Buffer Series A BALANCE OF UPSIDE PERFORMANCE POTENTIAL WITH A DOWNSIDE BUFFER - 1-866-848-9727 | www.ftportfolios.com - First Trust
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Buffer Series
A BALANCE OF UPSIDE PERFORMANCE POTENTIAL
WITH A DOWNSIDE BUFFER
1-866-848-9727 | www.ftportfolios.comMinimizing Loss with Downside Buffers
Target Outcome ETFs® (the “funds”) are actively managed exchange-traded funds (“ETFs”) that seek to provide targeted exposure to underlying ETFs (also referred to as reference
asset) that are based on market indexes, while providing predetermined investment outcomes, removing some of the uncertainty associated with investing. The Target Outcome
Buffer Series ETFs are designed to help equity investors maintain a level of protection in down markets, by seeking to provide a defined downside buffer, over a specified Target Outcome
Period, while taking advantage of growth opportunities in up markets to a predetermined cap. The cap and buffer are reset at the end of each outcome period. However, the funds
may be held indefinitely, providing investors a buy and hold investment opportunity.
Losses can have a greater impact on investments than gains because the money remaining after the loss must work harder to get back to its original level. The math of percentages
shows that as losses get larger, the return necessary to recover to the break-even point increases at a much faster rate. A loss of 10% necessitates an 11% gain to recover. Increase
that loss to 25%, and it takes a 33% gain to get back to break-even. A 50% loss requires a 100% gain to get back to where the investment value started. Target Outcome ETFs® may
encourage investors to stay invested by providing a defined buffer against potential losses. Traditionally, investment strategies that offer specific payoff profiles have been offered
through structured products, typically issued by banks or other financial institutions. The funds offer a way to gain access to outcome-based investing—specifically to buffer
against a level of downside risk while allowing growth to a maximum cap—eliminating bank credit risk, in a convenient, flexible investment vehicle.
150%
Minimizing losses 100%
100% can significantly
impact the value of
50% a portfolio. 33%
Investment Return
25%
11%
1%
0%
-1% -10%
-20% -25%
-50%
-50%
-100%
-150%
% Lost % Required to Recover
For illustrative purposes only and not indicative of any actual investment.
PROVIDE A BUFFER AGAINST DOWNSIDE LOSSES PARTICIPATE IN UPSIDE PERFORMANCE
Predetermined downside buffer levels. Capture growth potential, subject to a cap, in up markets.
POTENTIAL ADVANTAGES OF TARGET OUTCOME ETFs® BUFFER SERIES
Targeted Outcome: Targeted market exposure with defined No Bank Credit Risk: Underlying assets will consist of FLexible
downside buffer levels, over a specified period, removes some of EXchange® Options (“FLEX Options”) that reference the underlying ETF
the uncertainty associated with investing. and are issued and guaranteed by the Options Clearing Corporation
(OCC). FLEX Options are not exposed to the same unsecured credit risk
Perpetual Structure: The cap and buffer are reset at the end of of issuing banks associated with credit linked instruments.
each outcome period. However, the funds may be held indefinitely,
providing investors a buy and hold investment opportunity. While Limited Volatility: Provide exposure to underlying ETF with
the cap may change with each subsequent outcome period, the less volatility. Exposure to the price return of the underlying ETF
buffer will always be 10% or 25% per the prospectus. through FLEX Options may provide a less volatile return profile
than the underlying asset, and when combined with the downside
Flexible, Liquid, and Transparent: The funds offer the buffer, may offer an attractive portfolio management tool.
convenience and trading flexibility of an ETF, with daily liquidity.
The option positions, remaining buffers and caps are disclosed on a
daily basis on the First Trust website, with tools to reference when
making investments intra-period.How Does a Target Outcome ETF® Work?
TARGET POTENTIAL
MARKET DOWNSIDE
OUTCOME UPSIDE
EXPOSURE BUFFERS
PERIOD PARTICIPATION
Exposure to an underlying ETF Provides structured returns on Exposure to the potential Designed to buffer potential
that is based on a market index a point-to-point basis for a upside of the reference asset, losses of the reference asset
predetermined period of time to a maximum cap to defined levels
RETURN SCENARIO EXAMPLES FOR A TARGET OUTCOME PERIOD
Underlying ETF Price Return Target Outcome ETF® •••
••••••
• • • Buffered Range
Illustrative example of a fund with a buffer that begins at approximately 0%:
Underlying ETF Price Return FT Cboe Equity Buffer ETF Series*
20% Performance Cap
10%
0%
-10%
Buffer*
-20%
UNDERLYING ETF DOWN > BUFFER LIMIT UNDERLYING ETF DOWN ≤ BUFFER LIMIT UNDERLYING ETF UP ≤ CAP UNDERLYING ETF UP > CAP
Since the first 10% loss is protected, the fund’s Since the first 10% loss is protected, the Since the upside is below the performance Since the upside exceeded the cap level,
total NAV return would be the underlying fund’s NAV total return would be zero. cap level, the fund’s NAV total return would the fund’s NAV total return would be equal
ETF’s price return less the buffered amount. be approximately equal to the price return to the performance cap.
of the underlying ETF.
Illustrative example of a fund with a buffer that begins after an initial potential loss:
Underlying ETF Price Return FT Cboe Equity Deep Buffer ETF Series**
20%
Performance Cap
10%
0%
-10%
-20%
-30%
Buffer**
-40%
UNDERLYING ETF DOWN > BUFFER LIMIT INITIAL LOSS < UNDERLYING ETF DOWN UNDERLYING ETF UP ≤ CAP UNDERLYING ETF UP > CAP
Since the protection begins after the initial ≤ BUFFER LIMIT Since the upside is below the performance Since the upside exceeded the cap level,
loss, the fund’s NAV total return would be Since the protection begins after the initial cap level, the fund’s NAV total return would the fund’s NAV total return would be
less the buffered amount. loss, the fund’s NAV total return would be be approximately equal to the price return equal to the performance cap.
the initial loss amount. of the underlying ETF.
The examples are based on hypothetical reference asset returns and do not account for payment of fees and expenses so the actual return would be lower. A fund may not be able to achieve the hypothetical returns shown here.
*Buffer ETF series seeks to shield investors against losses from 0 to -10%, over the outcome period.
**Deep Buffer ETF series seeks to shield investors against losses from -5% to -30%, over the outcome period.
1-866-848-9727 | www.ftportfolios.comPortfolio Construction
Target Outcome ETFs® are managed using a “target outcome strategy” which seeks to produce a predetermined investment outcome based on the performance of the
underlying ETF, through the use of FLEX Options. FLEX Options are customized options contracts that provide investors the ability to customize terms of an option, including
exercise process, underlying reference assets and expiration dates. The examples below illustrate the expected 1-year return profiles of the funds before fees and expenses.
1-YEAR RETURN PROFILE - ILLUSTRATIVE EXAMPLES
Maximum Growth (Cap)
Capped Maximum Growth (Cap)
Deep Buffer ETF**
Return Capped
Buffer ETF*
d Return
0% 0%
ffere rn
tur
n Bu etu
Re R
d
ffere
Bu
Buffered Buffered
Amount Amount
0% 0%
Underlying ETF Performance Underlying ETF Performance
HOW DO THEY WORK?
Layer Process Explanation
Set Underlying
1 The portfolio will purchase a low strike call option (near zero), replicating a long position in the price returns of the underlying ETF.
ETF Exposure
The portfolio will buy a put option on the underlying ETF and then simultaneously sell a put option at a price level below the
2 Set Buffer Limit price of the underlying ETF, that is equal to the predetermined buffer level. The purchased put option provides a downside
buffer while the sold put option will stop the buffer at the predetermined level.
The portfolio will sell a call option with the strike price at the capped level, generating the premium to help pay for the
3 Set Upside Cap downside buffer. Once the underlying ETF increases to the strike price of the sold call option, the fund will hit its cap and no
longer participate in any further gains.
The examples are for illustrative purposes only and are not indicative of any actual investment. The charts above illustrate potential return payoffs at the end of approximately one year and are based on hypothetical reference asset
returns. The charts do not account for payment of fees and expenses. The funds may not be able to achieve the hypothetical returns set forth above. The outcome may only be realized for an investor who holds shares on the first day
of the Target Outcome Period and continues to hold them on the last day of the Target Outcome Period. There is no guarantee that the outcomes for a Target Outcome Period will be realized.
*Buffer ETF series seeks to shield investors against losses from 0 to -10%, over the outcome period.
**Deep Buffer ETF series seeks to shield investors against losses from -5% to -30%, over the outcome period.
Definitions
An option is a contractual obligation between a buyer and a seller. There are two types of options known as “calls” and “puts.” The buyer of a call option has the right, but not the obligation, to purchase an agreed upon
quantity of an underlying asset from the writer (seller) of the option at a predetermined price (the strike price) within a certain window of time (until the option’s expiration), creating a long position. “Long” is an investment
term used to describe ownership of the securities. A put option is the opposite of a call option and gives the buyer the right to sell to the writer (seller) the underlying asset at the strike price until the option’s expiration. If
the strike price is reached, the buyer has the right to exercise the option. For this right, the buyer pays a fee to the seller, called a premium.
Target Outcome Period refers to the amount of time between when the FLEX Options were purchased and when they will expire. In the case of these ETFs, the Target Outcome Period is about one year.
Underlying ETF or Reference Asset is the underlying asset which the FLEX Option prices are based on.
Cap is a limit on the possible return that an ETF can provide at the end of an outcome period. This is also referred to as the “maximum return potential”. This means that if the performance of the reference asset is above the cap
at the end of an outcome period, the return an ETF provides will not reflect this full performance. Instead, only the reference asset’s performance up to the cap is used to determine an ETF’s return.
Buffer is like a cushion that, at the end of the outcome period, absorbs downside loss of the reference asset up to the buffer level (before fees and expenses).Target Outcome Period Performance
TARGET OUTCOME TIMELINE
Target Outcome New Target Outcome
Period Starts Period Begins
FLEX Options purchased FLEX Options purchased
Cap is determined Upside Cap and buffer level reset
Target Outcome New Target Outcome
Period Ends Period Ends
FLEX Options expire Process repeats at the end of
each Target Outcome Period
DAILY PERFORMANCE EXAMPLE
$1,100.00
$1,050.00
Target Outcome ETF
Base Value
$1,000.00
$950.00 Buffer
Reference Asset
$900.00
. $850.00
$800.00
Beginning of Outcome Period End of Outcome Period
This example is for illustrative purposes only and not indicative of any actual investment. The chart is meant only to show that a Target Outcome Investment and the reference asset may differ in performance over an
outcome period under typical conditions. Actual investment performance will vary. The outcome may only be realized for an investor who holds shares on the first day of the Target Outcome Period and
continues to hold them on the last day of the Target Outcome Period.
Performance Over Time
The performance of a Target Outcome ETF® will not match the performance of the underlying ETF on a one-to-one basis throughout the Target Outcome Period due to the
nature of the underlying FLEX Options in the portfolio.
Directionally Correlated
A fund’s underlying ETF will generally be directionally correlated. As FLEX Options near expiration, the performance gap between the options and the underlying ETF would
be expected to narrow due to option values approaching their intrinsic values.
Buy and Hold
To realize the full potential value of the underlying FLEX Options, investors are encouraged to hold the fund for the duration of the Target Outcome Period.
1-866-848-9727 | www.ftportfolios.comWho Might Be Interested in the Funds?
?
Investors Saving for Life’s Milestones Investors Reluctant to Fully Participate in Financial Markets
The funds gives investors the ability to prioritize a limited buffer The funds may be attractive to investors who are looking for the
against downside losses (if held for the full Target Outcome Period) ability to be invested in the financial markets without assuming the
ahead of potential upside returns. full downside risk of investing. The funds seek to limit the uncertainty
of market exposure over annual periods by combining a downside
buffer with upside growth potential, to the predetermined cap
levels.
Investors With a Moderately Bullish View on Market Returns Investors Looking for a Complement to their Holdings
The funds may appeal to investors who anticipate moderate market The funds are an agile tool for risk management while
returns and are willing to forgo some potential upside, while participating in the upside potential of the underlying ETF up to
gaining a buffer on the downside. the capped amount.
PORTFOLIO FIT
The funds are designed to help investors maintain a limited buffer in down markets, while taking advantage of growth opportunities (up to a cap) in up markets. They can
potentially fit in two places in an investor’s portfolio:
Low Risk/Hedged Equity Alternatives
A common way to reduce downside risk is to reduce allocation to equities; The funds’ risk/return characteristics provide a limited downside buffer while
however, this creates the risk of missing out on potential upside. The funds capping some upside potential, similar to alternative investments such as
offer an alternative approach that seeks to deliver some benefits of upside hedge funds. As a result, the funds may be used as potentially cost-competitive
from equities with reduced downside risk, allowing investors to stay invested. replacements to hedge funds.
It is important to note that there are differences between the investment objectives, risks, liquidity and tax treatment of the Flex Options in which the funds invest versus the securities that comprise hedge funds.
Hedge funds pool money from investors and invest in securities or other types of investments. Hedge funds generally have more flexibility than ETFs to pursue investments and strategies that may increase the risk
of investment losses. Hedge funds are limited to wealthier investors who can afford the higher fees and risks of hedge fund investing and institutional investors.
ABOUT CBOE VEST
Cboe Vest is the creator of Target Outcome Investments®, which strive to buffer losses, amplify gains or provide consistent income to a diverse spectrum of investors. Today,
Cboe Vest’s Target Outcome StrategiesTM are available in mutual funds, exchange-traded funds (ETFs), unit investment trusts (UITs), collective investment trusts (CITs), and
customizable managed accounts / sub-advisory services.
PORTFOLIO MANAGERS
Karan Sood Howard Rubin
CEO, Managing Director of Cboe Vest Managing Director of Cboe Vest
August 2016 August 2019
First Target First FT Cboe Vest
June 2012
Outcome Fund April 2019 Canadian Target
Vest Founded
Cboe Vest Affiliation Outcome ETF
May 2013 January 2016
First Target Vest enters partnership January 2017 with First Trust
Outcome Strategy with Cboe Second Target Outcome Fund
2012 2013 2014 2015 2016 2017 2018 2019 2020
October 2012 April 2016 April 2019
First Target November 2019
Vest Files Patent for System and August 2015 October 2017 First FT Cboe First FT Cboe Vest
Method for Outcome-Oriented Outcome Indexes October 2016 Vest Target
Vest creates technology First Target U.S. Target
Investing. Birth of Target Outcome Vest is Rebranded Outcome UIT®
platform for Target Outcome ETF Filing Outcome ETFs®
Investment concept. as Cboe Vest
Outcome InvestmentsProduct List
Ticker Underlying ETF Cap (Net)1 Buffer Outcome Period Ticker Underlying ETF Cap (Net)1 Buffer Outcome Period
U.S. EQUITY: FT Cboe Vest Equity Buffer ETF Series U.S EQUITY: FT Cboe Vest Equity Deep Buffer Series2
FJAN SPY 14.50% (13.64%) 10% 1/19/2021 – 1/21/2022 DJAN SPY 8.20% (7.34%) 25% 1/19/2021 – 1/21/2022
FFEB SPY 15.85% (15.00%) 10% 2/22/2021 – 2/18/2022 DFEB SPY 8.85% (8.00%) 25% 2/22/2021 – 2/18/2022
FMAR SPY 14.20% (13.35%) 10% 3/22/2021 – 3/18/2022 DMAR SPY 9.30% (8.45%) 25% 3/22/2021 – 3/18/2022
FAPR SPY 12.00% (11.15%) 10% 4/19/2021 – 4/14/2022 DAPR SPY 7.50% (6.65%) 25% 4/19/2021 – 4/14/2022
FMAY SPY 12.50% (11.15%) 10% 5/24/2021 – 5/20/2022 DMAY SPY 7.60% (6.75%) 25% 5/24/2021 – 5/20/2022
FJUN SPY 11.70% (10.85%) 10% 6/21/2021 – 6/17/2022 DJUN SPY 7.06% (6.21%) 25% 6/21/2021 – 6/17/2022
FJUL SPY 11.70% (10.85%) 10% 7/19/2021 – 7/15/2022 DJUL SPY 7.30% (6.45%) 25% 7/19/2021 – 7/15/2022
FAUG SPY 14.71% (13.86%) 10% 8/24/2020 – 8/20/2021 DAUG SPY 8.63% (7.78%) 25% 8/24/2020 – 8/20/2021
FSEP SPY 16.50% (15.65%) 10% 9/21/2020 – 9/17/2021 DSEP SPY 9.25% (8.40%) 25% 9/21/2020 – 9/17/2021
FOCT SPY 16.22% (15.37%) 10% 10/19/2020 - 10/15/2021 DOCT SPY 9.34% (8.49%) 25% 10/19/2020 - 10/15/2021
FNOV SPY 13.72% (12.87%) 10% 11/23/2020 – 11/19/2021 DNOV SPY 7.75% (6.90%) 25% 11/23/2020 – 11/19/2021
FDEC SPY 14.00% (13.15%) 10% 12/21/2020 – 12/17/2021 DDEC SPY 8.00% (7.15%) 25% 12/21/2020 – 12/17/2021
U.S EQUITY: FT Cboe Vest Growth -100 Buffer ETF Series INTERNATIONAL: FT Cboe Vest International Equity Buffer ETF Series
QMAR QQQ 15.51% (14.61%) 10% 3/22/2021 – 3/18/2022 YMAR EFA 14.18% (13.29%) 10% 3/22/2021 – 3/18/2022
QJUN QQQ 13.00% (12.10%) 10% 6/21/2021 – 6/17/2022 YJUN EFA 11.81% (10.91%) 10% 6/21/2021 – 6/17/2022
QDEC QQQ 17.04% (16.14%) 10% 12/21/2020 – 12/17/2021 YDEC EFA 13.79% (12.89%) 10% 12/21/2020 – 12/17/2021
COMMODITIES: FT Cboe Vest Gold Strategy Quarterly Buffer Series3
BGLD GLD 3.94% (3.71%) 10% 6/1/2021 – 8/31/2021
SPY is an exchange-traded fund (ETF) that is designed to track the returns of the S&P 500 Index.
S&P 500 Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance. Investors cannot invest directly in an index.
QQQ - Nasdaq 100 - The Invesco QQQ TrustSM, Series 1 is an exchange-traded fund based on the Nasdaq 100 index. The index is a basket of the 100 largest, most actively traded U.S companies listed on the Nasdaq stock
exchange. The Index includes companies from various industries except for the financial industry, like commercial and investment banks.
EFA - iShares MSCI EAFE ETF - The iShares MSCI EAFE ETF is an exchange-traded fund based on the MSCI EAFE index that seeks to track the investment results of an index composed of large- and mid-capitalization
developed market equities, excluding the U.S. and Canada.
