First Trust has announced the launch of the First Trust Vest U.S. Equity Buffer UCITS ETF – July (FJUL), on the London Stock Exchange, offering investors the opportunity to participate in the growth potential of S&P 500 companies while mitigating some of the inherent volatility.
The firm writes that FJUL is the latest addition to First Trust’s expanding suite of Target Outcome ETFs in UCITS format.
• Buffer ETFs seek to protect investors from a level of losses, while allowing participation in potential growth, up to a predefined cap.
• This latest ETF joins the growing range of First Trust’s Target Outcome Investments, with firmwide assets under management in Target Outcome strategies exceeding USD28 billion as of end-March 2025.
Fund Details
• The Fund is actively managed and seeks to provide returns that match the price return of the S&P 500, up to a predetermined upside cap, while providing a 10 per cent downside cushion through a built-in buffer mechanism.
• The outcome period runs for approximately one year, ending in July 2026, after which the cap and buffer are reset to prevailing market conditions.
• FJUL has a perpetual structure and may be held indefinitely, providing a potential buy-and-hold investment opportunity.
• 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 excited to launch another innovative buffer strategy for European investors,” says Rupert Haddon, Managing Director at First Trust Global Portfolios. “FJUL is the third ETF in our series of scheduled UCITS ETFs for our S&P 500 Target Outcome 10 per cent buffer suite. In today’s volatile market, innovation is essential, especially for investors aiming for targeted outcomes amid uncertainty. FJUL offers a compelling solution by providing exposure to leading S&P 500 companies while helping to manage downside risk.”
Key Features of FJUL
• Market Participation with Reduced Volatility: FJUL provides capped upside potential along with a built-in contractual buffer against the first 10 per cent of losses of the S&P 500 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.
• Zero-Cost Buffer with Customised FLEX Options: FJUL 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, as it seeks to cushion negative market movements.
FJUL is now available for trading on the London Stock Exchange:
