FT Vest U.S. Equity Equal Weight Buffer ETF - June (RSJN US) - Portfolio Construction Methodology

Group 1 - The FT Vest U.S. Equity Equal Weight Buffer ETF – June employs an investment strategy that targets the price return of the Invesco S&P 500 Equal Weight ETF over a June-to-June outcome period using a defined-outcome options overlay [1] - The portfolio primarily consists of exchange-listed FLEX options on the equal-weighted U.S. large-cap reference, along with cash or short-term USD collateral [1] - The option ladders are structured as put-spread buffers, covering approximately the first 10% of losses before fees and expenses, and are paired with call-spread caps to manage upside potential [1] Group 2 - Option strikes are fixed at the inception of the period and rolled at reset, with investors transacting mid-period obtaining the then-prevailing cap/buffer [1] - The fund is characterized as non-diversified and U.S.-focused, with risk management achieved through disciplined contract selection and outcome-period resets rather than tactical equity trading [1] - Construction of the portfolio typically concentrates exposure in a limited number of OCC-cleared contracts, with management driven by FLEX market depth and spreads [1]