First Trust has announced the launch of the actively managed Trust Vest U.S. Equity Moderate Buffer UCITS ETF (GFEB) on the London Stock Exchange.
The fund is set up to take “advantage of the growth of the S&P 500” with a cap of 13.86%, with a pre-set 15% downside protection. It is part of First Trust’s Target Outcome ETF range, while holds over $16bn (£) in net assets as of the end of 2023. GFEB is the second UCITS fund in the suite.
The fund has a set outcome period until February 2025, where cap and buffer will be reassessed based on the market, but the fund can be held indefinitely.
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Funds will be invested into Flexible Exchange Options (FLEX options), which allow for customised contract terms often allowing for increased liquidity.
Derek Fulton, CEO at First Trust Global Portfolios, said: “For investors, GFEB represents the third ETF in our quarterly series of scheduled ETFs for our Target Outcome suite.
“Mitigating downside risk remains a top concern for many investors, which helps explain the growing popularity of buffered ETFs. The launch of GFEB continues to show our commitment to offering European investors innovative solutions to navigating today’s market.”
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