FT Cboe Vest Nasdaq-100 Moderate Buffer UCITS ETF - June

Issuer: First Trust

Asset Class: Equity

TER: 50bps

Trading Currency: USD

Pays Income: False

Listing Date: 23 Jun 2025

Ticker: QJUN

ISIN: IE000HFBJ0U0

This fund offers a risk-managed approach to investing in the Nasdaq-100, a benchmark known for its growth-oriented but volatile nature. The strategy is designed for investors who want to participate in the potential gains of leading technology and non-financial companies but are also concerned about downside risk. By providing a buffer against a pre-determined level of losses, the investment seeks to offer a more predictable return profile over a specific one-year period, appealing to those seeking a balance between growth and capital preservation.

The portfolio achieves its defined outcome by investing in a portfolio of FLexible EXchange® Options (FLEX Options) that reference the performance of a Nasdaq-100 tracking investment. This structure aims to shield investors from the first 15% of losses in the reference asset during the one-year outcome period. In exchange for this downside protection, the potential upside is capped at a pre-set level. This cap is determined at the beginning of each annual outcome period and is influenced by market conditions, such as interest rates and implied volatility.

This investment is particularly suitable for those with a moderate risk tolerance who are approaching financial goals or are in a capital preservation phase but still desire equity exposure. It can serve as a core holding for investors looking to mitigate volatility in their portfolios without completely exiting the equity market. The defined outcome nature provides clarity on potential returns and losses, which can be valuable for financial planning, especially in uncertain market environments. The fund resets its buffer and cap annually, establishing new terms for the subsequent period.