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FT Cboe Vest US Equity Deep Bffr ETF Feb DFEB Sustainability

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Sustainability Analysis

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Sustainability Summary


FT Cboe Vest US Equity Deep Bffr ETF Feb may not appeal to sustainability-conscious investors.

FT Cboe Vest US Equity Deep Bffr ETF Feb's holdings are exposed to average levels of ESG risk relative to those of its peers in the Options Trading category, thus earning it an average Morningstar Sustainability Rating of 3 globes. Competing funds in the category with ratings of 4 or 5 globes have less ESG risk in their holdings. ESG risk provides investors with a signal that reflects to what degree their investments are exposed to risks related to material ESG issues, such as climate change and inequalities, that are not sufficiently managed. ESG risk differs from impact, which is about seeking positive environmental and social outcomes.

FT Cboe Vest US Equity Deep Bffr ETF Feb has a Carbon Risk Score of 7.78, indicating portfolio companies face low carbon-related risks in the transition to a low-carbon economy.

One potential issue for a sustainability-focused investor is that FT Cboe Vest US Equity Deep Bffr ETF Feb doesn’t have an ESG-focused mandate. Funds with an ESG-focused mandate would have a higher probability to drive positive ESG outcomes. The fund exhibits relatively high exposure (9.57%) to companies with high or severe controversies. Companies with high or severe controversies may be involved in incidents such as corruption, employee abuses, environmental incidents, and corporate scandals that pose serious business risks to the company.

Currently, 7.60% of the fund's assets are involved in fossil fuels. This percentage is on par with the average peer in its category. Companies are considered involved in fossil fuels if they derive some revenue from thermal coal, oil, and gas.

ESG Commitment Level Asset Manager