First Trust Expands Its Target Outcome Laddered Fund Suite with Three New Strategies

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

• FT Vest Laddered U.S. Equity Uncapped Accelerator ETF (Cboe: BFXU) seeks capital appreciation by investing in a laddered portfolio of FT Vest U.S. Equity Uncapped Accelerator ETFs (“underlying ETFs”) which invest in FLEX Options to provide investors with returns that are based on the price returns of the State Street^® SPDR^® S&P 500^® ETF Trust (SPY). Each underlying ETF seeks to provide the potential for rates of return (before fees and expenses) that outperform the positive price return of SPY if SPY experiences at least 2.0% of positive returns over a defined one-year period (“Target Outcome Period”). The fund is designed to provide investors with the ability to participate in the potential accelerated returns that the underlying ETFs may provide. However, because the fund’s laddered approach means it may acquire and dispose of underlying ETF shares at various points within their Target Outcome Periods rather than holding them through the entire period, the fund may not realize the full Upside Rate of Return that would only be achieved if the Target Upside Deductible is exceeded at the end of a Target Outcome Period.
• FT Vest Laddered U.S. Equity Equal Weight Buffer ETF (Cboe: BFEW) provides exposure to a laddered portfolio of FT Vest U.S. Equity Equal Weight Buffer ETFs (“underlying ETFs”). The underlying ETFs seek to provide investors with returns (before fees and expenses) that match the price return of the Invesco S&P 500^® Equal Weight ETF (“RSP”), up to a predetermined upside cap, while providing a buffer (before fees and expenses) against the first 10% of RSP losses, over a defined one-year period (“Target Outcome Period”).
• FT Vest Laddered Emerging Markets Buffer ETF (Cboe: BUFE) provides exposure to a laddered portfolio of FT Vest Emerging Markets Buffer ETFs (“underlying ETFs”). The underlying ETFs seek to provide investors with returns (before fees and expenses) that match the price return of the iShares^® MSCI Emerging Markets^® ETF (“EEM”), up to a predetermined upside cap, while providing a buffer (before fees and expenses) against the first 10% of EEM losses, over a defined one-year period (“Target Outcome Period”).

Collectively referred to as “the funds,” BFXU, BFEW, and BUFE are the latest additions to First Trust’s Target Outcome ETF^® lineup, which now includes 132 funds with over $36 billion in total net assets as of March 31, 2026, an increase of 29% year over year. The funds are sub-advised by Vest Financial LLC (“Vest”), the creator of Target Outcome Investments^® and Target Income Strategies^®.

The funds aim to help investors navigate market uncertainty by combining the benefits of laddered outcome periods with defined upside and downside characteristics. By staggering entry points across multiple outcome periods, the funds aim to reduce timing risk and provide a more consistent investment experience over time.

“BFXU, BFEW, and BUFE help investors manage timing risk through a single-ticker solution with exposure to multiple Target Outcome Periods. These funds give financial professionals greater flexibility to match client objectives across different strategies and market exposures,” said Ryan Issakainen, CFA, Senior Vice President and ETF Strategist at First Trust.

Jeff Chang, President of Vest, added, “BFXU, BFEW, and BUFE add meaningful optionality to our Target Outcome ETF^® lineup, giving financial professionals more model-ready tools to help them build outcome-focused portfolios tailored to their clients' risk preferences.”

Important Considerations

To understand the funds' strategies and risks, it is important to understand the strategies and risks of the underlying ETFs. The funds do not directly provide the stated outcomes of the underlying ETFs; rather, they seek to provide diversified exposure to all the underlying ETFs in a single investment. BFXU does not itself provide any Net Upside Rate of Return or Target Upside Deductible. BFEW and BUFE do not provide any buffer against losses or caps. For BFXU, the Net Upside Rate of Return and Target Upside Deductible are determined at the inception date of each Target Outcome Period and are only provided by the underlying ETFs. For BFEW and BUFE, the upside caps and 10% downside buffers are determined at the inception date of each Target Outcome Period and are only provided by the underlying ETFs. The stated outcomes may only be realized if shares of the underlying ETFs are held for the entire Target Outcome Period. Each fund indirectly bears the expenses of the underlying ETFs. The funds will likely not receive the full benefit of the underlying ETF buffers and could have limited upside potential. The funds’ returns may be limited by the caps of the underlying ETFs.

