(BUFZ) FT Cboe Vest Laddered - Ratings and Ratios

The FT Cboe Vest Laddered Moderate Buffer ETF (BATS:BUFZ) is designed to offer investors exposure to the U.S. large-cap equity market while mitigating downside risk through a diversified portfolio of twelve underlying FT Vest U.S. Equity Moderate Buffer ETFs, with staggered expiration dates. This laddered approach allows for a rolling investment strategy, potentially reducing the impact of market volatility.

The funds non-diversified status indicates that it may invest a larger proportion of its assets in a smaller number of holdings, which can increase its risk profile. However, its investment objective is centered around managing downside risk, suggesting a cautious approach to large-cap equity investment.

From a technical standpoint, BUFZ is currently trading at $24.88, above its 20-day, 50-day, and 200-day simple moving averages (SMA20: $24.51, SMA50: $23.98, SMA200: $23.83), indicating a positive short-term trend. The Average True Range (ATR) of 0.15 represents a 0.61% daily price fluctuation, suggesting relatively low volatility. Given its proximity to the 52-week high of $24.88 and distance from the 52-week low of $21.98, the ETF is near its peak value over the past year.

With Assets Under Management (AUM) of $492.09 million, BUFZ has a substantial presence in the Defined Outcome ETF category. The funds size and structure suggest it is a viable option for investors seeking to balance exposure to U.S. large-cap equities with a managed risk approach.

Forecasting future performance, we can anticipate that BUFZ will continue to track the U.S. large-cap equity market, potentially with a more stable performance due to its buffer strategy. If the market continues to trend upwards, BUFZ is likely to follow, potentially reaching new 52-week highs. However, its buffer mechanism is designed to limit losses during downturns, which could result in more muted declines compared to the broader market. Given the current technical indicators and fundamental data, a reasonable short-term target could be a price slightly above its current SMA20, around $25.00, assuming the upward trend continues and volatility remains low.