First Trust has launched the FT Vest Laddered Autocallable Buffer & Resilient Income ETF (NYSE Arca: ACYB), seeking income and reduced equity downside risk.
The actively managed fund uses swaps and/or option contracts to reflect a staggered portfolio of synthetic autocallables, contracts that can end early under specified conditions. Outcomes depend on the worst-performing underlying asset linked to the S&P 500, Nasdaq-100 or Russell 2000. Contract coupons are fixed and paid on scheduled observation dates regardless of index performance. ACYB intends to distribute income monthly. Contracts typically buffer the first 10%–15% of losses at maturity; the fund itself provides no stated buffer. Quarterly observations trigger an automatic call when the worst-performing index is at or above its initial value. Called or matured contracts are replaced at prevailing terms. Vest Financial is the sub-advisor.