FT Vest Growth-100 Buffer ETF - March (QMAR) seeks to provide exposure to the growth of the Nasdaq-100 Index while offering downside protection through a defined outcome strategy. This buffer ETF uses options to limit losses to approximately 10-15% while capping upside gains, resetting annually each March.
How It Works
QMAR employs a sophisticated options overlay strategy that purchases protective puts and sells call options on the Nasdaq-100 Index to create a defined risk-return profile. The fund resets its buffer and cap levels each March, establishing new downside protection and upside limits for the upcoming 12-month period. This active options-based approach requires continuous monitoring and adjustment of derivatives positions to maintain the targeted outcome range throughout the annual cycle.
Key Features
- Provides 10-15% downside buffer protection against Nasdaq-100 losses while maintaining upside exposure to technology growth
- Annual reset in March allows investors to lock in new protection levels and upside caps
- Eliminates need for individual investors to construct complex options strategies on high-growth technology stocks
Risks
- This ETF can lose value if Nasdaq-100 declines exceed the buffer level, exposing investors to full losses beyond the protection threshold
- Upside gains are capped at predetermined levels, potentially missing significant technology rallies that exceed the annual ceiling
- Options strategies create complexity risk where derivatives may not perform as expected during extreme market volatility or liquidity crunches
Who Should Own This
Best suited for conservative growth investors with 1-year holding periods who want technology exposure with downside protection. Medium risk tolerance required as losses can still occur beyond buffer levels. Works as a satellite holding (5-15% allocation) for investors seeking defined outcomes rather than unlimited upside potential.