What's New In Investments, Funds? – BNY Mellon IM, First Trust

Editorial Staff

4 September 2023

BNY Mellon IM
has launched an exchange-traded fund in the UK which provides a “buffer” of downside protection while tapping returns from the S&P 500 US equity market index.

The fund, First Trust Cboe Vest US Equity Moderate Buffer UCITS ETF, which is listed on the London Stock Exchange, is designed to help investors maintain a pre-determined level of 15 per cent downside protection, while also taking advantage of the growth of the S&P 500®, up to a predefined cap, First Trust said in a statement.

The fund’s outcome period runs for approximately one year, ending in August 2024. At the end of the outcome period, the cap and buffer will be reset to prevailing market conditions. The fund has a perpetual structure and may be held indefinitely, First Trust said.

First Trust Advisors, who manage the fund, are sub-advised by Cboe Vest Financial.

“Demand for buffer ETFs has increased as investment professionals seek new tools to navigate the equity market uncertainty,” Derek Fulton, CEO at First Trust Global Portfolios, said.