Deep Buffer ETF (DMAR) Hits Fresh 52-Week High
For investors seeking momentum, FT Vest U.S. Equity Deep Buffer ETF - March DMAR is probably on the radar now. The fund just hit a 52-week high and is up 20.7% from its 52-week low price of $35.07 per share.
But are there more gains in store for this ETF? Let’s take a quick look at the fund and its near-term outlook to get a better sense of where it might head.
DMAR in Focus
It seeks to provide investors with returns (before fees and expenses) that match the price return of the SPDR S&P 500 ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 12.72% while providing a buffer (before fees and expenses) against Underlying ETF losses between -5% and -30% over the period from March 24, 2025 to March 20, 2026. The product charges 85 basis points (bps) in annual fees (See: All Defined Outcome ETFs here).
What Led to the Rise?
The surge of the DMAR ETF to a 52-week high is likely driven by its "defined outcome" structure during extreme market volatility. As Wall Street grapples with surging oil prices and a hawkish Fed, DMAR’s use of FLEX Options provides a strong downside buffer. As investors are fleeing high-beta stocks, this defensive "flight to safety" premium might have led to this fund’s recent price appreciation, which caused it to touch the 52-week high.
More Gains Ahead?
DMAR may continue its strong performance in the near term, with a positive weighted alpha of 11.61 (as per Barchart.com), which suggests a further rally.
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This article originally published on Zacks Investment Research (zacks.com).
Source Zacks-com
