Bringing you live news and features since 2006 

First Trust launches the First Trust Cboe Vest U.S. Equity Moderate Buffer UCITS ETF – GNOV

RELATED TOPICS​

First Trust has announced the launch of the First Trust Cboe Vest U.S. Equity Moderate Buffer UCITS ETF on the London Stock Exchange. The firm writes that the fund 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 cap of 14.04 per cent.

GNOV is the second in First Trust’s suite of Target Outcome ETFs in UCITS format. The firm writes that globally the First Trust Target Outcome product line has amassed more than USD14 billion in total net assets as of September 2023. Actively managed, GNOV seeks to provide investors with returns that match the price return of the S&P 500, up to a predetermined upside cap, while providing a buffer against potential losses.

The Fund’s outcome period runs for approximately one year, ending in November 2024. At the end of the outcome period, the cap and buffer are reset to prevailing market conditions. The Fund has a perpetual structure and may be held indefinitely, providing investors a potential buy and hold investment opportunity. 

The Fund is managed by First Trust Advisors L.P. and sub-advised by Cboe Vest Financial LLC using a “Target Outcome Strategy” or pre-determined target investment outcome. Cboe Vest is the creator of Target Outcome Investments and manager of the longest running buffer strategy fund. The Fund will invest substantially all of its assets in FLexible EXchange Options on the S&P 500. FLEX Options are customisable exchange-traded option contracts guaranteed for settlement by the Options Clearing Corporation.

The Fund offers a way to gain access to outcome-based investing, specifically to protect against a level of downside risk while allowing growth to a maximum cap, whilst eliminating bank credit risk in a convenient, flexible investment vehicle.

Derek Fulton, CEO at First Trust Global Portfolios, says: “For investors, GNOV represents the second ETF in our quarterly series of scheduled ETFs for our Target Outcome suite. Mitigating downside risk remains a top concern for many investors, which helps explain the growing popularity of buffered ETFs. The launch of GNOV continues to show our commitment to offering European investors innovative solutions to navigating today’s market.”

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by