On Monday, First Trust Advisors rolled out the FT Vest U.S. Equity Equal Weight Buffer ETF – June (RSJN ).
RSJN has a net expense ratio of 0.85%. The fund aims to generate returns that match the price return of the Invesco S&P 500 Equal Weight ETF (RSP ), up to a cap.
Most, if not all, of fund investments will be allocated toward FLEX options that reference the Invesco S&P 500 Equal Weight ETF Trust’s price performance. Investing in FLEX options provides the opportunity to fine-tune many of the option’s terms, such as expiration date and exercise price.
The underlying ETF, RSP, uses a full replication strategy to track the S&P 500 Equal Weight Index. RSP aims to provide cost-effective and tax-efficient exposure to the S&P 500 while mitigating concentration risk.
Experienced Subadvisor
Vest Financial LLC is the subadvisor for RSJN. The company frequently partners with First Trust in the management of buffered and targeted outcome funds.
Through the use of FLEX options, RSJN applies a target outcome strategy to seek predetermined investment outcomes. This strategy includes a protective buffer against the first 10% of losses that the fund may endure. This buffer comes at the expense of an upside cap, capping potential returns at up to 19.03%.
Beginning on the fund’s launch day, the first target outcome period is set to conclude on June 20, 2025. Afterward, the next target outcome period is set to begin on the same day, running for about a year. At the start of each outcome period, the fund will choose new FLEX options and select a new upside cap.
Currently, First Trust Advisors has over 165 ETFs listed in the United States. As a whole, these funds represent over $140 billion in assets under management.
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