At a glance
BUFG charges 1.13% a year, above the 0.88% average of the 7 funds most like it (the most expensive of 8). It has $332.2M in assets, the 8th largest of that group. Over the past year it returned +10.4% with distributions reinvested (S&P 500: +11.5%), 7th of those 8 funds; over three years it returned +16.3% a year. At its worst it fell 17.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 9 months after the low.
The short version
FT Vest Buffered Allocation Growth ETF (BUFG) is a First Trust fund of funds. It holds 5–7 FT Vest buffer ETFs, which use options on the SPDR S&P 500 ETF Trust (SPY) to absorb part of SPY's losses in exchange for a cap on gains. A manager picks and reweights these funds to chase more upside. That extra layer costs 1.13% a year, the highest of the similar buffer funds compared here. BUFG itself promises no buffer.
Price history
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BUFG +10.4% 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 | |
|---|---|---|---|---|---|---|
| BUFG official prospectus, to Dec 31, 2024 | — | +14.78% | — | — | — | +6.52% |
| BUFG price data to Oct 27, 2026 | +9.4% | +10.4% | +16.3% | — | — | +8.5% |
- Over the year to Oct 27, 2026, BUFG returned +10.4%, 7th of 8 among similar funds.
- Its worst full calendar year was 2022 (-11.6%); its best was 2023 (+18.5%).
- The deepest fall in its price history was 17.6% (Jan 4, 2022 to Oct 12, 2022), recovered by Jul 13, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +9.4% | — |
| 2025 | +12.3% | — |
| 2024 | +15.1% | +14.78% |
| 2023 | +18.5% | +18.85% |
| 2022 | -11.6% | -11.94% |
| 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 17.6% over that stretch · deepest drop along the way 17.6%, back to its old high 9 months after the low |
What's inside
As of Aug 31, 2026, the fund held 7 securities; the ten largest made up 99.98% of assets.
| Fund held | Weight | |
|---|---|---|
| FT Vest U.S. Equity Buffer ETF - May | 16.99% | |
| FT Vest U.S. Equity Buffer ETF - June | 16.71% | |
| FT Vest U.S. Equity Buffer ETF - April | 14.20% | |
| FT Vest U.S. Equity Buffer ETF - January | 13.14% | |
| FT Vest U.S. Equity Moderate Buffer ETF - May | 13.06% | |
| FT Vest U.S. Equity Moderate Buffer ETF - June | 12.95% | |
| FT Vest U.S. Equity Buffer ETF - February | 12.92% |
By country
United States 99.98%By asset type
Stocks 99.98%What changed recently
- Over the three months to Aug 31, 2026, investors added a net $13.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -0.07%, +0.41%, +1.70%.
How it works
BUFG does not track an index. First Trust Advisors and its sub-adviser, Vest Financial, put nearly all of the fund's assets into other First Trust ETFs. Each of those ETFs holds FLEX Options on SPY. FLEX Options are customizable exchange-traded options backed by the Options Clearing Corporation. Over a period of about one year, each underlying ETF aims to match SPY's price gains up to a cap (a ceiling on gains) while absorbing a set slice of losses (the buffer). The four types are Buffer ETFs (the first 10% of losses), Moderate Buffer ETFs (the first 15%), Deep Buffer ETFs (losses between -5% and -30%) and Enhance & Moderate Buffer ETFs (about twice SPY's gains up to a cap, plus the first 15% of losses).
Vest picks the 5–7 funds it sees as having the most room to grow while still offering some protection. It weighs SPY's price, the days left in each fund's period, expected market swings, and the cap and buffer each fund has left. It reviews the mix every quarter. As of August 31, 2026, BUFG held seven funds: five Buffer ETFs and two Moderate Buffer ETFs, each worth 13% to 17% of assets.
The catch: caps and buffers fully apply only to shares bought on the first day of a period and held to the end. BUFG usually buys partway through and may sell early, so it will likely not get the full buffer. Turnover was 190%.
What it really costs
- BUFG charges 1.13% a year, versus an average of 0.88% for the similar funds below (8th of 8, cheapest first).
