At a glance
BUFS charges 1.01% a year, above the 0.86% average of the 7 funds most like it (the most expensive of 8). It has $190.3M in assets, the 8th largest of that group. Over the past year it returned +8.8% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds.
The short version
FT Vest Laddered Small Cap Moderate Buffer ETF (BUFS) is a First Trust fund of funds. It splits its money among four buffer ETFs. Each one uses options on the iShares Russell 2000 ETF to absorb the first 15% of losses over one year, and in return its gains are capped. Because the four funds reset at different times, the timing risk is spread out. Its 1.01% expense ratio is the highest among the similar buffer funds compared.
Price history
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BUFS +8.8% 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 | |
|---|---|---|---|---|---|---|
| BUFS price data to Oct 27, 2026 | +8.9% | +8.8% | — | — | — | +9.5% |
- Over the year to Oct 27, 2026, BUFS returned +8.8%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+7.1%); its best was 2025 (+7.1%).
- The deepest fall in its price history was 15% (Dec 4, 2024 to Apr 8, 2025), recovered by Sep 5, 2025.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +8.9% |
| 2025 | +7.1% |
| 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 4 securities; the ten largest made up 99.92% of assets.
| Fund held | Weight | |
|---|---|---|
| FT Vest U.S. Small Cap Moderate Buffer ETF - November | 25.08% | |
| FT Vest U.S. Small Cap Moderate Buffer ETF - February | 24.96% | |
| FT Vest U.S. Small Cap Moderate Buffer ETF - May | 24.95% | |
| FT Vest U.S. Small Cap Moderate Buffer ETF - August | 24.93% |
By country
United States 99.92%By asset type
Stocks 99.92%What changed recently
- Over the three months to Aug 31, 2026, investors added a net $25.1M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.62%, -0.08%, +0.64%.
How it works
BUFS does not pick stocks. It puts substantially all of its assets into four First Trust buffer ETFs: the February, May, August and November versions of FT Vest U.S. Small Cap Moderate Buffer ETF (SFEB, SMAY, SAUG and SNOV). As of August 31, 2026, each made up about 25% of the fund, with 0.09% in cash. First Trust Advisors manages the fund, and Vest Financial is the sub-adviser. BUFS buys these shares on the open market.
Each underlying ETF holds FLEX Options, which are customizable options traded on an exchange. The options are on the iShares Russell 2000 ETF (IWM), which tracks the Russell 2000 Index of small US companies. Each fund's outcome period lasts about a year and starts on the third Friday of the month it is named for. Over that period, the fund aims to match IWM's price return, which leaves out dividends, up to a cap. It also aims to absorb the first 15% of IWM's losses. Losses beyond that pass through. The cap is reset each year based on market conditions. The 15% buffer stays the same.
One underlying fund resets each quarter, so BUFS spreads out the risk of buying in at a bad moment. But BUFS itself has no stated buffer. It usually buys shares partway through each period, so it will likely not get the full 15% cushion. Its gains can also be limited by the caps.
What it really costs
- BUFS charges 1.01% a year, versus an average of 0.86% for the similar funds below (8th 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
It adds small-cap stock exposure with options-based buffers that have dampened its swings, but it offers no income and only limited loss protection.
BUFS could add small-cap stock exposure with gentler swings than owning small caps directly. As of October 27, 2026, its one-year volatility was 7.8% and its beta was 0.48 (beta measures how much a fund moves with the broad market). It launched on May 29, 2024, so it was not around for the 2008, 2020 or 2022 downturns. Its only full calendar year, 2025, returned 7.1%. Its deepest drop was 15%, from December 4, 2024 to April 8, 2025. It recovered by September 5, 2025, about five months later. Selling near that low would have locked in a real loss. It pays no distributions, and its 1.01% expense ratio compares with a 0.86% average for similar buffer 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 Russell 2000 small-cap exposure and accept capped gains in exchange for a cushion against the first 15% of losses.
- People who want one ticker holding four buffer ETFs that reset in February, May, August and November, instead of timing single buffer funds.
- Growth-focused holders who want smaller swings: one-year volatility was 7.8% and beta was 0.48 as of October 27, 2026.
Look elsewhere if
- Cost-conscious investors: the 1.01% expense ratio ranked last of eight similar buffer funds, which averaged 0.86%.
- Anyone who needs income from a portfolio, since no distributions have been recorded for this fund.
- Investors who want a long track record. Launched in May 2024, it missed 2008, 2020 and 2022, and it fell 15% in 2024–2025.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| BUFS this fund | 1.01% | $190.3M | +8.8% | — |
| 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 BUFS pay dividends?
No. No distributions have been recorded for BUFS. This follows from its design. The underlying buffer ETFs hold FLEX Options on IWM and aim to match IWM's price return, which leaves out the dividends that small companies pay. So any return comes from changes in the share price, shaped by the buffers and caps. Investors who want regular income from small caps may want to compare funds that pay distributions.
Does BUFS protect against losses?
Only partly, and with no guarantee. BUFS itself has no stated buffer. The protection comes from its four underlying ETFs. Each aims to absorb the first 15% of IWM's losses over its own one-year period. BUFS usually buys those shares partway through a period, so it will likely not get the full benefit. Losses beyond 15% pass through. The fund fell as much as 15% between December 4, 2024 and April 8, 2025.
What's the difference between BUFS and BUFR?
Both are FT Vest laddered buffer ETFs. BUFS holds four small-cap buffer funds tied to the iShares Russell 2000 ETF. BUFR's name doesn't point to a small-cap focus, so it may not be a like-for-like swap. As of August 31, 2026, BUFR held about $10.5 billion and BUFS $190.3 million. BUFR costs 0.95% and BUFS 1.01%. As of October 27, 2026, BUFR's one-year return was 11.6% and BUFS's was 8.8%.
Why is the BUFS expense ratio so high?
BUFS's expense ratio is 1.01%, according to its prospectus filed December 29, 2025. Its own management fee is just 0.10%. A fund of funds' total cost typically also includes the fees of the funds it holds, here the four underlying buffer ETFs. That makes BUFS the most expensive of eight similar buffer funds compared, which averaged 0.86%. The prospectus also flags a conflict of interest: First Trust advises the underlying ETFs too.
How often does BUFS reset its cap?
BUFS itself has no cap or buffer, but one of its four underlying ETFs resets every quarter. Each starts a new one-year outcome period on the third Friday of February, May, August or November. At that point, it sets a new cap based on market conditions and renews its 15% buffer. Caps can rise or fall from one period to the next, so the amount of upside BUFS can capture changes over time.