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

The First Trust Exchange-Traded Fund VIII - FT Cboe Vest U.S. Equity Moderate Buffer ETF - February (BATS:GFEB) is designed to provide investors with exposure to the S&P 500 while incorporating a buffer against moderate losses. Under normal market conditions, the fund allocates substantially all of its assets to FLEX® Options, which are customized exchange-traded contracts referencing the SPDR® S&P 500® ETF Trust (SPY). These options allow for tailored terms, including strike prices, expiration dates, and settlement styles, offering a unique risk-management approach. The fund is classified as non-diversified, meaning it may concentrate its investments in a limited number of securities.

As a defined outcome ETF, GFEB aims to deliver returns tied to the S&P 500 with a built-in buffer to mitigate losses during market downturns. The funds strategy involves purchasing FLEX Options, which are over-the-counter contracts listed on exchanges for transparency and liquidity. By leveraging these options, the fund seeks to provide a risk-adjusted return profile for investors seeking equity exposure with downside protection.

The funds technical profile indicates moderate trading activity, with an average 20-day volume of 123,675 shares. Its current price of $37.84 is slightly above its 50-day SMA of $37.66 but below its 20-day SMA of $37.88, signaling a near-term consolidation. The ATR of 0.17 reflects low volatility, suggesting stable price movements. The funds assets under management (AUM) of $255.27 million underscore its moderate scale in the ETF universe.