FT Vest U.S. Small Cap Moderate Buffer ETF - May

Frequently Asked Questions About SMAY

What does SMAY invest in?

First Trust Exchange-Traded Fund VIII - FT Vest U.S. Small Cap Moderate Buffer ETF - May is an exchange traded fund launched and managed by First Trust Advisors LP. The fund is co-managed by Vest Financial, LLC. It invests through derivatives in stocks of companies operating across diversified sectors. The fund uses derivatives such as FLexible EXchange Options that reference the performance of the iShares Russell 2000 ETF to create its portfolio. It invests in growth and value stocks of small-cap companies. First Trust Exchange-Traded Fund VIII - FT Vest U.S. Small Cap Moderate Buffer ETF - May was formed on May 19, 2023 and is domiciled in the United States.

What is the expense ratio of SMAY?

FT Vest U.S. Small Cap Moderate Buffer ETF - May (SMAY) charges an expense ratio of 0.90%. This is the annual fee deducted from fund assets to cover management and operations.

What is SMAY's distribution yield?

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

How does SMAY's covered-call strategy work?

SMAY 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 SMAY?

FT Vest U.S. Small Cap Moderate Buffer ETF - May (SMAY) manages $107.5M 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 SMAY actively managed or an index fund?

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