FT Vest U.S. Equity Moderate Buffer ETF - May

Frequently Asked Questions About GMAY

What does GMAY invest in?

GMAY 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 May. The fund foregoes some upside return, as well as the dividend component of IWM because the options are written on the price (not total) return version of the shares, in exchange for preventing realization of the first 15% of the losses in SPY value. Should the shares of SPY decline greater than 15%, investors participate in the downside performance on a $1 for $1 basis. Shares must be held over a specific period to pursue 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 targeted cap and buffer do not include the funds expense ratio and should be taken into consideration. The fund is actively managed and uses FLEX options on SPY shares exclusively.

What is the expense ratio of GMAY?

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

What is GMAY's distribution yield?

GMAY's trailing-twelve-month yield is —, calculated from the sum of distributions over the past year divided by the current price.

How does GMAY's covered-call strategy work?

GMAY sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside — when the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

How big is GMAY?

FT Vest U.S. Equity Moderate Buffer ETF - May (GMAY) manages $529.0M 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 GMAY actively managed or an index fund?

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