FT Vest U.S. Equity Enhance & Moderate Buffer ETF – August (XAUG US) – Portfolio Construction Methodology

The investment strategy guiding the actively managed FT Vest U.S. Equity Enhance & Moderate Buffer ETF – August seeks to deliver a targeted pattern of U.S. large-cap equity returns by holding a ladder of FLEX Options referencing SPDR S&P 500 ETF Trust rather than owning the underlying stocks directly. The fund invests substantially all assets in exchange-traded, OCC-guaranteed FLEX call and put options, structured to provide approximately twice any positive price return of the Underlying ETF up to a pre-set cap, while delivering a defined moderate downside buffer over each one-year Target Outcome Period. FLEX options within a period share a common expiration and coordinated strike structure, so portfolio turnover is concentrated in the annual reset when a new option package is established. Day-to-day risk management focuses on monitoring option valuations, liquidity and outcome path relative to the Target Outcome profile rather than tactical reallocation.

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