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

The First Trust Exchange-Traded Fund VIII - FT Cboe Vest U.S. Equity Moderate Buffer ETF - January (BATS:GJAN) is an exchange-traded fund that invests substantially all of its assets in FLexible EXchange Options referencing the SPDR S&P500 ETF Trust, which tracks the S&P500 Index using a replication strategy. This indicates that GJANs performance is closely tied to the S&P 500 Index, providing broad exposure to the US stock market.

As a Defined Outcome ETF, GJAN is designed to provide a level of protection or buffer against losses, in this case, moderate buffer, suggesting it aims to mitigate some downside risk while still allowing for upside potential. The fund is non-diversified, meaning it may invest a larger percentage of its assets in a smaller number of holdings, potentially increasing its exposure to the performance of the S&P 500 Index.

Key performance indicators (KPIs) to monitor for GJAN include its tracking error relative to the S&P 500 Index, the effectiveness of its buffer strategy during market downturns, and its expense ratio relative to peers. Given its AUM of $376.46M, GJAN has a reasonable size to provide liquidity, but its non-diversified nature and reliance on derivatives (FLexible EXchange Options) may introduce unique risks that investors should be aware of.

To further evaluate GJAN, investors may also consider its trading volume, bid-ask spread, and premium/discount to NAV, as these factors can impact the cost and efficiency of investing in the fund. Additionally, comparing GJANs historical performance to that of its benchmark and peers can provide insight into its ability to achieve its investment objectives.