Ryan Issakainen, ETF Strategist, First Trust discusses the firm’s Target Outcome ETF lineup and how advisors can leverage their products to manage risk during times of volatility.
Target Outcome ETFs offer investors a buffer against market downside, while still capturing upside exposure, allowing them to remain protected during the market’s most volatile moments. With the current market conditions in mind, Target Outcome ETFs can enable investors to add outcome-based investing to their portfolios without accruing additional risk. This flexible strategy is rooted in derivatives and formulaically tailored to maximize its capability to realize its upside cap.
First Trust offers a suite of Target Outcome ETFs that employ a “target outcome strategy” in order to provide investors with consistent upside benefits. These funds have a perpetual structure, meaning at the end of each Target Outcome Period, a new Target Outcome Period starts and the cap and buffer are reset. First Trust offers FT Cboe Vest U.S. Equity Deep Buffer ETFs with individual ETFs specific to the months of August (DAUG), February (DFEB), July (DJUL), June (DJUN), May (DMAY), and November (DNOV). Each ETF can be held indefinitely, but its coverage lasts until the month in its name. First Trust also has a set of FT Cboe Vest U.S. Equity Buffer ETFs including August (FAUG), February (FFEB), July (FJUL), June (FJUN), May (FMAY), and November (FNOV).
Since its founding in 1991, First Trust has worked diligently to facilitate a transparent investing environment, develop long-term strategies, and remain disciplined through market highs and lows. The firm implements tax-efficient structures and consistently rebalances portfolios to maximizing benefits for their clients. First Trust offers an array of products including unit trusts, ETFs, closed-end funds, mutual funds, structured accounts, 401(k) funds, and managed accounts.
Ryan Issakainen has been a member of the First Trust team since 2000. As an ETF strategist, he strives to connect investors with the best ETFs suited to meet their specific needs. His responsibilities include researching ETF trends and providing financial advisors with an in-depth analysis of the ETF investing world.
To learn more, register for First Trust’s recent webcast: Target Outcome ETFs.
Please Join Ryan Issakainen, CFA, ETF Strategist, First Trust and Steve Naemtz, President, CBOE Vest Financial LLC as they discuss Target Outcome ETFs…what they are, how they work and how they can be used in client portfolios. In addition, Ryan and Steve will highlight additional resources available to help advisors better understand the products and provide guidance on pricing both pre and post trade. Learn more about this innovative lineup of ETFs that can be a tremendous tool for managing risk, particularly during market volatility.