First Trust launches three new ETFs

First Trust Advisors L.P. (“First Trust” or “FTA”), a leading provider of exchange-traded funds (“ETFs”) and outcome-based strategies, announced the launch of three new actively managed ETFs this week:

• FT Vest Growth Strength & Target Income ETF (Nasdaq: FGSI) launched June 26, 2025, and seeks to provide current income that, when annualized, is approximately 8% above the annual dividend yield of the S&P 500® Index1 by investing primarily in U.S. exchange-traded equity securities intended to track The Growth StrengthTM Index and by utilizing an “option strategy” consisting of writing (selling) U.S. exchange-traded call options on the S&P 500® Index, or exchange-traded funds that track the S&P 500® Index. The fund’s secondary objective is capital appreciation.
• FT Vest Laddered Enhance & Moderate Buffer ETF (Cboe: BUFX) launched June 25, 2025, and seeks capital appreciation by investing in a laddered portfolio of twelve FT Vest U.S. Equity Enhance & Moderate Buffer ETFs. These underlying ETFs invest in FLEX Options based on the price return of the SPDR® S&P 500® ETF Trust (“SPY”) and each seeks to provide a 15% downside buffer while offering approximately 2x any positive SPY price return, up to a predetermined cap, over a one-year Target Outcome Period.1
• FT Vest Laddered Max Buffer ETF (Cboe: BUFH) launched June 25, 2025, and seeks capital appreciation by investing in a laddered portfolio of twelve FT Vest U.S. Equity Max Buffer ETFs. These ETFs invest in FLEX Options in order to provide investors with returns (before fees and expenses) that match the price return of SPY and each seeks to provide the maximum available downside buffer while delivering upside potential up to a predetermined cap, over a one-year Target Outcome Period.2

Collectively referred to as “the funds,” these are the latest additions to First Trust’s Target Outcome ETF lineup, which now includes 118 funds with over $29.7 billion in total net assets as of May 30, 2025, an increase of 39% year over year. The funds are sub-advised by Vest Financial LLC (“Vest”), the creator of Target Outcome Investments® and Target Income Strategies®.

Each of the new funds leverages a Target Outcome investing framework to address specific investor goals: generating income and growth potential (FGSI), seeking enhanced returns with a downside buffer (BUFX); or maximizing the downside buffer (BUFH). FGSI utilizes a Target Income Strategy® designed to generate consistent income while allowing participation in the growth potential of the underlying equities. Both BUFX and BUFH employ a laddered approach by holding 12 monthly series of their respective underlying ETFs, helping to mitigate timing risk and provide continuous exposure to their target outcomes.

“Today’s market demands innovation, especially for investors seeking targeted results in uncertain conditions,” said Ryan Issakainen, CFA, Senior Vice President and ETF Strategist at First Trust. “These new funds extend First Trust’s ETF lineup with solutions designed to provide consistent income, enhanced upside participation, or an increased downside buffer, delivered through the convenience of a single ETF.”

Jeff Chang, President of Vest, added, “Investors are increasingly looking for ways to manage risk or generate income without sacrificing growth potential. We’re excited to bring these strategies together to help address real-world portfolio challenges in a thoughtful, outcome-oriented way.”

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