Karan Sood and Trevor Lack, of Vest, will serve as portfolio managers for the fund. The portfolio managers are jointly and primarily responsible for the day-to-day management of the fund.

For more information about First Trust, please contact Ryan Issakainen at [phone] or [e-mail].

About First Trust

First Trust is a federally registered investment advisor and serves as the funds’ investment advisor. First Trust and its affiliate First Trust Portfolios L.P. (“FTP”), a FINRA registered broker-dealer, are privately held companies that provide a variety of investment services. First Trust has collective assets under management or supervision of approximately $329 billion as of February 27, 2026, through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts. First Trust is the supervisor of the First Trust unit investment trusts, while FTP is the sponsor. FTP is also a distributor of mutual fund shares and exchange-traded fund creation units. First Trust and FTP are based in Wheaton, Illinois. For more information, visit https://www.ftportfolios.com/

About Vest:

Vest delivers the benefits of derivatives seeking precise, outcome-driven solutions—removing some uncertainty while bringing clarity to portfolios. Vest’s Target Outcome Investments^® simplify derivative strategies into trusted, outcome-focused products, accessible through a broad range of investment solutions. As the leader in Target Buffer ETFs^® and creators of over 300 innovative products, Vest manages $61B+ in AUM/AUS as of March 31, 2026, with an excellent track record of target delivery. Combining technical experience, practical execution, and trusted partnerships, Vest is committed to making derivatives work for everyone. For more information about Vest, visit www.vestfin.com or contact Daniella Jones at [e-mail] or [phone].

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You should consider the fund’s investment objectives, risks, and charges and expenses carefully before investing. Contact First Trust Portfolios L.P. at 1-800-621-1675 or visit www.ftportfolios.com to obtain a prospectus or summary prospectus which contains this and other information about the fund. The prospectus or summary prospectus should be read carefully before investing.

Risk Considerations

You could lose money by investing in a fund. An investment in a fund is not a deposit of a bank and is not insured or guaranteed. There can be no assurance that a fund's objective(s) will be achieved. Investors buying or selling shares on the secondary market may incur customary brokerage commissions. Please refer to each fund's prospectus and Statement of Additional Information for additional details on a fund's risks. The order of the below risk factors does not indicate the significance of any particular risk factor.

There can be no assurance that an active trading market for fund shares will develop or be maintained.

There can be no guarantee that the fund will be successful in its strategy to provide the Upside Rate of Return. The Upside Rate of Return will only be realized if the Underlying ETF increases in value above the Target Upside Deductible at the end of the Target Outcome Period. If the Underlying ETF increases above the Target Upside Deductible during the Target Outcome Period but fails to remain above the Target Upside Deductible at the end of the Target Outcome Period, the fund will not experience any positive returns. Because any positive returns will not commence until the Target Upside Deductible is achieved, the Upside Rate of Return that an investor may receive above the Target Upside Deductible may be less than an investment in a fund that does not have a Target Upside Deductible or Upside Rate of Return. In the event an investor purchases shares after the first day of the Target Outcome Period or sells shares prior to the end of the Target Outcome Period, the rate of return that the fund seeks to provide will likely not be available.

Some Asian economies are highly dependent on trade with other countries and there is a high concentration of market capitalization and trading volume in a small number of Asian issuers as well as a high concentration of investors and financial intermediaries. Certain Asian countries experience expropriation and nationalization of assets, confiscatory taxation, currency manipulation, political instability, armed conflict and social instability as a result of religious, ethnic, socio-economic and/or political unrest. In particular, escalated tensions involving North Korea could have severe adverse effect on Asian economies. Recent developments between the U.S. and China have heightened concerns of increased tariffs and restrictions on trade.

A fund that invests in underlying ETFs that use FLEX Options to employ a "target outcome strategy" ("Underlying ETFs"), does not itself pursue a defined outcome strategy. The buffer is only provided by the Underlying ETFs and the fund itself does not provide any stated buffer against losses. There can be no guarantee that the Underlying ETFs will be successful in their strategy to buffer against losses. A fund may lose its entire investment in an Underlying ETF. To the extent a fund acquires shares of its Underlying ETFs in connection with creations and during reallocation, the fund typically will not acquire Underlying ETF shares on the first day of the target outcome period defined in the Underlying Fund's prospectus ("Target Outcome Period"). Likewise, to the extend a fund disposes of shares of an Underlying ETF in connection with redemptions and during reallocation, any such disposition typically will not incur on the last day of a Target Outcome Period.

A new Underlying ETF cap is established at the beginning of each Target Outcome Period and is dependent on prevailing market conditions. As a result, a cap may rise or fall from one Target Outcome Period to the next and is unlikely to remain the same for consecutive Target Outcome Periods.

If the Underlying ETF's reference security or index experiences gains during a Target Outcome Period, an Underlying ETF will not participate in those gains beyond the cap. In the event a fund purchases shares of an Underlying ETF after the first day of a Target Outcome Period and the Underlying ETF has risen in value to a level near the cap, there may be little or no ability for the fund to experience an investment gain on its shares; however, the fund will remain vulnerable to downside risk.

The Chinese central government has historically exercised substantial control over virtually every sector of the Chinese economy through administrative regulation and/or state ownership. Actions of the Chinese central and local government authorities continue to have a substantial effect on economic conditions in China. Export growth continues to be a major driver of China's rapid economic growth. Institution of tariffs or other trade barriers, or a downturn in any of the economies of China's key trading partners may have an adverse impact on the Chinese economy.

A fund may invest a significant percentage of its assets in a small number of ETFs. As a result, declines in the value or performance of one or more ETFs could have a significant negative impact on a fund's net asset value and your investment. A fund's performance will be largely dependent on the performance of these ETFs. In addition, if a fund holds a significant percentage of an ETF's outstanding shares, its purchases and sales may affect the ETF's size, market price, liquidity, bid/ask spreads, portfolio turnover, transaction costs, tax efficiency and ability to trade underlying securities advantageously. These risks may be greater for newer ETFs.

The fund may invest in ETPs that are advised by or affiliated with the Advisor providing a financial incentive for the fund to invest in ETPs for which it also serves as investment advisor. The Advisor may invest in an affiliated ETP even in circumstances where an unaffiliated ETP may have lower fees or better performance over certain time periods.

A fund may be subject to the risk that a counterparty will not fulfill its obligations which may result in significant financial loss to a fund.

An Underlying ETF may be subject to the risk that a counterparty will not fulfill its obligations which may result in significant financial loss to a fund.

Current market conditions risk is the risk that a particular investment, or shares of the fund in general, may fall in value due to current market conditions. For example, changes in governmental fiscal and regulatory policies, disruptions to banking and real estate markets, actual and threatened international armed conflicts and hostilities, and public health crises, among other significant events, could have a material impact on the value of the fund's investments.

A fund is susceptible to operational risks through breaches in cyber security. Such events could cause a fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss.

Because the Underlying ETFs hold FLEX Options referencing EEM, they are exposed to equity market risk. Stock prices may fluctuate due to market volatility, economic or political events, or changes in investor sentiment. Rising interest rates can increase borrowing costs and pressure valuations. Equity markets may decline sharply over short or extended periods, affecting specific companies, sectors, countries, or the broader market.

The Underlying ETFs invest in FLEX Options referencing EEM and are subject to risks associated with ETFs and EEM's underlying holdings. EEM's value fluctuates with market conditions, growth expectations, interest rates, and supply and demand. ETFs may trade at premiums or discounts, face limited liquidity, and incur expenses that reduce returns. Index-tracking ETFs may not fully replicate index performance due to costs and portfolio differences.

Financial services companies are subject to the adverse effects of economic recession, currency exchange rates, government regulation, decreases in the availability of capital, volatile interest rates, portfolio concentration in geographic markets, industries or products, and competition from new entrants in their fields of business.

The Underlying ETFs invest in FLEX Options. Trading FLEX Options involves risks different from, or possibly greater than, the risks associated with investing directly in securities. An Underlying Fund may experience substantial downside from specific FLEX Option positions and certain FLEX Option positions may expire worthless. There can be no guarantee that a liquid secondary trading market will exist for the FLEX Options and FLEX options may be less liquid than exchange-traded options.

FLEX Options are subject to correlation risk and a FLEX Option's value may be highly volatile, and may fluctuate substantially during a short period of time. FLEX Options will be exercisable at the strike price only on their expiration date. Prior to the expiration date, the value of the FLEX Options will be determined based upon market quotations or other recognized pricing methods. In the absence of readily available market quotations for fund holdings, a fund's advisor may determine the fair value of the holding, which requires the advisor's judgement and is subject to the risk of mispricing or improper valuation.

A fund may be a constituent of one or more indices or models which could greatly affect a fund's trading activity, size and volatility.

Information technology companies are subject to certain risks, including rapidly changing technologies, short product life cycles, fierce competition, aggressive pricing and reduced profit margins, loss of patent, copyright and trademark protections, cyclical market patterns, evolving industry standards and regulation and frequent new product introductions.

Large capitalization companies may grow at a slower rate than the overall market.

The portfolio managers of an actively managed portfolio will apply investment techniques and risk analyses that may not have the desired result.

Market risk is the risk that a particular security, or shares of a fund in general may fall in value. Securities are subject to market fluctuations caused by such factors as general economic conditions, political events, regulatory or market developments, changes in interest rates and perceived trends in securities prices. Shares of a fund could decline in value or underperform other investments as a result. In addition, local, regional or global events such as war, acts of terrorism, spread of infectious disease or other public health issues, recessions, natural disasters or other events could have significant negative impact on a fund.

When a fund sells Underlying ETFs in the open market, the resulting gain or loss may have a negative impact on fund returns. In addition, a fund may effect a portion of its creations and redemptions for cash rather than in-kind, which may be less tax efficient. In addition, cash transactions may involve higher brokerage fees and taxes than in-kind transactions.

Mid capitalization companies may experience greater price volatility than larger, more established companies.

Large inflows and outflows may impact a new fund's market exposure for limited periods of time.

A fund classified as "non-diversified" may invest a relatively high percentage of its assets in a limited number of issuers. As a result, a fund may be more susceptible to a single adverse economic or regulatory occurrence affecting one or more of these issuers, experience increased volatility and be highly concentrated in certain issuers.

A fund and a fund's advisor may seek to reduce various operational risks through controls and procedures, but it is not possible to completely protect against such risks. The fund also relies on third parties for a range of services, including custody, and any delay or failure related to those services may affect the fund's ability to meet its objective.

The prices of options are volatile and the effective use of options depends on a fund's ability to terminate option positions at times deemed desirable to do so. There is no assurance that a fund will be able to effect closing transactions at any particular time or at an acceptable price.

The prices of options are volatile and the effective use of options depends on a fund's ability to terminate option positions at times deemed desirable to do so. There is no assurance that an Underlying ETF will be able to effect closing transactions at any particular time or at an acceptable price.

High portfolio turnover may result in higher levels of transaction costs and may generate greater tax liabilities for shareholders.

The market price of a fund's shares will generally fluctuate in accordance with changes in the fund's net asset value ("NAV") as well as the relative supply of and demand for shares on the exchange, and a fund's investment advisor cannot predict whether shares will trade below, at or above their NAV.

Because the Underlying ETFs hold FLEX Options referencing RSP, they are exposed to equity market risk. Stock prices may fluctuate due to market volatility, economic or political events, or changes in investor sentiment. Rising interest rates can increase borrowing costs and pressure valuations. Equity markets may decline sharply over short or extended periods, affecting specific companies, sectors, or the broader market.

The Underlying ETFs invest in FLEX Options referencing RSP and are subject to risks associated with ETFs and RSP's underlying holdings. RSP's value fluctuates with market conditions, growth expectations, interest rates, and supply and demand. ETFs may trade at premiums or discounts, face limited liquidity, and incur expenses that reduce returns. Index-tracking ETFs may not fully replicate index performance due to costs and portfolio differences.

A fund may have temporary larger exposures to certain Underlying ETFs and under such circumstances, a fund's return would be more greatly influenced by the returns of the Underlying ETFs with the larger exposures.

If a fund's Underlying ETF holds FLEX Options that reference SPY, the fund is subject to certain of the risks of owning shares of an ETF as well as the risks of the types of instruments in which SPY invests.

If a fund's Underlying ETF holds FLEX Options that reference SPY, each Underlying ETF has exposure to the equity securities markets. Equity securities may decline significantly in price over short or extended periods of time, and such declines may occur in the equity market as a whole, or they may occur in only a particular country, company, industry or sector of the market.

An Underlying ETF's investment strategy is designed to deliver returns if shares are bought on the first day that the Underlying ETF enters into the FLEX Options and are held until the FLEX options expire at the end of the Target Outcome Period subject to the cap.

If a fund does not qualify as a RIC for any taxable year and certain relief provisions were not available, a fund's taxable income would be subject to tax at the fund level and to a further tax at the shareholder level when such income is distributed. Further, there may be other tax implications to a fund based on the type of investments in a fund.

Trading on an exchange may be halted due to market conditions or other reasons. There can be no assurance that a fund's requirements to maintain the exchange listing will continue to be met or be unchanged.

A fund that invests in FLEX Options that reference an ETF is subject to certain of the risks of owning shares of an ETF as well as the risks of the types of instruments in which the reference ETF invests.

The fund's investment in shares of the Underlying ETFs subjects it to the risks of owning the securities held by the Underlying ETF, as well as the same structural risks faced by an investor purchasing shares of the fund.

An underlying ETF with investments that are concentrated in a single asset class, country, region, industry, or sector may be more affected by adverse events than the market as a whole.

A fund that invests in Underlying ETFs may provide returns that are lower than the returns that an investor could achieve by investing in one or more Underlying ETFs alone and the fund bears its proportionate share of each ETF's expenses, subjecting fund shareholders to duplicative expenses. A fund of Underlying ETFs does not itself pursue a defined outcome strategy and does not provide any buffer against Underlying ETF losses.

A new Upside Rate of Return is established at the beginning of each Target Outcome Period and is dependent on prevailing market conditions. As a result, the Upside Rate of Return may rise or fall from one Target Outcome Period to the next and is unlikely to remain the same for consecutive Target Outcome Periods.

In China, direct ownership of companies in certain sectors by foreign individuals and entities is prohibited. In order to allow for foreign investment in these businesses, many Chinese companies have created variable interest entities ("VIEs") structures to enable indirect foreign ownership. VIEs are not formally recognized under Chinese law. Intervention by the Chinese government with respect to VIEs could significantly affect the Chinese company's performance and the enforceability of the VIE's contractual arrangements that establish the links between the Chinese company and the shell company in which the Fund invests. VIEs are also subject to the investment risks associated with the underlying Chinese issuer or operating company. Chinese companies are not subject to the same degree of regulatory requirements or accounting standards and oversight as companies in more developed countries. As a result, information about the Chinese securities and VIEs in which the Fund invests may be less reliable and incomplete.

First Trust Advisors L.P. (FTA) is the adviser to the First Trust fund(s). FTA is an affiliate of First Trust Portfolios L.P., the distributor of the fund(s).

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.

The Target Outcome registered trademarks are registered trademarks of Vest Financial LLC.

