(GDEC) First Trust Exchange Traded - Ratings and Ratios

The FT Cboe Vest U.S. Equity Moderate Buffer ETF - December (GDEC) is an exchange-traded fund that employs a strategy centered around FLexible EXchange (FLEX) Options tied to the performance of the SPDR S&P 500 ETF Trust. By utilizing FLEX Options, the fund allows for the customization of key contract terms such as exercise prices, styles, and expiration dates, providing a tailored approach to investment.

Given its non-diversified nature, GDEC focuses its investments substantially in these customized options, aiming to achieve its defined outcome objectives. The funds strategy is designed to offer a moderate buffer against potential losses, making it a potentially attractive option for investors seeking to mitigate downside risk while still participating in the upside potential of the S&P 500.

Analyzing the funds recent performance and technical indicators, we observe a current price of $33.32, with short-term and long-term moving averages (SMA20 and SMA50) indicating a generally positive trend, as the price remains above these averages. The SMA200 at $33.31 suggests that the fund is currently trading slightly above its long-term trend. The Average True Range (ATR) of 0.56, or 1.68%, indicates moderate daily volatility.

Considering the Assets Under Management (AUM) of $381.70M, GDEC has a significant presence in the ETF market, suggesting a reasonable level of liquidity and investor interest. The funds defined outcome category and moderate buffer strategy are likely to appeal to investors seeking to balance risk and potential returns.

Forecasting future performance based on the provided technical and fundamental data, a potential scenario could unfold as follows: If the S&P 500 continues to trend positively, GDECs use of FLEX Options could allow it to capture a significant portion of the upside while its buffer strategy mitigates potential downsides. Given the current price is near its SMA200 and slightly above, a continued upward trend could see the price pushing towards the 52-week high of $34.57. Conversely, a downturn could be buffered by the funds strategy, potentially limiting losses. Thus, for investors looking for a balanced exposure to the S&P 500 with a managed risk profile, GDEC could be a viable option, warranting further investigation.