FT Cboe Vest U.S. Equity Deep Buffer ETF - November (DNOV)
Investment Objective/Strategy - The investment objective of the FT Cboe Vest U.S. Equity Deep Buffer ETF - November is to seek to provide investors with returns (before fees, expenses and taxes) that match those of the SPDR® S&P 500® ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 7.75% (before fees, expenses and taxes) and 6.90% (after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee), while providing a buffer against Underlying ETF losses between -5% and -30% (before fees, expenses and taxes) over the period from November 23, 2020 to November 19, 2021. Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange® Options that reference the performance of the SPDR® S&P 500® ETF Trust. The terms of the Fund's investment objective described above are with reference to the price return of the Underlying ETF.
There can be no assurance that the Fund's investment objectives will be achieved.
Fund Overview
TickerDNOV
Fund TypeTarget Outcome Strategies
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon
Portfolio Manager/Sub-AdvisorCBOE Vest Financial, LLC
CUSIP33740F839
ISINUS33740F8398
Intraday NAVDNOVIV
Fiscal Year-End08/31
ExchangeCboe BZX
Inception11/15/2019
Inception Price$30.55
Inception NAV$30.55
Expense Ratio0.85%
Current Fund Data (as of 2/26/2021)
Closing NAV1$33.45
Closing Market Price2$33.44
Bid/Ask Midpoint$33.43
Bid/Ask Discount0.06%
30-Day Median Bid/Ask Spread30.30%
Total Net Assets$95,330,546
Outstanding Shares2,850,002
Daily Volume2,600
Average 30-Day Daily Volume17,995
Closing Market Price 52-Week High/Low$33.69 / $26.85
Closing NAV 52-Week High/Low$33.74 / $26.59
Number of Holdings (excluding cash)4
NAV History (Since Inception)
Past performance is not indicative of future results.
Top Holdings (as of 2/26/2021)*
Holding Percent
2021-11-19 SPDR® S&P 500® ETF Trust C 3.54 102.96%
2021-11-19 SPDR® S&P 500® ETF Trust P 337.56 4.82%
2021-11-19 SPDR® S&P 500® ETF Trust P 248.73 -1.39%
2021-11-19 SPDR® S&P 500® ETF Trust C 382.87 -7.33%

* Excluding cash.  Holdings are subject to change.

Bid/Ask Premium/Discount (as of 2/26/2021)
  2020 Q1 2021 Q2 2021 Q3 2021
Days Traded at Premium 140 5 --- ---
Days Traded at Discount 113 33 --- ---
Outcome Period Performance
Outcome Period Values
Series November
Reference Asset SPDR S&P 500 ETF Trust
Cap (Net) 7.75% (6.90%)
Buffer Start (Net) -5.00% (-5.85%)
Buffer End (Net) -30.00% (-30.85%)
Outcome Period 11/23/2020 - 11/19/2021
Current Values
(as of 2/26/2021)
Fund Value/Return $33.45 / 2.01%
Reference Asset Value/Return $380.36 / 7.04%
Remaining Outcome Period 266 days
Remaining Cap (Net)
Reference Asset Return to Realize the Cap
0.66%
5.63% (4.80%)
Remaining Buffer (Net)
Reference Asset to Buffer End
34.61%
+ Unrealized Option Payoff
0.00%
+ Downside Before Buffer
-6.87%
Remaining Buffer (Net)
27.74% (26.91%)
27.74% (26.91%)
   
