You have to subtract the letters from the white oval. It’s a “Boolean” operation.
There are a couple of tutorials here on how to do it. Short story is to change the letters to a path if not already, with the red stroke and no fill. Change the red oval to another color with a white fill. Make sure the black oval has no fill.
Order the letter group to the front and the red oval back. Click on the name and Ctrl+click on the white oval and the pick the “subtract front from back” button.
That will leave a “hole” in your oval that won’t engrave. The white outer edge should also not engrave so you’ll have a raised lip/edge.
I usually put a temporary cyan filled box in back of a group of objects like this so I can see where white is a fill vs just the screen. Then I delete the box when I see that everything has done its thing correctly.