FNOV.B Faces Redemption Pressure Despite Buffered Design

ETF Overview and Capital Flows

The FT Vest U.S. Equity Buffer ETF - November (FNOV.B) is an actively managed equity ETF designed to target buffered losses and capped gains relative to the SPDR S&P 500 ETF Trust (SPY) over a defined holding period. It achieves this by holding options and collateral, positioning itself as a structured product within the active equity ETF space. Recent capital flows for the period ending 20260123 show net outflows across all order types, with total net outflows of $98,868.62 from retail orders and larger outflows from block and extra-large orders. These figures highlight immediate redemption pressure but do not yet signal a broader trend.

Peer ETF Snapshot

• AGG.P carries a 0.03% expense ratio, holds $137B in assets, and applies a leverage ratio of 1.0.
• AGGS.P charges 0.35%, holds $38M, and matches the same 1.0 leverage ratio.
• AVIG.P, with a 0.15% expense ratio and $2B in assets, also operates under a 1.0 leverage structure.
• AUM across peers ranges from $28M (ACVT.P) to $137B (AGG.P), while expense ratios span 0.03% to 0.65%.

Opportunities and Structural Constraints

FNOV.B’s structure offers a niche approach to S&P 500 exposure with predefined risk boundaries, appealing to investors seeking downside protection in volatile markets. However, its 0.85% expense ratio—well above the 0.03% of AGG.P—could deter cost-sensitive allocators. The recent outflows, while modest in absolute terms, underscore liquidity risks for an actively managed fund relying on options strategies. At the end of the day, the ETF’s viability hinges on its ability to deliver on its buffer/cap promise while managing redemptions and structural costs.