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FT Cboe Vest Buffered Allocation Defensive ETF (BUFT)
  • 2021 Estimated Capital Gain Distributions
    Certain First Trust Exchange-Traded Funds are expected to pay a short term and/or long-term capital gain distribution in December. For a list of exchange-traded funds expected to pay a capital gain distribution, please click here. Final determination of the source and tax status of all distributions paid in the current year are to be made after year-end and could differ from the expectations noted above.
Investment Objective/Strategy - The investment objective of the FT Cboe Vest Buffered Allocation Defensive ETF (the "Fund") is to seek to provide investors with capital preservation. The Fund seeks to achieve its investment objective by investing in a portfolio of exchange-traded funds ("ETFs") that seek to provide investors with returns (before fees and expenses) based on the price return of the SPDR® S&P 500® ETF Trust ("SPY"), up to a predetermined cap, while providing a defined buffer against losses of SPY over a defined one-year period (the "Underlying ETFs"). Under normal market conditions, the Fund will invest substantially all of its assets in Underlying ETFs. The Fund and each Underlying ETF are advised by First Trust Advisors L.P. ("First Trust" or the "Advisor") and sub-advised by Cboe Vest Financial LLC ("Cboe Vest" or the "Sub-Advisor"). PDR Services, LLC ("PDR") serves as SPY's sponsor. The investment objective of SPY is to seek to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P 500® Index. Unlike the Underlying ETFs, the Fund itself does not pursue a defined outcome strategy. The buffer is only provided by the Underlying ETFs and the Fund itself does not provide any stated buffer against losses. The Fund will likely not receive the full benefit of the Underlying ETF buffers and could have limited upside potential. The Fund's returns may be limited to the caps of the Underlying ETFs.
There can be no assurance that the Fund's investment objectives will be achieved.
Fund Overview
TickerBUFT
Fund TypeTarget Outcome Strategies
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon Corp
Portfolio Manager/Sub-AdvisorCBOE Vest Financial, LLC
CUSIP33740U760
ISINUS33740U7607
Intraday NAVBUFTIV
Fiscal Year-End08/31
ExchangeCboe BZX
Inception10/26/2021
Inception Price$20.01
Inception NAV$20.01
Expense Ratio1.05%
Current Fund Data (as of 12/3/2021)
Closing NAV1$19.81
Closing Market Price2$19.81
Bid/Ask Midpoint$19.83
Bid/Ask Premium0.10%
30-Day Median Bid/Ask Spread30.20%
Total Net Assets$28,721,867
Outstanding Shares1,450,002
Daily Volume71,182
Average 30-Day Daily Volume62,073
Closing Market Price 52-Week High/Low$20.12 / $19.81
Closing NAV 52-Week High/Low$20.10 / $19.81
Number of Holdings (excluding cash)5
NAV History (Since Inception)
Past performance is not indicative of future results.
Top Holdings (as of 12/3/2021)*
Holding Percent
FT Cboe Vest U.S. Equity Buffer ETF - January 22.03%
FT Cboe Vest U.S. Equity Deep Buffer ETF - February 22.03%
FT Cboe Vest U.S. Equity Deep Buffer ETF - March 20.14%
FT Cboe Vest U.S. Equity Deep Buffer ETF - June 16.18%
FT Cboe Vest U.S. Equity Deep Buffer ETF - May 15.61%

* Excluding cash.  Holdings are subject to change.

Bid/Ask Premium/Discount (as of 12/3/2021)
  2020 Q1 2021 Q2 2021 Q3 2021
Days Traded at Premium --- --- --- ---
Days Traded at Discount --- --- --- ---
Month End Performance (as of 10/29/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception4
Fund Performance *
Net Asset Value (NAV) N/A N/A N/A N/A N/A N/A 0.00%
After Tax Held N/A N/A N/A N/A N/A N/A 0.00%
After Tax Sold N/A N/A N/A N/A N/A N/A 0.00%
Market Price N/A N/A N/A N/A N/A N/A 0.10%
Index Performance **
S&P 500® Index N/A N/A N/A N/A N/A N/A 0.67%
Quarter End Performance (as of 9/30/2021)
  3 Month YTD 1 Year 3 Year 5 Year 10 Year Since
Fund
Inception4
Fund Performance *
Net Asset Value (NAV) N/A N/A N/A N/A N/A N/A N/A
After Tax Held N/A N/A N/A N/A N/A N/A N/A
After Tax Sold N/A N/A N/A N/A N/A N/A N/A
Market Price N/A N/A N/A N/A N/A N/A N/A
Index Performance **
S&P 500® Index N/A N/A N/A N/A N/A N/A N/A

*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 10/26/2021

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.

Risk Considerations

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

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. A fund's 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 a fund by authorized participants in very large creation/redemption units. If a 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 a fund's net asset value and possibly face delisting.

A fund's shares will change in value, and you could lose money by investing in a fund. One of the principal risks of investing in a fund is market risk. Market risk is the risk that a particular stock owned by a fund, fund shares or stocks in general may fall in value. There can be no assurance that a fund's investment objective 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. While the development of vaccines has slowed the spread of the virus and allowed for the resumption of "reasonably" normal business activity in the United States, many countries continue to impose lockdown measures in an attempt to slow the spread. Additionally, there is no guarantee that vaccines will be effective against emerging variants of the disease. In managing a fund's investment portfolio, the portfolio managers will apply investment techniques and risk analyses that may not have the desired result.

