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FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June (XJUN)
Investment Objective/Strategy - The investment objective of the FT Cboe Vest U.S. Equity Enhance & Moderate Buffer ETF - June (the "Fund") is to seek to provide investors with returns of approximately twice any positive price return of the SPDR® S&P 500® ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 6.16% (before fees and expenses), while providing a buffer (before fees and expenses) against the first 15% of Underlying ETF losses, over the period from July 13, 2021 to June 17, 2022. Under normal market conditions, the Fund will invest substantially all of its assets in FLexible EXchange® Options ("FLEX Options")-that reference the price performance of the "Underlying ETF".
There can be no assurance that the Fund's investment objectives will be achieved.
Fund Overview
TickerXJUN
Fund TypeTarget Outcome Strategies
Investment AdvisorFirst Trust Advisors L.P.
Investor Servicing AgentBank of New York Mellon
Portfolio Manager/Sub-AdvisorCBOE Vest Financial, LLC
CUSIP33740U844
ISINUS33740U8449
Intraday NAVXJUNIV
Fiscal Year-End08/31
ExchangeCboe BZX
Inception7/12/2021
Inception Price$29.72
Inception NAV$29.72
Expense Ratio0.85%
Current Fund Data (as of 7/23/2021)
Closing NAV1$29.83
Closing Market Price2$29.75
Bid/Ask Midpoint$29.74
Bid/Ask Discount0.30%
30-Day Median Bid/Ask Spread30.34%
Total Net Assets$2,983,127
Outstanding Shares100,002
Daily Volume9,375
Closing Market Price 52-Week High/Low$29.75 / $29.33
Closing NAV 52-Week High/Low$29.83 / $29.44
Number of Holdings (excluding cash)5
NAV History (Since Inception)
Past performance is not indicative of future results.
Top Holdings (as of 7/23/2021)*
Holding Percent
2022-06-17 SPDR® S&P 500® ETF Trust C 4.37 98.28%
2022-06-17 SPDR® S&P 500® ETF Trust P 437.08 7.07%
2022-06-17 SPDR® S&P 500® ETF Trust C 437.08 6.83%
2022-06-17 SPDR® S&P 500® ETF Trust P 371.52 -3.06%
2022-06-17 SPDR® S&P 500® ETF Trust C 450.54 -10.21%

* Excluding cash.  Holdings are subject to change.

Bid/Ask Premium/Discount (as of 7/23/2021)
  2020 Q1 2021 Q2 2021 Q3 2021
Days Traded at Premium --- --- --- 0
Days Traded at Discount --- --- --- 9
Outcome Period Performance
Outcome Period Values
Series June
Reference Asset SPDR® S&P 500® ETF Trust
Cap (Net) 6.16% (5.37%)
Buffer Start (Net) 0.00% (-0.79%)
Buffer End (Net) -15.00% (-15.79%)
Outcome Period 7/13/2021 - 6/17/2022
Current Values
(as of 7/23/2021)
Fund Value/Return $29.83 / 0.37%
Reference Asset Value/Return $439.94 / 0.65%
Remaining Outcome Period 329 days
Remaining Cap (Net) 5.77% (4.98%)
Reference Asset Return to Realize the Cap 2.41%
Remaining Buffer  
Reference Asset to Buffer End 15.55%
+ Unrealized Option Payoff 0.00%
+ Downside Before Buffer -0.37%
Remaining Buffer (Net) 15.19% (14.40%)
   
Reference Asset and Fund Values
Cap Reference Asset Value $450.54
Starting Reference Asset Value $437.08
Buffer Start Reference Asset Value $437.08
Buffer End Reference Asset Value $371.52
Cap Fund Value^ $31.55
Starting Fund Value $29.72
Buffer Start Fund Value^ $29.72
Buffer End Fund Value^ $29.72
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.
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.

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

The fund has characteristics unlike many other traditional investment products and may not be suitable 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.

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 will change in value, and you could lose money by investing in a fund. There can be no assurance that a fund’s investment objective will be achieved. One of the principal risks of investing in a fund is market risk. Market risk is the risk that a particular security owned by a fund, fund shares or securities in general may fall in value.

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 advisor will apply investment techniques and risk analyses that may not have the desired result.

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.

A fund that effects all or a portion of its creations and redemptions for cash rather than in-kind may be less tax-efficient.

The fund is classified as “non-diversified” and may invest a relatively high percentage of their 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.

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

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 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.

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, a fund has become more susceptible to potential operational risks through breaches in cyber security.

There can be no guarantee that the Fund will be successful in its strategy to provide enhanced returns of approximately twice the price return of the Underlying ETF over the Target Outcome Period subject to the predetermined upside return cap.

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.

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

A fund with significant exposure to a single asset class, country, region, industry or sector may be more affected by an adverse economic or political development than a broadly diversified fund.

Large capitalization companies may grow at a slower rate than the overall market.

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

The fund intends to qualify as a “regulated investment company” (“RIC”), however, the federal income tax treatment of certain aspects of the proposed operations of the fund is not entirely clear. If, in any year, the fund fails to qualify as a RIC under the applicable tax laws, the fund would be taxed as an ordinary corporation.

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.
The fund is not sponsored, endorsed, sold or promoted by SPDR® S&P 500® ETF Trust, PDR, or 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 FLEX Options. The Corporations make no representations or warranties, express or implied, regarding the advisability of investing in the fund or the FLEX Options or results to be obtained by the fund or the FLEX Options, 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 FLEX Options.

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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