FT Vest U.S. Small Cap Moderate Buffer ETF - August (SAUG)

The FT Vest U.S. Small Cap Moderate Buffer ETF - August (SAUG) is a target outcome ETF from First Trust, with Vest Financial serving as sub-advisor. It seeks to provide returns linked to the price performance of the iShares Russell 2000 ETF, a fund tracking U.S. small-capitalization stocks, up to a predetermined upside cap, while buffering against a defined portion of losses over a twelve-month outcome period that begins each August.

To build this payoff, the fund holds a portfolio of FLexible EXchange (FLEX) options on the reference fund. These options are structured so that gains are limited to the cap and losses within the buffer range are absorbed, with the cap reset at the start of every new outcome period.

Investors who buy shares after an outcome period has started may experience a different cap and buffer than those set at the beginning of the period, since the outcome depends on the fund's value at the time of purchase.