GLD - SPDR® Gold Trust is an exchange-traded investment trust that holds physical gold bars and seeks to provide investment results that, before expenses, correspond generally to the price performance of gold
bullion.
1
The gross cap is before fees, expenses and taxes. The net cap is after fees and expenses, excluding brokerage commissions, trading fees, taxes and extraordinary expenses not included in the funds’ management
fee. The upside cap is set by a fund on inception date of the Target Outcome Period and is dependent upon market conditions at the time. The cap investors will experience may be different than what is
illustrated herein.
2
Deep Buffer ETFs seeks to shield investors against losses from -5% to - 30%, over the outcome period.
3
BGLD seeks to shield investors against losses from -5% to -15%, over the outcome period.
See next page for definitions and risk considerations.
1-866-848-9727 | www.ftportfolios.comRisks & Considerations
You should consider a fund’s investment objectives, risks, and charges and expenses carefully before investing. Contact First Trust Portfolios L.P. at 1-800-621-1675 or visit
www.ftportfolios.com to obtain a prospectus or summary prospectus which contains this and other information about a fund. The prospectus or summary prospectus should
be read carefully before investing.
Risk Considerations A fund with significant exposure to a single asset class, country, region, industry, or sector may be more
A Target Outcome fund has characteristics unlike many other traditional investment products and may not affected by an adverse economic or political development than a broadly diversified fund.
be appropriate for all investors. A fund does not invest directly in FLEX Options. Rather, it invests in a wholly-owned subsidiary, which will
Investors buying or selling fund shares on the secondary market may incur customary brokerage have the same investment objective as a fund, but unlike a fund, it may invest without limitation in FLEX
commissions. Market prices may differ to some degree from the net asset value of the shares. Investors who Options. The subsidiary is not registered under the 1940 Act and is not subject to all the investor protections
sell fund shares may receive less than the share’s net asset value. Shares may be sold throughout the day on of the 1940 Act. Thus, a fund, as an investor in the subsidiary, will not have all the protections offered to
the exchange through any brokerage account. However, unlike mutual funds, shares may only be redeemed investors in registered investment companies.
directly from a fund by authorized participants in very large creation/redemption units. If a fund’s authorized If the underlying ETF experiences gains during a Target Outcome Period, a fund will not participate in those
participants are unable to proceed with creation/redemption orders and no other authorized participant is gains on a one-to-one basis or beyond the cap. In the event an investor purchases fund shares after the first
able to step forward to create or redeem, fund shares may trade at a discount to a fund’s net asset value and day of a Target Outcome Period and a fund has risen in value to a level near to the cap, there may be little
possibly face delisting. or no ability for that investor to experience an investment gain on their fund shares. Similarly, in the event
A fund’s shares will change in value, and you could lose money by investing in a fund. One of the principal an investor purchases fund shares after the first day of a Target Outcome Period, the buffer a fund seeks to
risks of investing in a fund is market risk. Market risk is the risk that a particular stock owned by a fund, fund provide may not be available. A shareholder may lose their entire investment.
shares or stocks in general may fall in value. There can be no assurance that a fund’s investment objective Trading on the exchange may be halted due to market conditions or other reasons. There can be no assurance
will be achieved. The outbreak of the respiratory disease designated as COVID-19 in December 2019 has that the requirements to maintain the listing of a fund on the exchange will continue to be met or be
caused significant volatility and declines in global financial markets, which have caused losses for investors. unchanged.
While the development of vaccines has slowed the spread of the virus and allowed for the resumption of Securities issued or guaranteed by federal agencies and U.S. government sponsored instrumentalities may or
“reasonably” normal business activity in the United States, many countries continue to impose lockdown may not be backed by the full faith and credit of the U.S. government.
measures in an attempt to slow the spread. Additionally, there is no guarantee that vaccines will be effective Large inflows and outflows may impact a new fund’s market exposure for limited periods of time.
against emerging variants of the disease.
