At a glance
BUFI charges 0.69% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $142.1M in assets, the 8th largest of that group.
The short version
AB International Buffer ETF (BUFI) is an actively managed fund that holds options on the iShares MSCI EAFE ETF. That ETF tracks large and mid-sized companies in developed markets outside the US and Canada. Over periods of about 90 days, BUFI aims to cushion losses within a 10% buffer while capping gains at roughly 4% to 5%. Its 0.69% expense ratio is the lowest among the similar buffer funds compared.
Price history
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BUFI — 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 | |
|---|---|---|---|---|---|---|
| BUFI official prospectus, to Dec 31, 2025 | — | +13.56% | — | — | — | — |
| MSCIEAFE Index index, same period | — | +24.09% | — | — | — | — |
| BUFI price data to Oct 27, 2026 | +0.7% | — | — | — | — | — |
- The deepest fall in its price history was 3.5% (Aug 25, 2026 to Oct 23, 2026), not yet recovered.
| 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 added a net $6.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.51%, +1.19%, +1.43%.
How it works
BUFI doesn't own stocks directly. Instead it holds FLEX options, which are exchange-listed options with custom strike prices and expiration dates, on the iShares MSCI EAFE ETF. That ETF tracks the MSCI EAFE Index, which covers about 85% of the market value of large and mid-sized companies in developed countries across Europe, Australasia and the Far East. The fund buys a call option to get stock exposure, buys one put and sells another to create the buffer, and sells a call to set the cap. As of August 31, 2026, it held exactly those four options, all expiring October 30, 2026.
Each "hedge period" usually lasts 90 days but can run up to 120. The fund gives up any gains above the cap, which it expects to fall between 4% and 5%. The buffer guards against declines of up to 10%. However, the fund may take the first 2% of a drop itself so that it can set a higher cap. Shareholders bear any losses beyond the buffer. The cap and buffer are set before fees, so fees reduce both.
This is not a fixed "defined outcome" fund. The manager can reset the options early to protect capital or lock in gains, which the fund calls an "Upside Ratchet." Each reset sets a new cap and buffer. Periods are measured from when the fund sets up its options, not from when you buy. A buyer partway through a period may have little upside left.
What it really costs
- BUFI 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 |
|---|---|---|---|---|
| BUFI | $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
It adds developed-market stocks from outside the US to a portfolio, with options that limit both the losses and the gains over each period.
BUFI launched in December 2024, so it has no record from the 2008, 2020 or 2022 downturns. The prospectus shows a 1-year return of 13.56% as of December 31, 2025, compared with 24.09% for the MSCI EAFE Index. That gap is the price of the cap in a rising market. The fund's deepest drop in price data starting June 9, 2026 was 3.5%, from August 25 to October 23, 2026, and it had not recovered as of October 27, 2026. The fund has recorded no distributions, so anyone drawing cash would have to sell shares. In the SEC's standard $10,000 example, costs come to $70 after one year and $859 after 10 years. Past results don't predict future ones, and a retirement plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want developed-market stocks outside the US with a 10% buffer each period, and who accept giving up gains above about 4%–5%.
- Cost-conscious buffer-fund shoppers: BUFI's 0.69% expense ratio compares with a 0.86% average for the similar buffer funds compared.
- Holders who don't need regular income and are comfortable selling shares for cash, since the fund has recorded no distributions.
Look elsewhere if
- Investors seeking full international stock returns: BUFI returned 13.56% versus 24.09% for the MSCI EAFE Index in the year to December 31, 2025.
- Anyone wanting a long track record: launched in December 2024, the fund hasn't been tested in a deep or long bear market.
- Those wanting predictable outcomes: the manager can reset the options early, and buyers mid-period can't easily see how much cap or buffer remains.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| BUFI this fund | 0.69% | $142.1M | — | — |
| 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
Does BUFI pay dividends?
No distributions have been recorded for BUFI. The fund holds options on the iShares MSCI EAFE ETF rather than the stocks themselves. Holders of options generally don't receive the dividends that the underlying companies pay. For a retiree who needs cash flow, that means income would have to come from selling shares or from other holdings in the portfolio, not from regular payouts by this fund.
How does the BUFI buffer work?
BUFI uses options to limit losses on the iShares MSCI EAFE ETF to within a 10% buffer over hedge periods that usually last 90 days. The fund may take the first 2% of a decline itself so it can set a higher cap. Losses beyond the buffer pass through in full. In return, gains are capped, usually at 4% to 5% per period. The manager can reset early, and each reset sets a new cap and buffer.
What is BUFI's expense ratio?
BUFI's expense ratio is 0.69%, according to the prospectus filed March 27, 2026. That is the lowest of the eight buffer funds compared, whose average is 0.86%. In the SEC's standard example, which assumes $10,000 invested with a 5% annual return, you would pay about $70 in one year, $221 over three years, $384 over five years and $859 over 10 years.
What's the difference between BUFI and BUFR?
The biggest differences are focus, cost and size. BUFI references developed-market stocks outside the US and Canada through the iShares MSCI EAFE ETF. FT Vest Laddered Buffer ETF (BUFR) is a laddered fund: it spreads its money across several buffer series that start on different dates. BUFR charges 0.95% against BUFI's 0.69%. It had about $10.5 billion in net assets, compared with about $142 million for BUFI, as of August 31, 2026.
How did BUFI perform in 2025?
BUFI gained, but it lagged international stocks. The prospectus shows a 1-year return of 13.56% as of December 31, 2025, compared with 24.09% for the MSCI EAFE Index. Its strongest quarter was a 5.82% gain in the quarter ended June 30, 2025. Its weakest was still a 3.05% gain, in the quarter ended September 30, 2025. In a strong market, the cap on gains held back its returns.