First Trust has announced the launch of the First Trust Vest Nasdaq-100 Moderate Buffer UCITS ETF – March (“QMAR”), on the London Stock Exchange, offering investors the opportunity to participate in the growth potential of Nasdaq-100 companies while mitigating some of the inherent volatility. QMAR is the latest addition to First Trust’s expanding suite of Target Outcome ETFs in UCITS format.
The firm explains that Buffer ETFs seek to protect investors from a level of losses, while allowing participation in potential growth, up to a predefined cap.
The Fund is actively managed and seeks to provide returns that match the price return of the Nasdaq-100, up to a predetermined upside cap, while providing a 15 per cent downside cushion through a built-in buffer mechanism.
The outcome period runs for approximately one year, ending in March 2026, after which the cap and buffer are reset to prevailing market conditions.
QMAR has a perpetual structure and may be held indefinitely, providing a potential buy-and-hold investment opportunity, the firm says.
The Fund is managed by First Trust Advisors L.P. and sub-advised by Vest Financial LLC, a pioneer of the buffer strategy and creator of the Target Outcome Investments framework.
“We are delighted to expand our range by bringing this innovative buffer strategy to European investors,” says Rupert Haddon, Managing Director at First Trust Global Portfolios. “QMAR represents the third ETF in our quarterly series of scheduled UCITS ETFs for our Nasdaq-100 Target Outcome suite. In today’s volatile market climate, we believe QMAR provides a compelling option for investors seeking exposure to leading Nasdaq-100 companies while managing downside risk.”
Market Participation with Reduced Volatility: QMAR provides capped upside potential along with a built-in contractual buffer against the first 15 per cent of losses of the Nasdaq-100 Index.
Smoother Returns: The Fund aims to reduce peaks and troughs for a more stable growth trajectory, potentially preserving more capital during market shocks. This buffer mechanism may be particularly beneficial given the index’s high exposure to ‘MAG 7’ stocks, the firm says.
Zero-Cost Buffer with Customised FLEX Options: QMAR uses FLexible EXchange Listed (“FLEX”) options, which are customised, exchange-traded contracts guaranteed for settlement by the Options Clearing Corporation.
Flexibility and Transparency: Investors can buy or sell shares at any time with no early exit penalties. All option components are transparently displayed in the ETF holdings, available on our website.
Lower Beta/Delta: The fund aims to have a lower beta/delta relative to the index, helping to cushion negative market movements.
