- What does BUFT invest in?
- The FT Vest Buffered Allocation Defensive ETF (BUFT) is designed to help investors safeguard their capital. This objective is achieved by allocating nearly all of its assets to a selection of other exchange-traded funds, referred to as "Underlying ETFs." These Underlying ETFs are structured to deliver returns linked to the price performance of the SPDR S&P 500 ETF Trust (SPY), incorporating a pre-set ceiling on potential gains (a "cap") and a specific safeguard against losses (a "buffer") from SPY's movements over a defined one-year period. First Trust Advisors L.P. serves as the advisor for both BUFT and its Underlying ETFs, with Vest Financial LLC acting as the sub-advisor. SPY, which aims to broadly track the S&P 500 Index's price and yield, is sponsored by PDR Services, LLC. It's crucial to understand that BUFT itself, in contrast to its Underlying ETFs, does not employ its own defined outcome strategy or provide a direct buffer against market declines. The protective buffer and the return caps are characteristics solely of the Underlying ETFs. As a result, BUFT may not fully capture the benefits of these buffers, and its overall upside potential could be restricted by the individual caps of the Underlying ETFs.
- What is the expense ratio of BUFT?
- FT Vest Buffered Allocation Defensive ETF (BUFT) charges an expense ratio of 1.21%. This is the annual fee deducted from fund assets to cover management and operations.
- How big is BUFT?
- FT Vest Buffered Allocation Defensive ETF (BUFT) manages $154.6M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.
- Is BUFT actively managed or an index fund?
- BUFT is a passive index fund — it tracks a published benchmark by holding the constituents in their published weights. Index funds typically charge low expense ratios (BUFT's is 1.21%) because there's no security selection cost.
- When was BUFT launched?
- FT Vest Buffered Allocation Defensive ETF (BUFT) launched in October 2021 and is managed by First Trust.
- How has BUFT performed?
- BUFT's total return — price change plus reinvested distributions — is charted at the top of this page. Switch the price chart to Total Return and pick a 1-year, 3-year, 5-year, or 10-year window to read the compound annual growth rate (CAGR) over each horizon.
