 The
FT U.S. Equity Deep Buffer ETF - April (DAPR) is an exchange-traded
fund that seeks to provide exposure to U.S. large-cap stocks while
providing downside protection against the first 15% of losses over a
one-year period. The fund uses a buffer strategy, which involves
investing in a portfolio of U.S. large-cap stocks while simultaneously
purchasing a series of put options on the same index.
The put
options provide the downside protection, which helps to limit losses
for investors during periods of market volatility. The buffer zone
provided by the options allows investors to participate in market
gains up to a certain point, while also limiting potential losses.
DAPR was launched by First Trust Advisors on April 14, 2021. The
fund has an expense ratio of 0.60% and is rebalanced annually. Its
holdings are primarily in large-cap U.S. equities, with a focus on the
technology, healthcare, and consumer discretionary sectors.
Investors interested in DAPR should be aware of its buffer strategy,
which may limit gains during strong market rallies. Additionally, the
fund's performance may be affected by changes in interest rates,
currency fluctuations, and geopolitical events. As with all
investments, investors should carefully consider their investment
objectives and risk tolerance before investing in DAPR or any other
ETF.
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