DAPR ISSUER
The FT Cboe Vest U.S. Equity Deep Buffer ETF - April (DAPR) is managed by PDR Services, LLC, serving as the sponsor of the Underlying ETF. DAPR employs a unique strategy by investing substantially in Flexible Exchange Options (FLEX Options) referencing the price performance of the SPDR® S&P 500® ETF Trust. These FLEX Options provide investors with customized terms for exercise prices, styles, and expiration dates, allowing for tailored risk management. The investment objective of the Underlying ETF, SPDR® S&P 500® ETF Trust, is to closely track the price and yield performance of the S&P 500® Index, a benchmark of 500 selected companies listed on national stock exchanges. DAPR offers investors a target outcome strategy with a deep buffer against losses between -5% and -30% and a cap of 14.05% over the Target Outcome Period, providing potential benefits in varying market conditions. Please note that returns are subject to fees, expenses, and market fluctuations.
DAPR DIVIDEND
The FT Cboe Vest U.S. Equity Deep Buffer ETF - April (DAPR) primarily focuses on implementing a target outcome strategy using FLEX Options that reference the price performance of the SPDR® S&P 500® ETF Trust (the Underlying ETF). These FLEX Options allow investors to customize contract terms like exercise prices and expiration dates. The Underlying ETF itself replicates the S&P 500® Index. However, it's important to note that the Fund's performance does not include dividends paid by the Underlying ETF. DAPR employs a deep buffer strategy with a target outcome period of approximately one year, beginning on April 24, 2023, and ending on April 19, 2024. The Fund aims to provide investors with a buffer against Underlying ETF losses ranging from -5% to -30% during this period. While the Fund seeks to limit losses to 75%, there is no guarantee of achieving this goal. Additionally, the Fund has a cap of 14.05% (before fees and expenses), which represents the maximum return an investor can achieve from the investment for the Target Outcome Period. However, this cap does not take into account any dividends that may be paid by the Underlying ETF during this time. Investors should be aware that the Fund's cap and deep buffer may vary between Target Outcome Periods based on market conditions, and an investor's potential return will depend on when they purchase Fund shares during the Target Outcome Period. DAPR aims to provide downside protection and a pre-determined return profile but does not consider dividends from the Underlying ETF in its performance calculations.
DAPR TRACKING
At the heart of the AdvisorShares Dorsey Wright Alpha Portfolio ETF (DARP) is the strategy to track the Dorsey Wright Multi-Factor Global Equity Index. DARP employs a dynamic approach by selecting securities based on various factors, including momentum, volatility, and correlation. By closely aligning with this specialized index, DARP aims to offer investors exposure to a diversified basket of global equities, leveraging quantitative analysis to capture potential alpha and enhance portfolio performance.
DAPR CORRELATION
The correlation aspect of the FT Cboe Vest U.S. Equity Deep Buffer ETF - April (DAPR) is crucial for understanding its performance relative to the SPDR® S&P 500® ETF Trust (SPY), which it references through FLEX Options. Given that DAPR seeks to provide a deep buffer against losses between -5% and -30% of the Underlying ETF (SPY), its correlation with SPY is expected to be high. This correlation is important for investors looking to manage risk and enhance portfolio diversification. To explore these correlations further, ETF Insider offers a web app with robust data visualization tools that enable investors to gain deep insights into the performance and overlaps of US ETFs, including DAPR, providing valuable information for informed investment decisions.
DAPR SECTOR
The FT Cboe Vest U.S. Equity Deep Buffer ETF - April (DAPR) primarily invests in FLexible EXchange® Options (FLEX Options) that reference the price performance of the SPDR® S&P 500® ETF Trust (the Underlying ETF). FLEX Options are customized equity or index option contracts that allow investors to customize key contract terms. The Underlying ETF tracks the performance of the S&P 500® Index and uses a replication strategy to invest in as many of the stocks in the index as possible. DAPR employs a target outcome strategy that seeks to provide predefined investment outcomes based on the performance of the Underlying ETF over a specific period, offering investors a deep buffer against losses while capping potential gains. Please note that investing in DAPR may involve significant risk, and outcomes can vary based on market conditions and the specific Target Outcome Period.
DAPR EXPOSURE
The FT Cboe Vest U.S. Equity Deep Buffer ETF - April (DAPR) primarily invests in Flexible Exchange® Options (FLEX Options) referencing the price performance of the SPDR® S&P 500® ETF Trust (the Underlying ETF). These FLEX Options are customized equity or index option contracts, providing investors with the ability to customize key contract terms like exercise prices, styles, and expiration dates. The Underlying ETF replicates the S&P 500® Index, which includes 500 selected companies across various industry groups. DAPR employs a target outcome strategy with a deep buffer of -5% to -30% against losses and a cap of 14.05% (before fees and expenses), aiming to match the Underlying ETF''s performance over an approximate one-year period. To discover more about DAPR''s exposure and its unique investment approach, investors can use ETF Insider''s web app, providing in-depth and insightful data visualization tools, including overlap and correlation analysis.
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