments in FLEX Options based on the underlying ETF, the fund seeks to provide investors with a structured exposure that includes a buffer against certain levels of market decline. This protective measure is designed to enhance the funds risk management profile compared to traditional equity investments.
It is important to note that the FT Cboe Vest International Equity Buffer ETF - September is non-diversified, meaning it does not spread its assets across a broad spectrum of securities. Instead, the fund focuses on a concentrated investment strategy using FLEX Options related to the underlying ETF. This approach allows the fund to execute its specific investment strategy with precision but also introduces risks associated with its reliance on a single financial instrument and a limited number of underlying assets.
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