New Active ETF from First Trust on Xetra: access to the buffer strategy on Nasdaq-100 Trust with September 2024/2025 as target period

Since Thursday, a new active exchange traded fund from First Trust has been tradable on Xetra and Börse Frankfurt.

The First Trust Vest Nasdaq-100 Moderate Buffer UCITS ETF - September pursues an active investment strategy with the aim of tracking the performance of the Nasdaq-100  index up to a fixed upper limit (cap). At the same time, the fund aims to hedge against losses (buffer) for the first 15 per cent price declines at the end of the defined target period of one calendar year. To this end, the investment management invests the entire assets in FLEX options. These are put and call option contracts.

 The buffer strategy begins and ends in September of each year and is then rebalanced by the fund investing in a new package of FLEX options. The cap is calculated on the first reporting date depending on market conditions, while the buffer always remains unchanged at 15 per cent. Details of the current cap and buffer can be found on the First Trust website.

The product offering in Deutsche Börse’s XTF segment currently comprises a total of 2,231 ETFs. With this selection and an average monthly trading volume of around €15 billion, Xetra is the leading trading venue for ETFs in Europe.