At a glance
BUFT charges 1.21% a year, above the 0.86% average of the 7 funds most like it (the most expensive of 8). It has $160.6M in assets, the 8th largest of that group. Over the past year it returned +9.2% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned +11.3% a year. At its worst it fell 10.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 12 months after the low.
The short version
FT Vest Buffered Allocation Defensive ETF (BUFT) is a First Trust fund of funds. It holds five to seven buffered ETFs that use options on the SPDR S&P 500 ETF Trust (SPY) to soften losses in exchange for capped gains. It aims to preserve capital but offers no buffer of its own. At 1.21% a year, it costs more than all seven similar buffer funds it was compared with.
Price history
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BUFT +9.2% 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 | |
|---|---|---|---|---|---|---|
| BUFT official prospectus, to Dec 31, 2024 | — | +7.78% | — | — | — | +3.67% |
| BUFT price data to Oct 27, 2026 | +7.8% | +9.2% | +11.3% | — | — | +5.8% |
- Over the year to Oct 27, 2026, BUFT returned +9.2%, 8th of 8 among similar funds.
- Its worst full calendar year was 2022 (-8.4%); its best was 2023 (+12.9%).
- The deepest fall in its price history was 10.4% (Mar 29, 2022 to Sep 30, 2022), recovered by Sep 14, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +7.8% | — |
| 2025 | +9.7% | — |
| 2024 | +7.7% | +7.78% |
| 2023 | +12.9% | +12.54% |
| 2022 | -8.4% | -8.01% |
| 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 9.8% over that stretch · deepest drop along the way 10.4%, back to its old high 11.5 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 Enhance & Moderate Buffer ETF - September | 17.26% | |
| FT Vest U.S. Equity Enhance & Moderate Buffer ETF - October | 15.70% | |
| FT Vest U.S. Equity Enhance & Moderate Buffer ETF - November | 15.10% | |
| FT Vest U.S. Equity Enhance & Moderate Buffer ETF - March | 14.18% | |
| FT Vest U.S. Equity Enhance & Moderate Buffer ETF - December | 13.21% | |
| FT Vest U.S. Equity Deep Buffer ETF - March | 12.39% | |
| FT Vest U.S. Equity Moderate Buffer ETF - September | 12.15% |
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 $13.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.04%, +0.70%, +1.00%.
How it works
BUFT does not own stocks or options directly. Under normal conditions, it puts substantially all its assets into other First Trust ETFs, sub-advised by Vest Financial. Each of those funds holds FLEX Options on SPY. These are customizable exchange-traded options whose settlement is guaranteed by the Options Clearing Corporation. Each underlying fund runs a "target outcome" strategy over a period of about one year. It tracks SPY's price return, which leaves out dividends, up to a cap, and it absorbs part of any losses. Four types qualify. Buffer funds absorb the first 10% of losses. Moderate Buffer funds absorb the first 15%. Deep Buffer funds absorb losses between -5% and -30%. Enhance & Moderate Buffer funds aim for about twice SPY's gains up to a cap, with a 15% buffer.
Vest picks 5 to 7 of these funds. It weights them using factors such as SPY's price, the days left in each period, implied volatility, and how much cap and buffer each fund has left. The portfolio is reviewed every quarter, and turnover was 293%. As of August 31, 2026, the fund held seven funds. Five were Enhance & Moderate Buffer series, led by XSEP (17.3%) and XOCT (15.7%). The other two were DMAR (12.4%) and GSEP (12.1%).
BUFT itself has no stated buffer. It usually buys shares of the underlying funds after their periods start and may sell before the periods end. As a result, its returns can be very different from the outcomes those funds seek.
What it really costs
- BUFT charges 1.21% a year, versus an average of 0.86% 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
It aims to preserve capital by holding buffered S&P 500 funds that give up some upside to soften losses.
BUFT could act as a cushioned way to hold US stocks. It launched on October 26, 2021, so it has no record from 2008 or 2020. In the 2022 bear market, it fell 10.4% from March 29 to September 30, 2022. It took about 11.5 months to regain its peak, which it reached on September 14, 2023. Its worst calendar year was 2022, at -8.01% according to the prospectus. Its weakest quarter lost 7.58%. A retiree who sold shares in late 2022 would have locked in part of that loss. No distributions have been recorded, so any cash would have to come from selling shares. The 1.21% expense ratio is high, and capped gains have held back returns. As of October 27, 2026, its one-year return of 9.2% was the lowest among seven 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 milder stock swings. As of October 27, 2026, one-year volatility was 3.3% and beta was 0.2, meaning low sensitivity to market moves.
- Those who prefer a manager to pick and rotate among First Trust buffer ETFs each quarter instead of timing outcome periods themselves.
- People willing to give up much of SPY's upside and its dividends for partial protection against losses.
Look elsewhere if
- Cost-conscious investors. Its 1.21% expense ratio is the highest of the eight funds compared, and the seven similar buffer funds averaged 0.86%.
- Anyone who needs regular income from a holding, since no distributions have been recorded for this fund.
- Investors who want a precise, stated buffer. BUFT provides none itself, and the buffers of its underlying funds may already be partly used up.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| BUFT this fund | 1.21% | $160.6M | +9.2% | +11.3% |
| 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% |
| 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 BUFT pay dividends?
No distributions have been recorded for BUFT. Its underlying funds target outcomes based on SPY's price return, which leaves out the dividends paid by S&P 500 companies. Investors who need cash from this fund would have to sell shares. That is something to weigh for anyone drawing income from a portfolio, because selling in a down year locks in losses.
What's the difference between BUFT and BUFD?
Both are First Trust buffer funds sub-advised by Vest. BUFD, the FT Vest Laddered Deep Buffer ETF, costs 0.95% a year compared with BUFT's 1.21%. It is also much larger: $2.04 billion in net assets compared with BUFT's $160.6 million as of August 31, 2026. BUFD returned 9.5% over one year, compared with BUFT's 9.2%, as of October 27, 2026. BUFT's manager chooses 5 to 7 underlying funds from four buffer types each quarter.
Can you lose money in BUFT?
Yes. BUFT fell 10.4% between March 29 and September 30, 2022, and it lost 8.01% for calendar year 2022. The prospectus states that the fund itself provides no stated buffer against losses. It also says the fund will likely not receive the full benefit of its underlying funds' buffers. Buffers can fail, and SPY losses beyond a buffer pass through. The fund is not a bank deposit and is not FDIC insured.
Why is BUFT's expense ratio so high?
BUFT's expense ratio was 1.21% in its prospectus filed December 29, 2025, even though its management fee is only 0.20%. The gap comes from the fact that BUFT is a fund of funds. It also pays the fees of the First Trust ETFs it owns. The prospectus notes a conflict of interest, because the advisor earns fees on those affiliated funds. The seven similar buffer funds compared averaged 0.86%.
What are BUFT's returns?
As of December 31, 2024, the prospectus showed a one-year return of 7.78% and an average annual return of 3.67% since launch. Price-based returns as of October 27, 2026, were 9.2% over one year and 11.3% a year over three years. Both trailed all seven similar buffer funds compared. Its strongest quarter gained 5.63% (Q4 2023), and its weakest lost 7.58% (Q2 2022).