(DMAR) First Trust Exchange-Traded - Ratings and Ratios

The FT Cboe Vest U.S. Equity Deep Buffer ETF - March (DMAR) is an exchange-traded fund that employs a unique investment strategy, utilizing FLexible EXchange Options (FLEX Options) to provide a buffered exposure to the SPDR S&P 500 ETF Trust. By doing so, the fund aims to mitigate potential losses while still allowing for participation in the underlying ETFs gains, up to a certain cap. The use of FLEX Options enables the fund to customize key contract terms, such as exercise prices, styles, and expiration dates, providing a tailored investment approach.

DMAR is categorized as a Defined Outcome ETF, indicating that its investment objective is to achieve a specific outcome, in this case, buffered exposure to the S&P 500 index. The funds non-diversified nature means that it may invest a significant portion of its assets in a limited number of holdings, which can result in increased volatility. As of the latest available data, the funds assets under management (AUM) stand at $357.49 million.

From a technical analysis perspective, the funds current price is $37.84, with short-term moving averages (SMA20 and SMA50) indicating a relatively stable trend. The Average True Range (ATR) is 0.51, representing a daily volatility of 1.34%. Considering the 52-week high and low prices of $39.14 and $34.85, respectively, the fund is currently trading near the lower end of its recent range. Given the current technical setup, a potential forecast could be that DMAR may continue to consolidate around its current levels, with a potential breakout or breakdown dependent on the underlying ETFs performance and overall market conditions.

Combining technical and fundamental insights, a forecast for DMAR could be that its performance will be closely tied to the SPDR S&P 500 ETF Trust, with the buffered nature of the fund potentially limiting its upside participation. If the S&P 500 index experiences a significant rally, DMARs returns may be capped, while a decline in the index may be partially mitigated by the buffer provided by the FLEX Options. As such, investors in DMAR should be prepared for a potentially lower-return profile compared to a direct investment in the underlying ETF, in exchange for the reduced downside risk.