First Trust ETF Adjusts Anticipated Caps for Upcoming Target Period

The quarterly buffer ETF refines its strategy as the next investment period begins, balancing risk and return.

November 22, 2024

Anticipated Caps for New Target Outcome Period

The First Trust FT Vest Gold Strategy Quarterly Buffer ETF has unveiled its anticipated cap ranges for the upcoming Target Outcome Period. This period will commence on December 2, 2024, and run through February 28, 2025. These caps provide a framework for the maximum potential return investors could achieve during this timeframe.

According to the announcement, the anticipated cap range before fees and expenses will fall between 8.30% and 11.00%. After fees and expenses are accounted for, excluding costs such as brokerage commissions and taxes, the range narrows slightly to between 8.10% and 10.80%. The final cap figures will be determined and disclosed on the first day of the new Target Outcome Period and could differ from the current estimates based on prevailing market conditions.

This mechanism aligns with the fund's structured investment strategy, designed to manage risk while providing clarity and predictability to shareholders.

Strategic Benefits for Shareholders

The quarterly cap adjustments provide investors with a distinct approach to navigating market volatility. By setting clear expectations for potential returns within each Target Outcome Period, the fund supports informed decision-making tailored to investor risk tolerance and goals.

Shareholders are advised to review the finalized caps on December 2, 2024, as part of their strategic planning. The updated details will help them align their portfolios with the new parameters of the Target Outcome Period.

In a broader context, the supplement to the prospectus reinforces First Trust’s emphasis on transparency and consistent investor engagement. By regularly communicating updates, the fund ensures that investors remain informed about critical details impacting their investments.

For continued reference, investors should retain this latest supplement alongside the fund's prospectus, supporting long-term planning and investment evaluation.