The issuer of the FJAN ETF, which trades under the ticker symbol FJAN, is PDR Services, LLC (PDR). The FJAN ETF primarily invests in Flexible Exchange® Options (FLEX Options) referencing the price performance of the SPDR® S&P 500® ETF Trust (the Underlying ETF). FLEX Options are customized equity or index option contracts that trade on an exchange and provide investors with flexibility in contract terms. The Underlying ETF, sponsored by PDR, uses a replication strategy to track the S&P 500® Index's price and yield performance, aiming to provide investors with exposure to the broader U.S. equity market. The FJAN ETF employs a target outcome strategy with predetermined investment outcomes based on the performance of the Underlying ETF over specific Target Outcome Periods. Investors should carefully consider the cap and buffer levels, as they impact potential returns and losses associated with the Fund.
While the FJAN ETF primarily focuses on utilizing Flexible Exchange® Options (FLEX Options) referencing the performance of the SPDR® S&P 500® ETF Trust, it does not pay dividends itself. FLEX Options are customized equity or index option contracts that provide investors with flexibility in contract terms. The SPDR® S&P 500® ETF Trust seeks to track the price and yield performance of the S&P 500® Index. Therefore, any dividends associated with the FJAN ETF would be influenced by the dividend policies and performances of the underlying stocks within the S&P 500® Index.
The First Trust January Target Outcome ETF (FJAN) strategically tracks a specific index designed to provide investors with targeted outcome exposure. FJAN employs a methodology that aims to deliver returns consistent with a predefined outcome within the month of January. This unique approach, focusing on a short-term outcome window, distinguishes FJAN as an ETF designed to meet specific investor objectives during the first month of the year, offering a distinctive solution in the investment landscape.
The correlation aspect of the FJAN ETF, which is designed to invest substantially all of its assets in Flexible Exchange® Options (FLEX Options) referencing the price performance of the SPDR® S&P 500® ETF Trust (SPY), is integral to its investment strategy. Given that FJAN relies on FLEX Options tied to SPY, it is expected to exhibit a high correlation with the S&P 500 Index, reflecting the performance of its underlying asset. This correlation can make FJAN an effective tool for investors looking to manage risk, diversify their portfolios, or gain exposure to the broader equity market.
The FJAN Sector ETF primarily invests in customized equity or index option contracts known as FLEX Options, which reference the price performance of the SPDR® S&P 500® ETF Trust (the Underlying ETF). These FLEX Options allow investors to customize key contract terms like exercise prices, styles, and expiration dates. The Underlying ETF is an exchange-traded unit investment trust that seeks to replicate the performance of the S&P 500® Index. FJAN Sector employs a target outcome strategy, aiming to provide investors with a buffer against the first 10% of Underlying ETF losses and a cap of 19.04% (before fees and expenses) over an approximate one-year Target Outcome Period. This strategy offers potential protection and upside participation for investors but involves risks, including the potential for complete loss of investment if the Underlying ETF decreases by more than 10%.
The exposure characteristic of the FLEXShares January Target Outcome ETF (FJAN) revolves around its unique target outcome strategy. FJAN primarily invests in flexible exchange (FLEX) options that reference the price performance of the SPDR® S&P 500® ETF Trust (the Underlying ETF). These FLEX Options are customized equity or index option contracts, offering investors a chance to customize key contract terms such as exercise prices, styles, and expiration dates. The investment objective of FJAN is to provide investors with a predefined investment outcome, including a buffer against the first 10% of Underlying ETF losses and a cap on potential gains, all within an approximate one-year Target Outcome Period. To understand and assess the exposure and potential outcomes of FJAN, investors can utilize tools like ETF insider''s web app, which provides comprehensive data and visualizations for various US ETFs, including overlap and correlations.
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