Reference Asset and Fund Values
Cap Reference Asset Value $382.87
Buffer Start Reference Asset Value $337.56
Buffer End Reference Asset Value $248.73
Cap Fund Value^ $35.33
Buffer Start Fund Value^ $31.15
Buffer End Fund Value^ $31.15
Definitions
Net - After fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the Fund's management fee.
Fund Value/Return - The most recent closing NAV of the Fund, and the NAV return of the Fund since the start of the Outcome Period. An intraday bid/ask midpoint will be shown during hours when the market is open.
Reference Asset Value/Return - The most recent value and the price return of the Reference Asset since the start of the Outcome Period.
Remaining Outcome Period - The number of days remaining until the end of the Outcome Period.
Remaining Cap - Based on the Fund's current NAV, the best potential return if held to the end of the Outcome Period, assuming the Reference Asset meets or exceeds the Cap Reference Asset Value.
Reference Asset Return to Realize the Cap - The return of the Reference Asset currently needed in order for the Fund to realize the return of the Remaining Cap.
Remaining Buffer - The current amount of the Fund's stated buffer remaining which is the sum of Downside Before Buffer, Reference Asset to Buffer End, and Unrealized Option Payoff.
Reference Asset to Buffer End - The loss of the Reference Asset from its current value to the Buffer End Reference Asset Value.
Unrealized Option Payoff - Based on the Fund's current NAV, the potential investment outcome of the Fund, before fees and expenses, if held to the end of the Target Outcome period assuming the current Reference Asset Value quoted above remains unchanged. This is due to the intrinsic value of the underlying options positions that create the Fund's buffer range.
Downside Before Buffer - Based on the Fund value, the amount of Fund loss that can be incurred prior to the buffer taking effect.
The "Reference Asset and Fund Values" represent the values that trigger the Cap and the Start and End of the Buffer range for the respective Reference Asset and Fund.
^ The Cap Fund Value, Buffer Start Fund Value and Buffer End Fund Value are all calculated before fees and expenses.
The Outcome Period Values are shown both gross and net of fees. The outcome values may only be realized for an investor who holds shares for the outcome period shown.
Performance data quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares when sold or redeemed, may be worth more or less than their original cost.
Month End Performance (as of 1/29/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception4
Fund Performance *
Net Asset Value (NAV) 4.78% -0.90% 6.30% N/A N/A N/A 6.79%
After Tax Held 4.78% -0.90% 6.30% N/A N/A N/A 6.79%
After Tax Sold 2.83% -0.53% 3.73% N/A N/A N/A 5.18%
Market Price 5.11% -0.78% 6.67% N/A N/A N/A 6.87%
Index Performance **
S&P 500® Index 13.59% -1.11% 15.15% N/A N/A N/A 15.47%
Quarter End Performance (as of 12/31/2020)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception4
Fund Performance *
Net Asset Value (NAV) 5.20% 7.54% 7.54% N/A N/A N/A 8.19%
After Tax Held 5.20% 7.54% 7.54% N/A N/A N/A 8.19%
After Tax Sold 3.08% 4.46% 4.46% N/A N/A N/A 6.24%
Market Price 5.00% 7.65% 7.65% N/A N/A N/A 8.16%
Index Performance **
S&P 500® Index 11.69% 16.26% 16.26% N/A N/A N/A 17.90%

*Performance data quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares when sold or redeemed, may be worth more or less than their original cost.

After Tax Held returns represent return after taxes on distributions. Assumes shares have not been sold. After Tax Sold returns represent the return after taxes on distributions and the sale of fund shares. Returns do not represent the returns you would receive if you traded shares at other times. Market Price returns are determined by using the midpoint of the national best bid offer price ("NBBO") as of the time that the fund's NAV is calculated. Returns are average annualized total returns, except those for periods of less than one year, which are cumulative.

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.

**Indexes do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance shown. Indexes are unmanaged and an investor cannot invest directly in an index.

S&P 500® Index - The Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance. The returns shown are price only.
Footnotes
1 The NAV represents the fund's net assets (assets less liabilities) divided by the fund's outstanding shares .
2 Fund shares are purchased and sold on an exchange at their market price rather than net asset value (NAV), which may cause the shares to trade at a price greater than NAV (premium) or less than NAV (discount).
3 The median bid-ask spread is calculated by identifying the national best bid and national best offer ("NBBO") for the fund as of the end of each 10 second interval during each trading day of the last 30 calendar days and dividing the difference between each such bid and offer by the midpoint of the NBBO. The median of those values is identified and that value is expressed as a percentage rounded to the nearest hundredth.
4 Inception Date is 11/15/2019

You should consider the fund's investment objectives, risks, and charges and expenses carefully before investing. You can download a prospectus or summary prospectus, or contact First Trust Portfolios L.P. at 1-800-621-1675 to request a prospectus or summary prospectus which contains this and other information about the fund. The prospectus or summary prospectus should be read carefully before investing.

ETF Characteristics

The fund lists and principally trades its shares on the Cboe BZX Exchange, Inc..

Investors buying or selling fund shares on the secondary market may incur customary brokerage commissions. Market prices may differ to some degree from the net asset value of the shares. Investors who sell fund shares may receive less than the share's net asset value. Shares may be sold throughout the day on the exchange through any brokerage account. However, unlike mutual funds, shares may only be redeemed directly from the fund by authorized participants, in very large creation/redemption units. If the fund's authorized participants are unable to proceed with creation/redemption orders and no other authorized participant is able to step forward to create or redeem, fund shares may trade at a discount to the fund's net asset value and possibly face delisting.

Risk Considerations

The fund has characteristics unlike many other traditional investment products and may not be appropriate for all investors.