The funds intend to qualify as “regulated investment companies” (“RICs”), however, the federal income tax
In managing a fund’s investment portfolio, the portfolio managers will apply investment techniques and risk treatment of certain aspects of the proposed operations of the funds are not entirely clear. If, in any year, the
analyses that may not have the desired result. funds fail to qualify as RICs under the applicable tax laws, the funds would be taxed as ordinary corporations.
There can be no assurance that an active trading market for fund shares will develop or be maintained. The funds are classified as “non-diversified” and may invest a relatively high percentage of its assets in a
The investment strategy is designed to deliver returns that match the reference asset if a fund’s shares are limited number of issuers. As a result, the funds may be more susceptible to a single adverse economic or
bought on the day on which a fund enters into the Flexible Exchange Options® (“FLEX Options”) (i.e., the first regulatory occurrence affecting one or more of these issuers, experience increased volatility and be highly
day of a Target Outcome Period) and held until those FLEX Options expire at the end of the Target Outcome concentrated in certain issuers.
Period. If an investor does not hold its fund shares for an entire Target Outcome Period, the returns realized First Trust Advisors L.P. is registered as a commodity pool operator and commodity trading advisor and is also
by that investor may not match those a fund seeks to achieve. In the event an investor purchases fund shares a member of the National Futures Association.
after the first day of a Target Outcome Period or sells shares prior to the expiration of the Target Outcome
Period, the value of that investor’s investment in fund shares may not be buffered against a decline in the First Trust Advisors L.P. is the adviser to the funds. First Trust Advisors L.P. is an affiliate of First Trust Portfolios
value of the reference asset and may not participate in a gain in the value of the reference asset up to the cap L.P., the funds’ distributor.
for the investor’s investment period. The information presented is not intended to constitute an investment recommendation for, or advice to, any
A new cap is established at the beginning of each Target Outcome Period and is dependent on prevailing specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary
market conditions. As a result, the cap may rise or fall from one Target Outcome Period to the next and is capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial
unlikely to remain the same for consecutive Target Outcome Periods. professionals are responsible for evaluating investment risks independently and for exercising independent
judgment in determining whether investments are appropriate for their clients.
A fund that effects all or a portion of its creations and redemptions for cash rather than in-kind may be less
tax-efficient. Cboe® is a registered trademark of Cboe Exchange, Inc., which has been licensed for use in the name
of the funds. The funds are not sponsored, endorsed, sold or marketed by Cboe Exchange, Inc. or any
Commodity prices can have significant volatility, and exposure to commodities can cause the value of a fund’s of its affiliates (“Cboe”) or their respective third-party providers, and Cboe and its third-party providers
shares to decline or fluctuate in a rapid and unpredictable manner. make no representation regarding the advisability of investing in the funds and shall have no liability
A fund may be subject to the risk that a counterparty will not fulfill its obligations which may result in whatsoever in connection with the funds.
significant financial loss to a fund. The funds are not sponsored, endorsed, sold or promoted by SPDR® S&P 500® ETF Trust, PDR, or Standard &
Certain securities are subject to call, credit, inflation, interest rate, and prepayment risks. These risks could Poor’s® (together with their affiliates hereinafter referred to as the “Corporations”). The Corporations have not
result in a decline in a security’s value and/or income, increased volatility as interest rates rise or fall and have passed on the legality or suitability of, or the accuracy or adequacy of, descriptions and disclosures relating to
an adverse impact on a fund’s performance. the funds or the FLEX Options. The Corporations make no representations or warranties, express or implied,
As the use of Internet technology has become more prevalent in the course of business, funds have become regarding the advisability of investing in the funds or the FLEX Options or results to be obtained by the funds
more susceptible to potential operational risks through breaches in cyber security. or the FLEX Options, shareholders or any other person or entity from use of the SPDR® S&P 500® ETF Trust.