- Of that, 0.2% 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
BUFG offers stock-market exposure with smaller swings than the S&P 500, but it still fell sharply in 2022 and pays no income.
BUFG could soften the swings of a stock allocation. As of October 27, 2026, its one-year volatility was 7.5%, and its beta was 0.57, meaning it moved a little over half as much as the market. Softer is not safe, though. In the 2022 bear market it fell 17.6% from January 4 to October 12, 2022, and needed about nine months, until July 13, 2023, to recover. The prospectus shows its worst calendar year was 2022, at -11.94%. It launched in October 2021, so it has no record for 2008 or 2020. A retiree who had to sell shares in 2022 would have locked in real losses. The fund has no recorded distributions, so any withdrawals mean selling shares. Its 1.13% expense ratio compares with a 0.88% average for similar buffer funds. Past results don't predict future returns, 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 S&P 500 exposure with milder swings, given BUFG's 0.57 beta and 7.5% one-year volatility as of October 27, 2026.
- People who prefer a manager to choose among First Trust's buffer ETFs instead of picking and timing individual monthly buffer funds themselves.
- Investors who can accept capped gains and no income in exchange for a partial cushion against moderate S&P 500 declines.
Look elsewhere if
- Cost-conscious investors: BUFG's 1.13% expense ratio was the highest of eight similar buffer funds, which averaged 0.88%.
- Retirees who need regular income, since BUFG has no recorded distributions and any cash must come from selling shares.
- Anyone expecting firm downside protection: BUFG itself offers no stated buffer and fell 17.6% in 2022 before recovering in July 2023.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| BUFG this fund | 1.13% | $332.2M | +10.4% | +16.3% |
| 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% |
| FJUL FT Vest U.S. Equity Buffer ETF - July | 0.85% | $1.29B | +11.2% | +18.2% |
| BUFQ FT Vest Laddered Nasdaq Buffer ETF | 1% | $1.61B | +13.5% | +17.6% |
Questions investors ask
Does BUFG protect against stock market losses?
Only partly, and with no guarantee. The fund itself provides no stated buffer. The protection comes from the ETFs it holds, which buffer either the first 10% or the first 15% of SPY's losses over roughly one-year periods. Because BUFG usually buys those funds partway through a period, it will likely not get the full buffer. In 2022 it fell 17.6% from January 4 to October 12 and needed about nine months to recover.
Does BUFG pay dividends?
No. BUFG has no recorded distributions. Its underlying ETFs hold options tied to SPY's price return, which leaves out the dividends paid by S&P 500 companies. Investors who need cash from the fund would have to sell shares. That matters for retirees, because selling in a down year like 2022 locks in losses. Income-focused investors may want to compare funds built to pay regular distributions.
What's the difference between BUFG and BUFR?
Both are First Trust buffer funds tied to SPY. BUFR, the FT Vest Laddered Buffer ETF, uses a laddered approach. BUFG has a manager choose and reweight 5–7 buffer ETFs every quarter. BUFR is cheaper at 0.95% versus 1.13%, and it is much larger, with $10.5 billion in net assets against BUFG's $332 million as of August 31, 2026. As of October 27, 2026, BUFR returned 11.6% over one year and 16.8% a year over three years. BUFG returned 10.4% and 16.3%.
Why is BUFG's expense ratio so high?
BUFG's 1.13% expense ratio, from its prospectus filed December 29, 2025, includes two layers of fees. Its own management fee is 0.20%. Because it invests in other First Trust ETFs, it also pays those funds' fees. That puts it last on cost among eight similar buffer funds, which averaged 0.88%. The prospectus also flags a conflict of interest: First Trust earns fees on the underlying funds it chooses for BUFG.
How has BUFG performed since launch?
BUFG launched on October 26, 2021. Its prospectus shows -11.94% for 2022, 18.85% for 2023 and 14.78% for 2024, with a 6.52% average annual return since inception as of December 31, 2024. Price-based returns were 12.33% for 2025 and 9.4% for 2026 through October 27. Over the three years to that date, it returned 16.3% a year. That trailed BUFR's 16.8%.