At a glance
BUFD charges 0.95% a year, above the 0.85% average of the 7 funds most like it (the 7th cheapest of 8). It has $2.04B in assets, the 2nd largest of that group. Over the past year it returned +9.5% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned +13.9% a year. At its worst it fell 10.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 9 months after the low. Its ten largest positions make up 83.3% of the fund, out of 12 in all.
The short version
FT Vest Laddered Deep Buffer ETF (BUFD) is a First Trust fund of funds. It holds 12 FT Vest U.S. Equity Deep Buffer ETFs, one for each month. Those funds use options on the SPDR S&P 500 ETF Trust (SPY) to cushion losses between -5% and -30%, and in exchange their gains are capped. BUFD's 0.95% expense ratio is above the 0.85% average for similar buffer funds, and it has paid no distributions.
Price history
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BUFD +9.5% 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 | |
|---|---|---|---|---|---|---|
| BUFD official prospectus, to Dec 31, 2024 | — | +12.40% | — | — | — | +6.23% |
| BUFD price data to Oct 27, 2026 | +8.3% | +9.5% | +13.9% | +7.7% | — | +7.6% |
- Over the year to Oct 27, 2026, BUFD returned +9.5%, 8th of 8 among similar funds.
- Its 5-year annualized return was +7.7%.
- Its worst full calendar year was 2022 (-7.7%); its best was 2023 (+15.4%).
- The deepest fall in its price history was 10.8% (Mar 29, 2022 to Oct 12, 2022), recovered by Jun 29, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +8.3% | — |
| 2025 | +10.7% | — |
| 2024 | +12.4% | +12.40% |
| 2023 | +15.4% | +15.08% |
| 2022 | -7.7% | -7.43% |
| 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 | Lost 10.5% over that stretch · deepest drop along the way 10.8%, back to its old high 8.5 months after the low |
What's inside
As of Aug 31, 2026, the fund held 12 securities; the ten largest made up 83.29% of assets.
| Fund held | Weight | |
|---|---|---|
| FT Vest U.S. Equity Deep Buffer ETF - February | 8.34% | |
| FT Vest U.S. Equity Deep Buffer ETF - January | 8.34% | |
| FT Vest U.S. Equity Deep Buffer ETF - July | 8.34% | |
| FT Vest U.S. Equity Deep Buffer ETF - April | 8.33% | |
| FT Vest U.S. Equity Deep Buffer ETF - September | 8.33% | |
| FT Vest U.S. Equity Deep Buffer ETF - May | 8.33% | |
| FT Vest U.S. Equity Deep Buffer ETF - November | 8.33% | |
| FT Vest U.S. Equity Deep Buffer ETF - August | 8.32% | |
| FT Vest U.S. Equity Deep Buffer ETF - December | 8.32% | |
| FT Vest U.S. Equity Deep Buffer ETF - June | 8.32% | |
| FT Vest U.S. Equity Deep Buffer ETF - March | 8.32% | |
| FT Vest U.S. Equity Deep Buffer ETF - October | 8.32% |
By country
United States 99.93%By asset type
Stocks 99.93%What changed recently
- Over the three months to Aug 31, 2026, investors added a net $122.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.10%, +0.67%, +1.27%.
How it works
BUFD does not track an index or pick stocks. Instead, First Trust (with Vest Financial as sub-adviser) builds a "ladder" of twelve sister funds: the FT Vest U.S. Equity Deep Buffer ETFs, one named for each month, such as DJAN for January and DFEB for February. As of August 31, 2026, each made up about 8.3% of the fund.
Each underlying fund holds FLEX Options on the SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500 Index. FLEX Options are customizable exchange-traded options whose settlement is guaranteed by the Options Clearing Corporation. Over a one-year "target outcome period" starting on the third Friday of its named month, each fund aims to match SPY's price return (excluding dividends) up to a cap, while buffering losses between -5% and -30%. So the first 5% of a drop, and any loss beyond 30%, are not cushioned. When the period ends, the options roll into new ones and the cap resets based on market conditions.
Because each fund resets in a different month, the ladder spreads out the risk of buying at a bad moment. But BUFD itself has no stated buffer. It usually buys mid-period, so it will likely not get the full buffer, and the caps may limit gains.
