First Trust launches DGOC buffer ETF with 10% downside protection

First Trust Advisors L.P. launched the FT Vest U.S. Buffer & Digital Return ETF – October (Cboe: DGOC), expanding its Target Outcome ETF lineup to 125 funds with over $33 billion in total net assets.

DGOC seeks to provide investors with a buffer against the first 10% of losses on the price returns of the SPDR S&P 500 ETF Trust while offering a predetermined digital return if the underlying ETF appreciates, remains unchanged, or decreases by 10% or less over the target outcome period.

The fund uses FLEX Options to implement its strategy. Investors purchasing shares after the first day of the target outcome period will likely have different return potential and buffer than those who purchased at the start, according to the company's statement.

"DGOC introduces a new way to pursue target outcomes—offering a predetermined digital return when the market is flat, modestly down, or rising," said Jeff Chang, President of Vest Financial LLC, the fund's sub-advisor.

The ETF has a perpetual structure and may be held indefinitely. At the end of each target outcome period, the digital return resets to prevailing market conditions.

First Trust's Target Outcome ETF lineup has grown 32% year-over-year as of September 30, 2025. First Trust Advisors L.P. manages approximately $299 billion in collective assets under management or supervision as of September 30, 2025.

The fund carries various risks including the possibility that investors could lose their entire investment, counterparty risk from FLEX Options, and market volatility. Information in this article is based on the company's press release.

You May Also Be Interested In

• Battery X Metals adds auto industry advisor to board
• XORTX to voluntarily delist from TSX Venture Exchange
• Lockheed Martin wins $2.8B in Defense contracts for F-35, helicopters