First Trust has expanded its suite of Target Outcome Investments with the launch of a US equity UCITS ETF offering exposure to the growth of the S&P 500 while protecting on the downside.
Listed on the London Stock Exchange, the First Trust Vest US Equity Max Buffer UCITS ETF (MSEP) allows investors to participate in the growth potential of the S&P 500 Index, up to a predetermined upside cap, while seeking to provide the maximum available buffer against index losses over one year.
The initial outcome period runs for approximately one year, ending in September 2026. During that time the actively managed fund will target a maximum percentage return of at least 7% while the buffer is expected to be 100%.
However, the expected range of the buffer for future periods is between 20% and 100%.
While investors can buy or sell shares at any time with no early exit penalties, MSEP has a perpetual structure and may be held indefinitely, making it suitable for buy-and-hold investors.
The fund is managed by First Trust Advisors and sub-advised by Vest Financial.
Rupert Haddon, managing director at First Trust Global Portfolios, said: “We are thrilled to introduce our second maximum buffer UCITS ETF for investors based in Europe.
“MSEP is designed to seek maximum downside protection while still offering upside potential to a predetermined cap. This fund reflects our commitment to delivering innovative solutions that help investors navigate market volatility with greater confidence, complementing our existing family of target outcome ETFs.”
