Toronto-based First Trust Canada (FT Canada) launched hedged units of First Trust Cboe Vest U.S. Equity Buffer ETF – November on the Toronto Stock Exchange on Tuesday.

The fund, subadvised by Virginia-based Cboe Vest Financial LLC, aims to provide returns that match the SPDR S&P 500 ETF Trust while buffering against potential losses, according to a release.

The ETF uses option contracts to shield investors from the first 10% of losses (before fees, expenses and taxes) based on the value of the underlying ETF, the release said.

“We believe this ETF will be effective for those seeking equity-like upside potential for their clients, with a limited downside buffer,” Karl Cheong, head of distribution at FT Canada, said in a statement.

The fund aims to hedge most of its U.S.-dollar exposure back to the Canadian dollar.