First Trust is launching a new managed floor product called the First Trust Vest U.S. Equity Moderate Buffer UCITS ETF. The ETF will strive to capitalize on the gains in the S&P 500 but will cap the returns at 13.86% annually. However, this comes with the benefit of a 15% downside protection.

The Fund will have an outcome period of a year and will set to end in February 2025, when this time expires the cap and buffer conditions will be reset to match the current market conditions adapting to the new financial climate. 

Managed by First Trust Advisors L.P. and sub-advised by Vest Financial LLC, GFEB invests primarily in Flexible Exchange Options (FLEX Options) on the S&P 500, providing a customizable approach to outcome-based investing and mitigating bank credit risk. Derek Fulton, CEO of First Trust Global Portfolios, highlights the fund's role in addressing investor concerns about downside risk and underscores the increasing popularity of buffered ETFs as a solution in today's market landscape.

Finsum: Buffer ETFs like these give investors an alternative route to navigate the tricky 2024 markets while maintaining exposure to the upside equities offer.