What it really costs
- BUFD charges 0.95% a year, versus an average of 0.85% for the similar funds below (7th of 8, cheapest first).
- Of that, 0.1% is the management fee; the rest covers other fund expenses.
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.
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
Its options-based buffers have kept swings well below the stock market's, with a one-year beta of 0.39 as of October 27, 2026, but capped gains limit its growth.
BUFD may soften stock market drops for a retiree who has to sell shares in a bad year. It launched in January 2021, so it has no record in the 2008 or 2020 crashes. In the 2022 bear market, it fell 10.8% from its March 29, 2022 peak to its October 12, 2022 low. That was its deepest drop. It recovered by June 29, 2023, about 8.5 months later. Its worst calendar year was 2022, at -7.43% according to the prospectus. A smaller drop means fewer shares sold at low prices.
There are trade-offs. The underlying buffers don't cover the first 5% of SPY losses or anything past 30%. Gains are capped. The fund has paid no distributions, so any cash has to come from selling shares. Its 0.95% expense ratio is above the 0.85% average for similar funds. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want US large-cap stock exposure with smaller drops. Its deepest decline was 10.8%, during the 2022 bear market.
- People who don't want to time buffer-fund purchases. The 12 monthly underlying ETFs, each about 8.3% of assets, reset at different times.
- Retirees willing to give up some upside for steadier returns. Its one-year volatility was 5.1% as of October 27, 2026.
Look elsewhere if
- Cost-conscious investors. Its 0.95% expense ratio ranks 7th of 8 among similar buffer funds, which average 0.85%.
- Anyone who needs regular income. The fund has paid no distributions, and its underlying ETFs track SPY's price return, which excludes dividends.
- Those seeking more growth. Its 9.5% one-year and 13.9% annualized three-year returns ranked last of 8 similar funds as of October 27, 2026.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| BUFD this fund | 0.95% | $2.04B | +9.5% | +13.9% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| 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% |
| FJUL FT Vest U.S. Equity Buffer ETF - July | 0.85% | $1.29B | +11.2% | +18.2% |
Questions investors ask
Is BUFD good for retirement?
It may suit retirees who want stock exposure with smaller swings, but there are trade-offs. BUFD's deepest drop was 10.8%, in 2022, and it recovered in about 8.5 months. Its one-year beta was 0.39 as of October 27, 2026, which means it moved much less than the broad market. In exchange, gains are capped, the expense ratio is 0.95%, and it has paid no distributions. It launched in 2021, so it has never been through a crash like 2008.
What's the difference between BUFD and BUFR?
Both are First Trust laddered buffer funds, and both charge 0.95%. BUFD holds the Deep Buffer series, which absorbs SPY losses between -5% and -30%. BUFR, the FT Vest Laddered Buffer ETF, uses a similar laddered approach but not the Deep Buffer series. As of October 27, 2026, BUFR returned 11.6% over one year and 16.8% a year over three years. BUFD returned 9.5% and 13.9%. BUFR is also larger: $10.49 billion in net assets versus $2.04 billion as of August 31, 2026.
Does BUFD pay dividends?
No. As of October 27, 2026, BUFD had made no distributions. That fits its design. The underlying Deep Buffer ETFs hold FLEX Options on SPY and aim for SPY's price return, which leaves out the dividends paid by SPY's stocks. Anyone who needs cash from this fund would have to sell shares. For regular income, dividend-focused or bond funds are worth comparing.
Can you lose money in BUFD?
Yes. BUFD itself provides no stated buffer. Its underlying ETFs aim to absorb SPY losses between -5% and -30% over each one-year period. That leaves holders with the first 5% of losses and any losses beyond 30%. BUFD also buys shares partway through those periods, so it rarely gets the full buffer. Its worst quarter was a 7.97% loss in the quarter ended June 30, 2022. Its deepest drop was 10.8%, also in 2022.
What is BUFD's expense ratio?
BUFD's expense ratio is 0.95%, according to its prospectus filed December 29, 2025. The fund's own management fee is 0.10%. Because it is a fund of funds, it also bears the costs of the underlying ETFs it holds. That is above the 0.85% average for similar buffer funds, and it ranks 7th of 8 on cost. Innovator's PJAN and PDEC charge 0.79%. Single-month FT Vest buffer ETFs such as FJAN charge 0.85%. BUFR charges the same 0.95%.