A fund may invest in FLEX Options that reference an ETF, which subjects a fund to certain of the risks of The Corporations have no liability in connection with the management, administration, marketing or trading
owning shares of an ETF as well as the types of instruments in which the reference ETF invests. Because of the funds or the FLEX Options.
a fund may hold FLEX Options that reference the index and/or reference ETFs, a fund has exposure to the The funds are not sponsored, endorsed, sold or promoted by Invesco QQQ TrustSM, Series1, Invesco, or Nasdaq,
equity securities markets. The FLEX Options held by a fund will be exercisable at the strike price only on Inc., (together with their affiliates hereinafter referred to as the “Corporations”). The Corporations have not
their expiration date. Prior to the expiration date, the value of the FLEX Options will be determined based passed on the legality or suitability of, or the accuracy or adequacy of, descriptions and disclosures relating to
upon market quotations or other recognized pricing methods. In the absence of readily available market the funds or the FLEX Options. The Corporations make no representations or warranties, express or implied,
quotations for fund holdings, a fund’s advisor may determine the fair value of the holding, which requires the regarding the advisability of investing in the funds or the FLEX Options or results to be obtained by the funds
advisor’s judgement and is subject to the risk of mispricing or improper valuation. There can be no guarantee or the FLEX Options, shareholders or any other person or entity from use of the Invesco QQQ TrustSM. The
that a liquid secondary trading market will exist for the FLEX Options and FLEX options may be less liquid Corporations have no liability in connection with the management, administration, marketing or trading of
than exchange-traded options. the funds or the FLEX Options.
The price of gold bullion can be significantly affected by international monetary and political developments. MSCI EAFE ETF, BFA, or MSCI Inc., (together with their affiliates hereinafter referred to as the “Corporations”)
In addition, worldwide metal prices may fluctuate substantially over short periods of time, and as a result, a have not passed on the legality or suitability of, or the accuracy or adequacy of, descriptions and disclosures
fund’s share price may be more volatile than other types of investments. relating to funds or the FLEX Options. The Corporations make no representations or warranties, express or
A fund may be a constituent of one or more indices which could greatly affect a fund’s trading activity, size implied, regarding the advisability of investing in the funds or the FLEX Options or results to be obtained by
and volatility. the funds or the FLEX Options, shareholders or any other person or entity from use of iShares MSCI EAFE ETF.
The Corporations have no liability in connection with the management, administration, marketing or trading
Large inflows and outflows may impact a new fund’s market exposure for limited periods of time. of the funds or the FLEX Options.
A fund classified as “non-diversified” may invest a relatively high percentage of its assets in a limited number The fund is not sponsored, endorsed, sold or promoted by SPDR® Gold Trust and WGTS, (together with their
of issuers. As a result, a fund may be more susceptible to a single adverse economic or regulatory occurrence affiliates hereinafter referred to as the “Corporations”). The Corporations have not passed on the legality
affecting one or more of these issuers, experience increased volatility and be highly concentrated in certain or suitability of, or the accuracy or adequacy of, descriptions and disclosures relating to the fund or the
issuers. FLEX Options. The Corporations make no representations or warranties, express or implied, regarding the
A fund and a fund’s advisor may seek to reduce various operational risks through controls and procedures, but advisability of investing in the fund or the FLEX Options or results to be obtained by the fund or the FLEX
it is not possible to completely protect against such risks. Options, shareholders or any other person or entity from use of the Underlying ETF. The Corporations have
The use of derivatives, including options can lead to losses because of adverse movements in the price or no liability in connection with the management, administration, marketing or trading of the fund or the
value of the underlying asset, index or rate, which may be magnified by certain features of the derivatives. FLEX Options.
If, in any year, a fund which intends to qualify as a Registered Investment Company (RIC) under the applicable
tax laws fails to do so, it would be taxed as an ordinary corporation.
Not FDIC Insured | Not Bank Guaranteed | May Lose Value TOFDIG000721You can also read
