First Trust has announced the launch of a Nasdaq-100 buffer ETF on the London Stock Exchange.
Buffer ETFs aim to allow investors to participate in potential growth while protecting them from a level of losses.
The First Trust Vest Nasdaq-100 Moderate Buffer UCITS ETF seeks to provide returns that match the price return of the Nasdaq-100, up to a predetermined upside cap, while providing 15% downside protection through a built-in buffer mechanism.
The strategy aims to reduce volatility for a more stable growth trajectory, potentially preserving more capital during market shocks.
“We are excited to expand our range by bringing this innovative buffer strategy to European investors,” said Rupert Haddon, managing director at First Trust Global Portfolios.
“In today’s volatile market environment, we believe QSEP offers a compelling solution for investors seeking exposure to leading Nasdaq-100 companies while managing downside risk.”
