(QDEC) First Trust Exchange - - Ratings and Ratios

The First Trust Exchange-Traded Fund VIII - FT Cboe Vest Growth-100 Buffer ETF - December (BATS:QDEC) is designed to provide a defined outcome investment strategy. Under normal market conditions, the fund allocates substantially all of its assets to FLEX Options, which are customizable equity or index option contracts. These options are tied to the performance of the Invesco QQQ TrustSM, Series 1 (QQQ), a widely followed ETF tracking the Nasdaq-100 Index. FLEX Options allow for tailored contract terms, including strike prices, styles, and expiration dates, offering flexibility in hedging and return enhancement strategies. The fund is non-diversified, meaning it may concentrate its investments in a limited number of securities, which can increase risk.

As a buffer ETF, QDEC aims to provide downside protection while participating in the upside of the underlying index, up to a predetermined cap. This structure is particularly appealing to investors seeking risk mitigation in volatile markets. The funds investment strategy involves buying and selling FLEX Options, which are exchange-traded and provide transparency in pricing. The use of FLEX Options allows the fund to target specific outcomes, such as limiting losses during market downturns while capturing a portion of the gains during upswings.

From a technical standpoint, QDEC is currently trading at $27.30, slightly below its 20-day SMA of $28.12 and 50-day SMA of $27.91. The 200-day SMA stands at $26.73, indicating that the fund is trading near its long-term average. The Average True Range (ATR) of 0.29 suggests relatively low volatility in recent trading sessions. The funds average 20-day volume is 163,784 shares, reflecting moderate liquidity.

Over the next three months, QDEC is expected to face headwinds as the 20-day and 50-day SMAs are currently above the funds price, indicating potential resistance levels. However, the 200-day SMA remains below the current price, suggesting long-term support. The low ATR indicates that volatility is likely to remain subdued, but investors should monitor for potential increases in volatility as market conditions evolve. The funds AUM of $578.42 million underscores its popularity among investors seeking defined outcome strategies.