- First Trust Advisors L.P. launched three new Target Outcome Strategy ETFs, expanding their lineup to 118 funds.
- The new ETFs are designed to offer various investment strategies including income generation, capital appreciation, and risk management.
- These ETFs are sub-advised by Vest Financial LLC, utilizing their Target Outcome Investments® framework.
First Trust Advisors L.P., a prominent provider of exchange-traded funds (ETFs) and outcome-based strategies, has announced the launch of three new actively managed ETFs. These funds aim to enhance investors' income and growth opportunities while managing risk through a structured outcome-based strategy. The new ETFs include the FT Vest Growth Strength & Target Income ETF (FGSI, Financial), FT Vest Laddered Enhance & Moderate Buffer ETF (BUFX), and FT Vest Laddered Max Buffer ETF (BUFH).
The FT Vest Growth Strength & Target Income ETF (FGSI, Financial), launched on June 26, 2025, seeks to deliver an annualized income approximately 8% above the S&P 500® Index's dividend yield by primarily investing in U.S. exchange-traded equity securities. This ETF employs an option strategy involving the sale of call options on the S&P 500® Index. Its secondary objective is capital appreciation.
The FT Vest Laddered Enhance & Moderate Buffer ETF (BUFX) and the FT Vest Laddered Max Buffer ETF (BUFH), both launched on June 25, 2025, aim for capital appreciation through a laddered portfolio of underlying ETFs. BUFX targets a 15% downside buffer and offers about 2x any positive SPY price return up to a cap. BUFH focuses on maximizing the downside buffer while providing upside potential up to a set cap. Both funds use FLEX Options tied to the SPDR® S&P 500® ETF Trust (SPY).
These additions bring First Trust's Target Outcome ETF portfolio to 118 funds with over $29.7 billion in assets as of May 30, 2025, representing a 39% increase year over year. The funds are managed by Karan Sood and Trevor Lack from Vest Financial LLC, leveraging Target Income and Outcome investments to meet specific investor needs like income generation and risk mitigation.
Ryan Issakainen, CFA, Senior Vice President and ETF Strategist at First Trust, highlighted the need for innovation in today’s market conditions, stating that these funds provide tailored solutions through a single ETF structure. Jeff Chang, President of Vest, emphasized the increasing investor demand for strategies that manage risk while maintaining growth potential.
