First Trust Expands Target Outcome Lineup with Launch of DGOC, A 10% Buffer ETF that Seeks to Provide Positive Return Potential in Up, Flat, and Modestly Down Markets

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. Buffer & Digital Return ETF – October (Cboe: DGOC) (the “fund”).

DGOC seeks to provide investors with a buffer against the first 10% of losses on the price returns of the SPDR S&P 500 ETF Trust (“SPY” or the “Underlying ETF”) while also providing a predetermined return level (“digital return”) if the Underlying ETF appreciates in price, remains unchanged or decreases in price by 10% or less, over the Target Outcome Period.

“We are delighted to expand our lineup of Target Outcome ETFs with the launch of DGOC. We believe this ETF may be a compelling solution for investors, seeking to provide attractive positive returns even when equity markets are modestly lower, while also buffering downside risk when markets face steeper losses,” 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. “DGOC introduces a new way to pursue target outcomes—offering a predetermined digital return when the market is flat, modestly down, or rising. In an environment where volatility and uncertainty remain top of mind, this may provide advisors with a new tool: a preset digital return across a wide range of market scenarios, combined with a downside buffer. It reflects Vest’s commitment to delivering outcome-focused solutions that can provide more clarity, control, and consistency to portfolio construction,” 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 digital return 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.