First Trust Expands Target Outcome Lineup with Launch of DLAG, a Dual Directional 10% Buffer ETF Based on SPY

First Trust Advisors L.P. (“First Trust”) a leading exchange-traded fund (“ETF”) provider and asset manager, announced today that it has launched the FT Vest U.S. Equity Dual Directional Buffer ETF – August (Cboe: DLAG) (the “fund”).

DLAG seeks to provide returns (before fees and expenses) that either match the price return of the SPDR S&P 500 ETF Trust (“SPY” or the “Underlying ETF”) up to a predetermined upside cap or match the absolute value of the negative price return of the Underlying ETF losses up to a specified Inverse Performance Threshold, while also seeking to provide a 10% buffer against losses that exceed the Inverse Performance Threshold over an approximate period of one year.

"We are delighted to expand our lineup of Target Outcome ETFs with another innovative solution for financial professionals seeking to manage risk,” said Ryan Issakainen, CFA, Senior Vice President, ETF Strategist at First Trust.

First Trust believes a buffer against a level of losses can help investors stay invested during volatile times.

“DLAG represents an expansion of what outcome-focused investing can bring to a portfolio. As the first dual directional ETF within the First Trust Target Outcome ETF lineup, it’s designed to pursue positive returns whether the market moves up or down—within a defined range. Unlike traditional strategies that rely solely on growth potential, DLAG seeks to deliver gains from modest market declines, while also seeking to buffer against deeper losses. In today’s uncertain environment, this structure gives financial professionals a differentiated tool to build potentially more resilient, outcome-aligned portfolios with greater clarity and control,” said Jeff Chang, President of Vest Financial LLC, sub-advisor to the fund.

If an investor purchases shares after the first day of the Target Outcome Period, they will likely have a different return potential and buffer than an investor who purchased shares at the start of the Target Outcome Period and the buffer the fund seeks may not be available. At the end of the Target Outcome Period, the upside cap for the new Target Outcome Period is reset to prevailing market conditions. The fund has a perpetual structure and may be held indefinitely, providing investors a buy and hold investment opportunity.