At a glance
DAUG charges 0.85% a year, below the 0.86% average of the 7 funds most like it (the 3rd cheapest of 8). It has $418.7M in assets, the 8th largest of that group. Over the past year it returned +8.5% 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 14.1% in the 2020 crash (S&P 500: 33.7%) and 15.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 15 months after the lows.
The short version
FT Vest U.S. Equity Deep Buffer ETF – August (DAUG) is a First Trust fund that holds FLEX options on the SPDR S&P 500 ETF Trust (SPY), not stocks. Over each one-year period starting in August, it aims to absorb SPY losses between -5% and -30% in exchange for a cap on gains. For August 2025 to August 2026, that cap was 11.98% before fees. It costs 0.85% a year and pays no dividends.
Price history
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DAUG +8.5% 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 | |
|---|---|---|---|---|---|---|
| DAUG official prospectus, to Dec 31, 2024 | — | +12.23% | — | +5.30% | — | +5.54% |
| DAUG price data to Oct 27, 2026 | +7.9% | +8.5% | +13.9% | +6.5% | — | +6.8% |
- Over the year to Oct 27, 2026, DAUG returned +8.5%, 8th of 8 among similar funds.
- Its 5-year annualized return was +6.5%.
- In the 2020 COVID crash it fell 14.1% and regained its old high 3.7 months after the low.
- Its worst full calendar year was 2022 (-11.9%); its best was 2023 (+13.8%).
- The deepest fall in its price history was 15.3% (Jan 3, 2022 to Oct 12, 2022), recovered by Dec 27, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +7.9% | — |
| 2025 | +11.8% | — |
| 2024 | +12.0% | +12.23% |
| 2023 | +13.8% | +13.75% |
| 2022 | -11.9% | -12.09% |
| 2021 | +6.7% | +6.72% |
| 2020 | +8.0% | +8.08% |
| 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 | Lost 14.1% over that stretch · deepest drop along the way 14.1%, back to its old high 3.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 15.3% over that stretch · deepest drop along the way 15.3%, back to its old high 14.5 months after the low |
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 $48.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.45%, +0.87%, +0.66%.
How it works
DAUG does not own stocks directly. Under normal conditions it invests nearly all of its assets in FLEX Options. These are exchange-traded option contracts whose strike prices and expiration dates can be customized. Its options reference SPY, which tracks the S&P 500. Vest Financial is the sub-advisor. As of August 31, 2026, 12 option positions made up 98.94% of assets and cash made up 1.24%. The largest position, a call option on SPY with a very low strike price, was about 94.7% of the fund. Returns follow SPY's price only, not its dividends.
Together, the options aim for set outcomes over a roughly one-year "Target Outcome Period." For August 18, 2025 through August 21, 2026, holders took the first 5% of any SPY loss and were shielded from losses between -5% and -30%. Gains were capped at 11.98%. After fees, the cap was 11.12% and the buffer ran from -5.86% to -30.86%. If SPY falls more than 30%, the fund aims to lose 25 percentage points less than SPY, with a maximum loss of about 75%.
At the end of each period the fund buys new options. The buffer stays the same, but the cap resets based on market conditions. About a week before each reset, the fund's website posts the expected cap range. Investors who buy after the period starts, or sell before it ends, may get very different results.
What it really costs
- DAUG charges 0.85% a year, versus an average of 0.86% for the similar funds below (3rd of 8, cheapest first).
Structure and tax notes
- Organized as a unit investment trust: it cannot lend out its securities or reinvest dividends between payouts, which can create a small drag versus similar open-end ETFs.
- 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 aims to absorb much of a large S&P 500 decline over each one-year period, but it gives up upside and pays no income to do it.
DAUG may soften stock market drops for investors who want S&P 500 exposure with smaller swings. Its one-year beta, a measure of how much it moves with the market, was 0.41 as of October 27, 2026. The buffer only applies over a full period, though. In the 2020 COVID crash, the fund fell 14.1% between February 19 and March 23, 2020, then recovered by July 15, 2020. In the 2022 bear market it fell 15.3%, its deepest drop, and took about 14.5 months to recover. Its worst calendar year was 2022, at -12.09%. A retiree forced to sell in a year like that would have locked in real losses. The fund launched in 2019, so it has no 2008 record. It pays no distributions, so any cash has to come from selling shares. Its 0.85% expense ratio is close to the 0.86% peer average. Past results don't predict future ones, and any 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 but would accept giving up gains above a yearly cap in exchange for protection against SPY losses between -5% and -30%.
- Holders who can buy near the August reset and hold for the full period, which is when the buffer and cap are designed to work.
- People who prefer smaller swings: one-year volatility was 5.5% and beta was 0.41 as of October 27, 2026.
Look elsewhere if
- Retirees who need regular income: DAUG has paid no distributions, and its returns exclude the dividends SPY pays.
- Investors who want full stock market upside: DAUG's one-year return ranked 8th of 8 similar buffer funds as of October 27, 2026.
- Anyone likely to buy or sell mid-period: the fund still fell 15.3% in 2022 and 14.1% in early 2020.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| DAUG this fund | 0.85% | $418.7M | +8.5% | +13.9% |
| 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 DAUG pay dividends?
No. DAUG has recorded no distributions. It holds options on SPY, not SPY shares, and the prospectus says its performance does not reflect the dividends SPY pays. That means investors give up the S&P 500's dividend income as well as any gains above the cap. Retirees who need cash from this holding would have to sell shares. Investors focused on income may want to compare it with funds that make regular payouts.
What happens to DAUG if the S&P 500 drops more than 30%?
The fund still loses money, but less than SPY. For investors who hold for a full outcome period, DAUG aims to lose 25 percentage points less than SPY once SPY's loss goes past 30%. The maximum loss is about 75% before fees. Holders always take the first 5% of any loss. Investors who buy at a price below the lower end of the buffer may get no benefit from it and could lose their whole investment.
What's the difference between DAUG and BUFD?
Both are First Trust deep buffer funds based on the S&P 500. DAUG resets once a year in August. BUFD, the FT Vest Laddered Deep Buffer ETF, is a laddered fund. Laddered funds generally spread money across buffer series with staggered start dates, so buy timing matters less. BUFD charges 0.95% versus DAUG's 0.85%. As of October 27, 2026, BUFD returned 9.5% over one year versus DAUG's 8.5%. Both returned 13.9% a year over three years.
Can I buy DAUG in the middle of the outcome period?
Yes. Shares trade every day, but the stated buffer and cap only apply from the start of a period to its end. Investors who buy mid-period may have less protection or less room to gain. That depends on how far SPY has moved since the reset. The fund's website shows where the fund stands relative to its cap and buffer. Each new period starts when the old one ends, and the next one began after August 21, 2026.
Is DAUG good for retirement?
It depends on what the investor needs from it. DAUG may suit retirees who want stock exposure with smaller drops. Its official one-year return was 12.23% and its five-year return was 5.30% a year as of December 31, 2024. The tradeoffs are a 0.85% fee, no income, capped gains, and losses that still happened mid-period: -12.09% in 2022. It is also small, with $418.7 million in net assets as of August 31, 2026.