FT Vest International Equity Moderate Buffer ETF - September (YSEP US) - Portfolio Construction Methodology

Core Insights - The FT Vest International Equity Moderate Buffer ETF – September aims to provide exposure to developed ex-US large- and mid-cap equities through a structured one-year buffer-and-cap strategy using FLEX options on the iShares MSCI EAFE ETF [1] Investment Strategy - The fund primarily invests in a series of exchange-listed, OCC-cleared European-style call and put FLEX options with a common September expiration, rather than directly holding the underlying equity ETF [1] - Strike selection is performed at the beginning of each outcome period to establish a preset downside buffer through purchased puts, while purchased and written calls determine the upside participation and cap for the period [1] - Residual cash and collateral are allocated to short-term USD money market instruments to ensure margin and operational liquidity, rather than to generate returns [1] - At each September outcome reset, FLEX positions are transitioned into a new one-year options package to renew the buffer, cap, and participation profile [1]