First Trust Takes New Buffered ETF Angle

Today, First Trust added a new dimension to its offering of defined outcome ETFs with the launch of the FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June (XJUN).

The new fund aims to provide double exposure to any positive upside price performance of the SPDR S&P 500 ETF Trust (SPY) up to a pre-expenses cap of 6.15% while also protecting against up to 15% of downside performance during an outcome period ranging from today to June 17, 2022.

The fund comes with an expense ratio of 0.85% and lists on Cboe Global Markets.

Like all defined outcome ETFs, XJUN achieves its goals through the use of flexible exchange (FLEX) options.

First Trust's defined outcome offering also includes the FT Cboe Vest U.S. Equity Deep Buffer ETF – June (DJUN), which offers unleveraged exposure to SPY’s upside performance with a pre-expenses cap of 7.06% and protects against any losses greater than 5% up to 30%, and the FT Cboe Vest U.S. Equity Buffer ETF – June (FJUN), which tracks the price return of SPY up to a pre-expenses cap of 11.70% and protects against losses of up to 10%. XJUN represents a new direction for First Trust’s buffer ETFs in that it incorporates leveraged returns on the upside.

Contact Heather Bell at [email protected]