First Trust launches dual directional buffer ETF for market volatility

Published 22/09/2025, 14:34
First Trust launches dual directional buffer ETF for market volatility

WHEATON, Ill. - First Trust Advisors L.P. announced Monday the launch of the FT Vest U.S. Equity Dual Directional Buffer ETF – August (Cboe:DLAG), expanding its Target Outcome ETF lineup to 124 funds with over $32 billion in total net assets. The launch reinforces First Trust’s position as a leading ETF provider trading in USD on major exchanges. Investors seeking detailed ETF analysis can access comprehensive metrics and screening tools through InvestingPro.

The new fund seeks to provide returns that either match the price return of the SPDR S&P 500 ETF Trust up to a predetermined cap or match the absolute value of the ETF’s negative returns up to a specified threshold, while providing a 10% buffer against excess losses over approximately one year.

DLAG represents the first dual directional ETF within First Trust’s Target Outcome lineup, designed to pursue positive returns whether markets move up or down within defined ranges.

"We are delighted to expand our lineup of Target Outcome ETFs with another innovative solution for financial professionals seeking to manage risk," said Ryan Issakainen, Senior Vice President and ETF Strategist at First Trust. For investors looking to analyze ETF performance and compare different buffer strategies, InvestingPro offers advanced ETF screening tools and expert insights to help make informed investment decisions.

Jeff Chang, President of Vest Financial LLC, the fund’s sub-advisor, noted that unlike traditional strategies, DLAG seeks to deliver gains from modest market declines while buffering against deeper losses.

The fund features a perpetual structure with caps reset at the end of each target outcome period based on prevailing market conditions. Investors who purchase shares after the period begins may experience different return potential and buffer availability than those who invest at the start.

First Trust Advisors L.P. manages approximately $290 billion in assets as of August 31, 2025, according to the company’s press release statement. Track this and other major ETF providers’ performance using InvestingPro’s advanced ETF screening platform, which offers real-time data and comprehensive analysis tools for institutional-grade research.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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