There can be no assurance that an active trading market for fund shares will develop or be maintained.

Each Underlying ETF's strategy seeks to provide returns based on the price return of the reference asset for shares purchased on the first day of a Target Outcome Period and held for the entire Target Outcome Period, subject to a pre-determined upside cap. Because the funds will purchase shares of the Underlying ETFs in connection with creations of new shares of the funds and during each rebalance, the funds typically will not purchase Underlying ETF shares on the first day of a Target Outcome Period. Likewise, the funds will sell shares of the Underlying ETFs in connection with redemptions of shares of the funds and during each rebalance, and such sales typically will not occur on the last day of a Target Outcome Period.

In the event that the funds purchase Underlying ETF shares after the first day of a Target Outcome Period and the Underlying ETF has risen in value to a level near to the cap, there may be little or no ability for the funds to experience an investment gain on its shares, however, the funds will remain vulnerable to downside risks. If the reference asset experiences gains during a Target Outcome Period, an Underlying ETF will not participate in those gains beyond the cap.

A new Underlying ETF cap is established at the beginning of each Target Outcome Period and is dependent on prevailing market conditions. As a result, a 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.

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, funds have become more susceptible to potential operational risks through breaches in cyber security.

Certain of the Underlying ETFs seek to provide "enhanced" returns. There can be no guarantee that a fund will be successful in its strategy to provide enhanced returns of approximately twice any positive price return of the reference asset over the Target Outcome Period, subject to the predetermined upside return cap. In addition, a fund that seeks to provide investment outcomes over an entire Target Outcome Period does not seek to provide investment outcomes on a daily or other short-term basis and therefore on any given day, it is very unlikely that when the reference asset share price increases in value, a fund's shares will increase at the same rate as the enhanced returns sought by a fund.

A fund may invest in the shares of other ETFs, which involves additional expenses that would not be present in a direct investment in the Underlying funds. In addition, a fund's investment performance and risks may be related to the investment performance and risks of the Underlying funds.

The Underlying ETFs invest in FLEX Options that reference an ETF, which subjects a 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 Underlying ETF holds FLEX Options that reference the index and/or reference ETFs, the funds have exposure to the equity securities markets. The value of SPY will fluctuate over time based on fluctuations in the values of securities held by SPY, which may be affected by changes in general economic conditions, expectations for future growth and profits, interest rates and the supply and demand for those securities.

The FLEX Options held by the Underlying ETFs 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.

Information technology companies are subject to certain risks, including rapidly changing technologies, short product life cycles, fierce competition, aggressive pricing and reduced profit margins, loss of patent, copyright and trademark protections, cyclical market patterns, evolving industry standards and frequent new product introductions. Certain companies may be smaller and less experienced companies, with limited product lines, markets or financial resources

A fund classified as "non-diversified" may invest a relatively high percentage of its assets in a limited number of issuers. As a result, a 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.

Large inflows and outflows may impact a new fund's market exposure for limited periods of time.

A fund and a fund's advisor may seek to reduce various operational risks through controls and procedures, but it is not possible to completely protect against such risks.

The use of derivatives, including options 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. The effective use of options also depends on the Underlying ETFs' ability to terminate options positions at times deemed desirable to do so. There is no assurance that the Underlying ETFs will be able to effect closing transactions at any particular time or at an acceptable price.

High portfolio turnover may result in higher levels of transaction costs and may generate greater tax liabilities for shareholders.

If, in any year, a fund which intends to qualify as a Registered Investment Company (RIC) under the applicable tax laws fails to do so, it would be taxed as an ordinary corporation.

A fund may have temporary larger exposures to certain Underlying ETFs and under such circumstances, a fund's return would be greatly influenced by the returns of the Underlying ETFs with the larger exposures.

Trading on the exchange may be halted due to market conditions or other reasons. There can be no assurance that the requirements to maintain the listing of a fund on the exchange will continue to be met or be unchanged.

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

Cboe® is a registered trademark of Cboe Exchange, Inc., which has been licensed for use in the name of these products. These products are 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 these products and shall have no liability whatsoever in connection with these products.

The fund and the underlying ETFs are not issued, sponsored, endorsed, sold or promoted by SPDR® S&P 500® ETF Trust, PDR, Standard & Poor's® (together with their affiliates hereinafter referred to as the "Corporations"). The Corporations have not passed on the legality or suitability of, or the accuracy or adequacy of, descriptions and disclosures relating to the fund or the underlying ETFs. The Corporations make no representations or warranties, express or implied, regarding the advisability of investing in the fund or the underlying ETFs or results to be obtained by the fund or the underlying ETFs, shareholders or any other person or entity from use of the SPDR® S&P 500® ETF Trust. The Corporations have no liability in connection with the management, administration, marketing or trading of the fund or the underlying ETFs.

Not FDIC Insured • Not Bank Guaranteed • May Lose Value
 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
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