At a glance
BUFC charges 0.69% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $1.06B in assets, the 7th largest of that group. Over the past year it returned +6.4% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds.
The short version
AB Conservative Buffer ETF (BUFC) is an actively managed AllianceBernstein fund that owns options on the SPDR S&P 500 ETF Trust, not stocks. Over periods of about 90 days, it aims to absorb S&P 500 losses of up to 15% (sometimes after the fund takes the first 1%). In exchange, gains are capped at roughly 2% to 4%. Its 0.69% expense ratio is the lowest of the eight buffer ETFs in our comparison.
Price history
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BUFC +6.4% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| BUFC official prospectus, to Dec 31, 2025 | — | +5.52% | — | — | — | +8.40% |
| S&P 500Index index, same period | — | +17.88% | — | — | — | +22.40% |
| BUFC price data to Oct 27, 2026 | +5.3% | +6.4% | — | — | — | +7.7% |
- Over the year to Oct 27, 2026, BUFC returned +6.4%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+5.5%); its best was 2024 (+10.8%).
- The deepest fall in its price history was 8.3% (Feb 19, 2025 to Apr 8, 2025), recovered by Aug 15, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +5.3% | — |
| 2025 | +5.5% | +5.52% |
| 2024 | +10.8% | +10.71% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
What's inside
As of Aug 31, 2026, the fund held 0 securities; the ten largest made up 0% of assets.
| Holding | Weight |
|---|
By country
By asset type
What changed recently
- Over the three months to Aug 31, 2026, investors withdrew a net $20.1M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.14%, +0.49%, +1.11%.
How it works
AllianceBernstein actively manages BUFC, which invests nearly all its assets in options, not stocks. Its FLEX options, customizable exchange-listed contracts, reference the SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500 Index. A call option is the right to buy, and a put the right to sell, at a set price by a set date. The fund buys a call to follow SPY's price, buys a put and sells a lower one to form the buffer, and sells a call to set the cap.
Each hedge period typically lasts 90 days. The fund aims to shield holders from SPY price drops of up to 15%, but may bear the first 1% of losses to keep a higher cap. Gains are capped, typically at 2% to 4% per period, and losses beyond 15% pass through. Both limits are set before fees, which shrink them.
BUFC's terms are not fixed: its manager can sell the options early to lock in gains or protect capital (an “Upside Ratchet”), then set new limits. Each period starts when the fund buys its options, not when an investor buys shares, so a mid-period buyer may get less buffer or little room under the cap. As of August 31, 2026, it held four options on SPY, all expiring November 30, 2026.
What it really costs
- BUFC charges 0.69% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $70 in the first year and $859 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| BUFC | $70 | $221 | $384 | $859 |
Structure and tax notes
- Uses options to limit losses within a range (the buffer) in exchange for a cap on gains over each outcome period; results depend on when you buy relative to the period start.
In a retirement portfolio
BUFC trades most of the stock market's upside for a buffer against moderate S&P 500 declines over short periods.
BUFC could stand in for part of a stock allocation when lower swings matter more than growth. As of October 27, 2026, its one-year volatility was 4.5% and its beta was 0.31. That means it moved roughly a third as much as the market. It launched in December 2023, so it has no record in the 2008, 2020 or 2022 sell-offs. Its deepest drop was 8.3%, from February 19 to April 8, 2025, and it recovered by August 15, 2025, about four months later. Even its weakest calendar year, 2025, was a 5.5% gain. The trade-off is steep: it returned 5.52% in 2025, compared with 17.88% for the S&P 500. It has paid no distributions, so the only way to draw cash is to sell shares. Under the SEC's $10,000 example, costs are $70 in year one. Past results don't predict the future, and any plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want S&P 500 exposure with losses buffered up to 15% each roughly 90-day period, and who accept gains capped near 2%–4%.
- Cost-conscious buffer-fund shoppers: BUFC's 0.69% expense ratio compares with a 0.86% average for the similar buffer ETFs we reviewed.
- Investors who value a smoother ride: one-year volatility was 4.5%, and its deepest drop was 8.3% as of October 27, 2026.
Look elsewhere if
- Those seeking stock-like growth: BUFC returned 5.52% in 2025, compared with 17.88% for the S&P 500.
- Retirees who need regular income from a fund, since BUFC has recorded no distributions.
- Investors who want a long track record: launched in December 2023, BUFC hasn't been tested in a bear market like 2008 or 2022.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| BUFC this fund | 0.69% | $1.06B | +6.4% | — |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Is BUFC good for retirement?
It depends on what the money is for. BUFC may suit retirees who want some S&P 500 exposure with smaller swings. Its one-year volatility was 4.5% as of October 27, 2026, and its deepest drop was 8.3%. The cost of that calm is lower returns: 5.52% in 2025, compared with 17.88% for the S&P 500. It pays no distributions, and it hasn't been through a major bear market since its December 2023 launch.
Does BUFC pay dividends?
No. BUFC has recorded no distributions. The fund holds options on the SPDR S&P 500 ETF Trust rather than the stocks themselves, so it doesn't pass along the S&P 500's dividends. Any return comes from changes in the share price. An investor who needs cash would have to sell shares, which makes BUFC a poor fit as a direct income source.
What is BUFC's expense ratio?
BUFC's expense ratio is 0.69%, according to its prospectus filed March 27, 2026. That made it the cheapest of the eight buffer ETFs in our comparison, where the average was 0.86% and some peers charged 0.95%. Under the SEC's standard example ($10,000 invested, 5% annual return), total costs come to about $70 after one year, $221 after three, $384 after five and $859 after ten.
BUFC vs BUFR: what's the difference?
Both are buffer ETFs, but they differ in cost, size and design. FT Vest Laddered Buffer ETF (BUFR) charges 0.95%, compared with BUFC's 0.69%. As of August 31, 2026, BUFR had about $10.5 billion in net assets, versus about $1.06 billion for BUFC. BUFC uses short hedge periods of about 90 days with a 2%–4% cap, which its manager can reset early. As of October 27, 2026, BUFR returned 11.6% over one year, compared with BUFC's 6.4%.
Can you lose money in BUFC?
Yes. The fund may absorb the first 1% of an S&P 500 decline, and losses beyond 15% are not buffered. Fees also reduce the protection. Someone who buys partway through a hedge period may get less buffer than the stated amount. The prospectus warns that the buffer may not protect the fund at all. In practice, BUFC fell 8.3% from February 19 to April 8, 2025, before recovering by August 15, 2025.