TORONTO, May 15, 2026 – FT Portfolios Canada Co. (First Trust Canada) has unveiled the key parameters for the upcoming Target Outcome Period of its First Trust Vest U.S. Equity Buffer ETF – May (ticker: MAYB.F). The announcement details the upside cap and downside buffer that will govern the fund’s performance over the next cycle.
New Target Outcome Period Parameters Revealed
For the period commencing May 19, 2026, and concluding on May 21, 2027, the First Trust Vest U.S. Equity Buffer ETF – May will operate with a gross upside cap of 17.23%. This means that investor returns, before fees, expenses, and taxes, will be capped at this level, regardless of the underlying index’s performance. Simultaneously, the fund will offer a 10% buffer against potential losses in the underlying U.S. equity market.
The fund’s previous Target Outcome Period concluded on May 15, 2026. First Trust Canada noted that the upside cap for the new period has been reset to reflect prevailing market conditions, a standard practice for outcome-based investment strategies.
Fund Objective and Strategy
The First Trust Vest U.S. Equity Buffer ETF – May is designed to provide investors with returns that track the price performance of the State Street® SPDR® S&P 500® ETF Trust (SPY), up to the predetermined upside cap. Crucially, it also aims to offer a protective buffer against a portion of SPY’s potential losses.
This investment strategy is managed and sub-advised by Vest Financial LLC (Vest), employing what is termed a ‘target outcome strategy.’ This approach pre-determines specific investment outcomes for investors.
First Trust Canada highlighted that investors purchasing hedged units after the commencement of a Target Outcome Period may experience different return potential compared to those who invested at the start of the period. Furthermore, the intended buffer may not be fully available to late entrants.
Rationale Behind the Buffer Strategy
First Trust Canada emphasizes the value of a buffer in mitigating downside risk, particularly during periods of market volatility. The firm believes that this feature can assist investors in remaining invested through turbulent times.
The fund is presented as a mechanism for investors to access outcome-based investing. It seeks to provide a defined level of downside protection while allowing for capital appreciation up to a specified limit. A key feature of this structure is the elimination of bank credit risk, offering investors a more streamlined and flexible investment vehicle.
Portfolio Management
The fund’s portfolio management is jointly led by Karan Sood and Trevor Lack of Vest. They hold primary responsibility for making the investment management decisions for the First Trust Vest U.S. Equity Buffer ETF – May.
About First Trust Canada
FT Portfolios Canada Co. serves as the trustee, manager, and promoter of the fund. First Trust Canada and its affiliated entities, including First Trust Advisors L.P. (FTA), the fund’s portfolio advisor, and First Trust Portfolios L.P., a FINRA-registered broker-dealer, are privately held companies offering a range of investment services. FTA, an Ontario Securities Commission registered portfolio manager and U.S. Securities and Exchange Commission registered investment advisor, oversees approximately U.S.$319 billion in assets under management or supervision as of March 31, 2026, across various investment structures including unit investment trusts, exchange-traded funds, closed-end funds, mutual funds, and separate managed accounts. Further information is available at www.firsttrust.ca.
About Vest
Vest is recognized as the creator of Target Outcome Investments®, a suite of products designed to buffer losses, amplify gains, or generate consistent income for a diverse investor base. Vest’s Target Outcome Strategies™ are currently accessible through mutual funds, ETFs, unit investment trusts, collective investment trusts, and customized managed accounts or sub-advisory services. For more details on Vest and the development of Target Outcome Investments, interested parties can visit www.vestfin.com or contact Linda Werner at [email protected] or 703-864-5483.
For additional information regarding the First Trust Vest U.S. Equity Buffer ETF – May, media can contact Nilesh Patel at FT Portfolios Canada Co., 40 King Street West, Suite 5102, via email at [email protected], or by phone at 1-877-622-5552.
