First Trust launches DLAG, dual directional buffer ETF tracking SPY

First Trust Advisors L.P. announced the launch of the FT Vest U.S. Equity Dual Directional Buffer ETF – August (Cboe: DLAG), expanding its Target Outcome ETF lineup to 124 funds with over $32 billion in total net assets.

DLAG seeks to provide returns that either match the price return of the SPDR S&P 500 ETF Trust (SPY) up to a predetermined upside cap or match the absolute value of negative price returns up to a specified threshold, while providing a 10% buffer against losses exceeding that threshold over approximately one year.

The fund represents the first dual directional ETF within First Trust's Target Outcome lineup. According to the press release, it aims to deliver gains from modest market declines while buffering against deeper losses.

Investors who purchase shares after the first day of the Target Outcome Period will likely have different return potential and buffer protection than those who bought at the start. At the end of each Target Outcome Period, the upside cap resets based on prevailing market conditions.

The fund has a perpetual structure and may be held indefinitely. Vest Financial LLC serves as sub-advisor to the fund.

First Trust's Target Outcome ETF lineup has grown 34% year-over-year as of August 29, 2025. The company manages approximately $290 billion in collective assets under management or supervision as of August 31, 2025.

The fund employs FLEX Options to implement its strategy, which carries risks including potential counterparty default, liquidity concerns, and the possibility that the buffer protection may not be available to investors who purchase shares mid-period.

You May Also Be Interested In

• PreveCeutical closes second tranche of private placement for $245,000
• Venu Holding enters $250 million at-the-market stock offering agreement
• TechCreate Group faces NYSE American delisting proceedings