FT Vest U.S. Equity Buffer ETF - August

Frequently Asked Questions About FAUG

What does FAUG invest in?

FAUG uses options in an effort to moderate losses on shares of SPDR S&P 500 ETF Trust (ticker: SPY) over a one-year period, starting in August. In exchange for preventing realization of the first 10% of losses, the fund foregoes some upside return as well as the dividend component of SPY because the options are written on the price (not total) return version of the shares. Should shares of SPY decline greater than 10%, investors participate in the downside performance on a $1 for $1 basis. Shares must be held over a specific period to achieve the intended results. At the end of the target outcome period, the fund will reset for a new outcome period tied to the same index and buffer, but the cap may change based on market rates. The issuer publishes effective interim levels daily on its website. The targeted cap and buffer do not include the fund's expense ratio. The fund is actively managed and uses FLEX options on SPY shares exclusively.

What is the expense ratio of FAUG?

FT Vest U.S. Equity Buffer ETF - August (FAUG) charges an expense ratio of 0.85%. This is the annual fee deducted from fund assets to cover management and operations.

How big is FAUG?

FT Vest U.S. Equity Buffer ETF - August (FAUG) manages $1.19B 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 FAUG actively managed or an index fund?

FAUG's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.

When was FAUG launched?

FT Vest U.S. Equity Buffer ETF - August (FAUG) launched in November 2019 and is managed by First Trust.

How has FAUG performed?

FAUG'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.