First Trust Portfolios Canada Announces Cap, Buffer and Dates of August Buffer ETF
August 20 2021 - 9:37PM
FT Portfolios Canada Co. (“First Trust Canada”), announced today
that the cap, buffer and dates for the next Target Outcome Period
for the First Trust Cboe Vest U.S. Equity Buffer ETF – August (TSX:
AUGB.F) (the “fund” or “August Buffer ETF”) are as follows:
TICKER |
CAP |
BUFFER |
OUTCOME PERIOD |
AUGB.F |
11.64% (Gross) |
10% |
23/08/2021 – 19/08/2022 |
The initial Target Outcome Period for AUGB.F
concluded on August 20, 2021 and the upside cap for the new Target
Outcome Period has been reset to prevailing market conditions.
The fund seeks an outcome that provides
investors with returns (before fees, expenses and taxes) that match
the price return of the SPDR® S&P 500® ETF Trust (“SPY” or
“underlying ETF”), up to a predetermined upside cap, while
providing a buffer against potential SPY losses. The fund is
managed and sub-advised by Cboe Vest Financial LLC (“Cboe Vest”)
using a “target outcome strategy” or pre-determined target
investment outcome. To achieve its investment objectives, the ETF
will under normal market conditions invest substantially all of its
assets in FLexible EXchange® Options that reference the price
return of the Underlying ETF.
If an investor purchases hedged units after the
first day of the Target Outcome Period, they will likely have a
different return potential than an investor who purchased hedged
units at the start of the Target Outcome Period and the buffer the
fund seeks may not be available.
First Trust Canada believes a buffer against a
level of losses can help investors stay invested during volatile
times. The fund offers a way to gain access to outcome-based
investing—specifically to buffer against a level of downside risk
while allowing growth to a maximum cap— eliminating bank credit
risk, in a convenient, flexible investment vehicle.
Karan Sood and Howard Rubin, of Cboe Vest, serve
as a portfolio managers for the fund. The portfolio managers are
jointly and primarily responsible for making investment management
decisions for the fund.
For further information: Media Contact: Karl
Cheong FT Portfolios Canada Co., 40 King Street West, Suite 5102,
Email: karlcheong@firsttrust.ca, 1-877-622-5552.
About First Trust First Trust
Canada is the trustee, manager and promoter of the fund. First
Trust Canada and its affiliates First Trust Advisors L.P. (“FTA”),
portfolio advisor to the fund, an Ontario Securities Commission
registered portfolio manager and U.S. Securities and Exchange
Commission registered investment advisor, and First Trust
Portfolios L.P., a FINRA registered broker-dealer, are privately
held companies that provide a variety of investment services. FTA
has collective assets under management or supervision of
approximately U.S. $207 billion as of July 31, 2021 through unit
investment trusts, exchange-traded funds, closed-end funds, mutual
funds and separate managed accounts. For more information, visit
www.firsttrust.ca.
About Cboe Vest: Cboe Vest is
the creator of Target Outcome Investments®, which strive to buffer
losses, amplify gains or provide consistent income to a diverse
spectrum of investors. Today, Cboe Vest’s Target Outcome
StrategiesTM are available in mutual funds, exchange-traded funds
(ETFs), unit investment trusts (UITs), collective investment trusts
(CITs), and customizable managed accounts / sub-advisory services.
For more information about Cboe Vest and the evolution of Target
Outcome Investments, visit www.cboevest.com or contact Linda Werner
at lwerner@cboevest.com or 703-864-5483.
There may be commissions, trailing
commissions, management fees and expenses associated with ETF
investments. ETFs are not guaranteed, their values change
frequently and past performance may not be repeated. Please read
the prospectus of the fund before investing. Contact FT Portfolios
Canada at 1-877-622-5552 or visit
www.firsttrust.ca to obtain a copy of the
prospectus and ETF Facts for the fund.
Important Information
The information presented is not intended to
constitute an investment recommendation for, or advice to, any
specific person. Financial advisors are responsible for evaluating
investment risks independently and for exercising independent
judgment in determining whether investments are appropriate for
their clients
Cboe® is a registered trademark of Cboe
Exchange, Inc., which has been licensed for use in the name of the
funds. The funds 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 the funds and shall have no liability whatsoever in
connection with the funds.
First Trust Advisors L.P. is the portfolio
advisor to the funds. First Trust Advisors L.P. is an affiliate of
FT Portfolios Canada Co., the trustee, manager and promoter of the
funds. Financial advisors are responsible for evaluating investment
risks independently and for exercising independent judgment in
determining whether investments are appropriate for their
clients.
Further information about First Trust
Canada’s ETFs can be found at
www.firsttrust.ca.
CONTACT:Karl Cheong First Trust Portfolios
Canada (416) 865-8053 karlcheong@firsttrust.ca
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