(QDEC) Exchange - Traded Fund VIII - Overview

The FT Cboe Vest Growth-100 Buffer ETF (BATS: QDEC) is a Defined-Outcome ETF that, under normal market conditions, allocates virtually all of its capital to Flexible Exchange® (FLEX) options whose payoff is tied to the Invesco QQQ Trust (SPY QQQ), the Nasdaq-100 tracking fund. FLEX options are exchange-traded contracts that allow the issuer to customize strike prices, expiration dates, and exercise styles, giving the ETF a built-in buffer against downside moves while capping upside participation.

Key identifiers: ticker QDEC, U.S.-registered, non-diversified, and classified in the “Defined Outcome” category. As of the latest filing, the fund’s expense ratio sits around 0.65% and it manages roughly $120 million in assets. The underlying QQQ has a 30-day implied volatility near 18%, and the buffer typically protects against the first 10% of loss over a 12-month horizon, with upside participation limited to approximately 100% of QQQ’s gain beyond that buffer.

Because the ETF’s performance mirrors the Nasdaq-100, its risk-return profile is heavily influenced by macro-level tech drivers: Federal Reserve interest-rate policy, corporate earnings cycles in the semiconductor and cloud-computing sectors, and global semiconductor supply constraints. A sustained rise in real rates could pressure high-growth tech valuations, while continued demand for AI-related hardware and software could support QQQ’s upside.

For a deeper dive into how QDEC’s buffer structure compares to alternative defined-outcome products, you might explore the analytics on ValueRay.