The funds and the underlying ETFs are not issued, sponsored, endorsed, sold or promoted by State Street^® SPDR^® S&P 500^® ETF Trust, PDR, or Standard & Poor's^® (together with their affiliates hereinafter referred to as the "Corporations"). The Corporations have not passed on the legality or suitability of, or the accuracy or adequacy of, descriptions and disclosures relating to the funds or the underlying ETFs or the FLEX Options. The Corporations make no representations or warranties, express or implied, regarding the advisability of investing in the funds or the underlying ETFs or the FLEX Options or results to be obtained by the funds or the underlying ETFs or the FLEX Options, shareholders or any other person or entity from use of the State Street^® SPDR^® S&P 500^® ETF Trust. The Corporations have no liability in connection with the management, administration, marketing or trading of the funds or the underlying ETFs or the FLEX Options.

The funds and the underlying ETFs are not sponsored, endorsed, sold or promoted by iShares MSCI Emerging Markets ETF, BFA, MSCI Inc. or their affiliates. iShares MSCI Emerging Markets ETF, BFA, MSCI Inc. or their affiliates have not passed on the legality or suitability of, or the accuracy or adequacy of, descriptions and disclosures relating to the funds or the underlying ETFs or the FLEX Options. iShares MSCI Emerging Markets ETF, BFA, MSCI Inc. or their affiliates make no representations or warranties, express or implied, regarding the advisability of investing in the funds or the underlying ETFs or the FLEX Options or results to be obtained by the funds or the underlying ETFs or the FLEX Options, shareholders or any other person or entity from use of the iShares MSCI Emerging Markets ETF. The Corporations have no liability in connection with the management, administration, marketing or trading of the funds or the underlying ETFs or the FLEX Options.

The funds and the underlying ETFs are not sponsored, endorsed, sold or promoted by Invesco S&P 500^® Equal Weight ETF, Invesco, Standard & Poor's^® or their affiliates. Invesco S&P 500^® Equal Weight ETF, Invesco, Standard & Poor's^® or their affiliates have not passed on the legality or suitability of, or the accuracy or adequacy of, descriptions and disclosures relating to the funds or the underlying ETFs or the FLEX Options. Invesco S&P 500^® Equal Weight ETF, Invesco, Standard & Poor's^® or their affiliates make no representations or warranties, express or implied, regarding the advisability of investing in the funds or the underlying ETFs or the FLEX Options or results to be obtained by the funds or the underlying ETFs or the FLEX Options, shareholders or any other person or entity from use of the Invesco S&P 500^® Equal Weight ETF. Invesco S&P 500^® Equal Weight ETF, Invesco, Standard & Poor's^® or their affiliates have no liability in connection with the management, administration, marketing or trading of the funds or the underlying ETFs or the FLEX Options.

Definitions:

Upside Rate of Return after Deductible - The predetermined upside participation rate for the Underlying ETF for every 1% price return of the Reference Asset after the Upside Deductible End over the Outcome Period.

Starting Reference Asset Value - The value of the Reference Asset at the start of the Target Outcome Period.

Deductible Reference Asset End Value - The minimum value the reference asset must reach for the Underlying ETF to participate in positive returns, representing the 2.00% Target Upside Deductible threshold.

Upside Deductible - Minimum price return the reference asset must achieve for the Fund to participate in positive returns.

SPY – State Street^® SPDR^® S&P 500^® ETF is an exchange-traded fund based on the S&P 500 Index, which is an unmanaged index of 500 companies used to measure large-cap U.S. stock market performance.

EEM - iShares MSCI Emerging Markets ETF is an exchange-traded fund based on the MSCI Emerging Markets Index that seeks to track the investment results of an index composed of large- and mid-capitalization emerging market equities.

RSP – Invesco S&P 500^® Equal Weight ETF is an exchange-traded fund based on the S&P 500^® Equal Weight Index. The index equally weights the stocks in the S&P 500^® Index.

Source: First Trust Advisors L.P.