 The
FT U.S. Equity Deep Buffer ETF November (DNOV) is an exchange-traded
fund (ETF) that seeks to provide investors with exposure to the
performance of the S&P 500 Index, while also providing a buffer
against potential losses. The ETF's objective is to provide investors
with a level of downside protection by using a "buffer" strategy that
seeks to limit losses in the event of a market downturn.
DNOV
invests in a portfolio of exchange-traded funds (ETFs) that provide
exposure to the S&P 500 Index. The ETF's buffer strategy involves
purchasing a combination of put options and treasury bills that are
designed to limit losses up to a certain level. Specifically, the fund
seeks to provide investors with a buffer against the first 15% of
losses that occur over the one-year term of the ETF.
As of
September 2021, the DNOV ETF has a net asset value (NAV) of
approximately $18 million and holds 7 ETFs. The ETF's expense ratio is
0.89%, which is relatively low compared to other buffer ETFs.
DNOV is a relatively new ETF, having been launched in 2020, and has
therefore not been around for a long time. However, the fund's buffer
strategy may be attractive to investors who are looking for a way to
limit potential losses in the event of a market downturn, while still
maintaining exposure to the potential upside of the S&P 500 Index.
Overall, the FT U.S. Equity Deep Buffer ETF November (DNOV) could
be a good investment option for investors who are seeking a buffer
against potential losses in the event of a market downturn, while
still maintaining exposure to the potential upside of the S&P 500
Index. However, as with any investment, it is important to conduct
thorough research and consider factors such as risk tolerance,
investment objectives, and fees before making a decision.
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