First Trust Lists Maximum Buffer ETF on S&P 500 in London

First Trust has expanded its defined-outcome ETF range with the listing on the London Stock Exchange of the FT Vest U.S. Equity Max Buffer UCITS ETF – March, a product designed to provide exposure to the S&P 500 with a selective protection against losses.

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Article created by the editorial staff of ETFWorld.co.uk

Rupert Haddon Managing Director at First Trust Global Portfolios

The ETF, with ISIN IE0002PPCMH6, began trading on the London market on 23 March 2026. The fund is actively managed and replicates the performance of the S&P 500 Index through the use of customised FLEX Options (Flexible Exchange Options), traded on the Cboe Options Exchange and cleared by the Options Clearing Corporation.

The fund’s structure has two objectives: to deliver returns aligned with the reference index up to a predetermined upside cap, while providing a buffer against losses over a period of approximately one year. The product allows investors to hold the position indefinitely, with a reset of parameters at the end of each outcome period.

Parameters for the 2026–2027 Period

The fund’s previous reference period concluded on 20 March 2026. A new Target Outcome Period began on 23 March 2026 and will end on 19 March 2027.

According to a prospectus supplement published by First Trust on 11 March 2026, the expected parameters for the new period include an upside cap of 7.00% before fees, which reduces to 6.15% after management expenses. The buffer against losses is expected to range between 37.20% and 100% before fees, corresponding to a net range between 36.35% and 99.15%.

Final parameters are set at the beginning of each period and depend on market conditions prevailing on that date. The definitive figures for the period beginning on 23 March 2026 will be disclosed in a prospectus supplement published on the same day.

Structure and Functioning

The ETF invests substantially all of its assets in FLEX Options referencing the price performance of the S&P 500. These derivative instruments allow for a defined return profile: up to the cap, the ETF participates in the index’s upside; in the event of a decline, the buffer absorbs losses up to the specified threshold.

If the index loss exceeds the buffer, the fund experiences additional losses on a one‑to‑one basis, before management fees and other operating costs.

The product belongs to the category of Target Outcome ETFs, also known as Defined Outcome ETFs, which allow investors to shape the risk‑return profile within predetermined parameters. First Trust’s “Max Buffer” series, launched in March 2024, is designed to provide the maximum available level of protection while maintaining a minimum cap of 7% before fees.

Costs and Market Access

The ETF has a total expense ratio (TER) of 0.85%. The cap and buffer figures are reduced by the Annual Management Fee as well as any brokerage commissions, trading fees, taxes and extraordinary expenses not included in the management fee.

The listing on the LSE extends the distribution of the product, which has been available in the United States since 2024 under the ticker MARM on Cboe BZX. The ETF is classified as non‑diversified under applicable regulations.

Investment Considerations

The ETF is structured for investors who intend to hold the position for the full annual outcome period. Purchasing shares after the start of the period results in different exposures than those stated in the prospectus, as the remaining cap and buffer depend on the index performance already realised since the start of the period.

The protection provided by the buffer applies only to losses relative to the initial value of the reference period. An investor entering at a later date may be exposed to the downside of the index on any appreciation that has already occurred.

Source: ETFWorld