(DAPR) First Trust Exchange-Traded - Ratings and Ratios

The First Trust Exchange-Traded Fund VIII - FT Cboe Vest U.S. Equity Deep Buffer ETF - April (BATS:DAPR) is a defined outcome ETF designed to provide investors with exposure to the S&P 500 while incorporating downside protection. The fund achieves this by investing in FLEX Options, which are customized equity or index option contracts that allow for tailored terms such as strike prices, styles, and expiration dates. These options are traded on an exchange, offering transparency and liquidity. The fund is non-diversified, meaning it can concentrate its investments in a smaller number of securities, which may increase risk.

As part of the Defined Outcome ETF category, DAPR is structured to deliver specific risk-return profiles. Its primary objective is to limit downside exposure while participating in the upside of the S&P 500, making it appealing to risk-averse investors seeking equity exposure with built-in buffers against losses. The funds strategy is particularly relevant in volatile markets, where downside protection is a key concern for investors.

From a technical perspective, DAPR has shown stability in its price action. The SMA 20 and SMA 50 are closely aligned at 37.76 and 37.53, respectively, indicating a flat trend in the near term. The SMA 200 at 36.34 suggests longer-term upward momentum. The ATR of 0.13 reflects low volatility, highlighting the funds ability to maintain price stability. Average daily volume of 10,997 shares suggests moderate liquidity, which is typical for a fund of its size.

Fundamentally, DAPR manages assets of $265.06 million, indicating a scale that allows for efficient portfolio management. The funds focus on FLEX Options linked to the S&P 500 ETF positions it as a tool for investors seeking predictable outcomes in equity markets. Its non-diversified approach allows for targeted risk management, aligning with its defined outcome strategy.

Over the next three months, DAPR is expected to maintain its stable price range, supported by its low volatility profile. The SMA 200 gap suggests potential for gradual upside, while the tight SMA 20 and SMA 50 indicate limited near-term downside risk. With its focus on downside protection and exposure to the S&P 500, DAPR is well-positioned to attract investors seeking balanced risk-return profiles in uncertain market conditions.