New Listing

First Trust launches second target outcome S&P 500 buffer ETF

The latest in First Trust’s quarterly series of target outcome ETF launches

Jamie Gordon

Derek Fulton

First Trust has expanded its target outcome suite with the launch of a second active S&P 500 buffer ETF.

The First Trust Cboe Vest U.S. Equity Moderate Buffer UCITS ETF – November (GNOV) is listed on the London Stock Exchange with a total expense ratio (TER) of 0.85%. 

GNOV becomes the second launch in First Trust’s UCITS target outcome suite with one ETF set to be added to the range each quarter.

The product is actively managed and offers exposure to the S&P 500 via Flexible Exchange (FLEX) options.

FLEX options are exchange-traded options contracts guaranteed for settlement by the Options Clearing Corporation.

GNOV’s buffer component means its options-based exposure provides 15% downside protection against the S&P 500 while returns are capped at 14.04% during the outcome period ending November 2024.

At the end of the outcome period, the loss buffer and gain cap are reset to prevailing market conditions, with the ETF’s perpetual structure allowing it to be held indefinitely. 

The ETF is managed by First Trust Advisors and sub-advised by Cboe Vest, which manages the longest-running buffer strategy fund. 

Derek Fulton (pictured), CEO of First Trust Global Portfolios, commented: “For investors, GNOV represents the second ETF in our quarterly series of scheduled ETFs for our target outcome suite.

“Mitigating downside risk remains a top concern for many investors, which helps explain the growing popularity of buffered ETFs.”

The launch comes three months after the issuer commenced its target outcome UCITS range with the First Trust Cboe Vest U.S. Equity Moderate Buffer UCITS ETF – August (GAUG). 

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