FT Vest U.S. Equity Quarterly 2.5 to 15 Buffer ETF (DHDG)

The FT Vest U.S. Equity Quarterly 2.5 to 15 Buffer ETF (DHDG) is a target outcome fund from First Trust Advisors, with Vest Financial as sub-advisor. It references the SPDR S&P 500 ETF Trust and uses quarterly outcome periods.

Within each three-month period the fund seeks to match the reference ETF's price return up to a cap. On the downside, investors bear the first 2.5% of any decline, after which the fund aims to buffer losses down to 15%; declines beyond that range are again passed through. Accepting the initial 2.5% of losses allows the fund to offer different upside terms than a buffer starting at zero.

The fund uses FLexible EXchange (FLEX) options to build this profile, with the cap reset at the start of each quarter.