If the underlying ETF experiences gains during a target outcome period, the fund will not participate in those gains beyond the cap. Similarly, in the event an investor purchases fund shares after the first day of a target outcome period, the buffer the fund seeks to provide may not be available. The fund does not provide principal protection and an investor may experience significant losses on their investment, including loss of their entire investment.

The fund's shares will change in value, and you could lose money by investing in the fund. One of the principal risks of investing in the fund is market risk. Market risk is the risk that a particular security owned by the fund, fund shares or securities in general may fall in value. The fund is subject to management risk because they are actively managed portfolios. In managing the fund's investment portfolios, the advisor will apply investment techniques and risk analyses that may not have the desired result. There can be no assurance that the fund's investment objectives will be achieved. The outbreak of the respiratory disease designated as COVID-19 in December 2019 has caused significant volatility and declines in global financial markets, which have caused losses for investors. The COVID-19 pandemic may last for an extended period of time, and will continue to impact the economy for the foreseeable future.

A fund may be a constituent of one or more indices which could greatly affect a fund's trading activity, size and volatility.

The use of options and other derivatives can lead to losses because of adverse movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of the derivatives.

If the reference asset experiences gains during a target outcome period, the fund will not participate in those gains beyond the cap. In the event an investor purchases fund shares after the first day of a target outcome period and the fund has risen in value to a level near to the cap, there may be little or no ability for that investor to experience an investment gain on their fund shares.

The fund may invest in FLEX Options that reference an ETF, which subjects the fund to certain of the risks of owning shares of an ETF as well as the types of instruments in which the reference ETF invests.

Because the fund may hold FLEX Options that reference the index and/or reference ETFs, the fund has exposure to the equity securities markets.

The FLEX Options held by the fund will be exercisable at the strike price only on their expiration date. Prior to the expiration date, the value of the FLEX Options will be determined based upon market quotations or other recognized pricing methods.

There can be no guarantee that a liquid secondary trading market will exist for the FLEX Options and FLEX options may be less liquid than exchange-traded options.

The fund's investment strategy is designed to deliver returns that match the reference asset if a fund's shares are bought on the day on which the fund enters into the FLEX Options (i.e., the first day of a target outcome period) and held for the entire target outcome period, subject to a pre-determined cap, or until those FLEX Options expire at the end of the target outcome period. If an investor does not hold its fund shares for an entire target outcome period, the returns realized by that investor may not match those a fund seeks to achieve. In the event an investor purchases fund shares after the first day of a target outcome period or sells shares prior to the expiration of the target outcome period, the value of that investor's investment in fund shares may not be buffered against a decline in the value of the reference asset and may not participate in a gain in the value of the reference asset up to the cap for the investor's investment period.

A new cap is established at the beginning of each target outcome period and is dependent on prevailing market conditions. As a result, the cap may rise or fall from one target outcome period to the next and is unlikely to remain the same for consecutive target outcome periods.

The fund may, under certain circumstances, effect a significant portion of creations and redemptions for cash rather than in-kind securities. As a result, the fund may be less tax-efficient.

High portfolio turnover may cause a fund's performance to be less than expected.

A fund may be subject to the risk that a counterparty will not fulfill its obligations which may result in significant financial loss to a fund.

As the use of Internet technology has become more prevalent in the course of business, the fund has become more susceptible to potential operational risks through breaches in cyber security.

The fund currently has fewer assets than larger funds, and like other relatively new funds, large inflows and outflows may impact the fund's market exposure for limited periods of time.

The fund intends to qualify as "regulated investment companies" ("RICs"), however, the federal income tax treatment of certain aspects of the proposed operations of the funds are not entirely clear. If, in any year, the funds fail to qualify as RICs under the applicable tax laws, the funds would be taxed as ordinary corporations.

The fund is classified as "non-diversified" and may invest a relatively high percentage of its assets in a limited number of issuers. As a result, the fund may be more susceptible to a single adverse economic or regulatory occurrence affecting one or more of these issuers, experience increased volatility and be highly concentrated in certain issuers.

First Trust Advisors L.P. is the adviser to the fund. First Trust Advisors L.P. is an affiliate of First Trust Portfolios L.P., the fund's distributor.

Cboe® is a registered trademark of Cboe Exchange, Inc., which has been licensed for use in the name of the fund. The fund is not sponsored, endorsed, sold or marketed by Cboe Exchange, Inc. or any of its affiliates ("Cboe") or their respective third-party providers, and Cboe and its third-party providers make no representation regarding the advisability of investing in the funds and shall have no liability whatsoever in connection with the fund.
Not FDIC Insured • Not Bank Guaranteed • May Lose Value