At a glance
DFEB charges 0.85% a year, below the 0.86% average of the 7 funds most like it (the 3rd cheapest of 8). It has $445.5M in assets, the 8th largest of that group. Over the past year it returned +10.6% with distributions reinvested (S&P 500: +11.5%), 6th of those 8 funds; over three years it returned +15.4% a year. At its worst it fell 9.5% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 14 months after the low.
The short version
FT Vest U.S. Equity Deep Buffer ETF – February (DFEB), from First Trust, does not hold stocks. It holds FLEX options on the SPDR S&P 500 ETF Trust (SPY). Over each outcome period of about one year, starting in February, it aims to absorb SPY losses between -5% and -30%. In exchange, it caps gains: the cap was 12.31% before fees for the period ending February 20, 2026. It charges 0.85% a year and pays no dividends.
Price history
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DFEB +10.6% 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 | |
|---|---|---|---|---|---|---|
| DFEB official prospectus, to Dec 31, 2024 | — | +14.02% | — | — | — | +7.08% |
| DFEB price data to Oct 27, 2026 | +9.0% | +10.6% | +15.4% | +8.3% | — | +8.4% |
- Over the year to Oct 27, 2026, DFEB returned +10.6%, 6th of 8 among similar funds.
- Its 5-year annualized return was +8.3%.
- Its worst full calendar year was 2022 (-5.4%); its best was 2024 (+13.9%).
- The deepest fall in its price history was 14.1% (Feb 24, 2020 to Mar 18, 2020), recovered by Jun 8, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +9.0% | — |
| 2025 | +11.8% | — |
| 2024 | +13.9% | +14.02% |
| 2023 | +12.5% | +12.54% |
| 2022 | -5.4% | -5.58% |
| 2021 | +8.8% | +8.98% |
| 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 7.2% over that stretch · deepest drop along the way 9.5%, back to its old high 13.5 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 withdrew a net $21.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -0.02%, +0.57%, +1.42%.
How it works
DFEB does not own stocks. As of August 31, 2026, about 99% of its assets were in 16 FLEX options on SPY, which tracks the S&P 500. FLEX options are option contracts that trade on an exchange, but their strike prices and expiration dates can be customized. Sub-advisor Vest Financial buys a set of these options at the start of each Target Outcome Period, which lasts about a year, and holds them to expiration. The prospectus reports portfolio turnover of 0%.
The options are designed to produce a set payoff based on SPY's price return, which leaves out SPY's dividends. For the period from February 24, 2025 to February 20, 2026, the cap on gains was 12.31% (11.46% after fees). Holders bear the first 5% of losses. The options absorb losses between 5% and 30%. If SPY falls more than 30%, the fund loses 25 percentage points less than SPY, up to a maximum loss of about 75%.
Each February the fund rolls into a new set of options. The deep buffer stays the same, but the cap resets based on market conditions and may rise or fall. These outcomes apply only to shares held for a full period. Someone who buys partway through may get a very different cap and buffer, depending on how far SPY and the fund have moved since the start. About a week before each reset, the fund's website posts the expected cap range for the next period.
What it really costs
- DFEB 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 gives up much of the stock market's upside in exchange for protection against S&P 500 losses between 5% and 30% over each yearly outcome period.
DFEB has moved far less than the stock market. As of October 27, 2026, its one-year beta was 0.39 (a measure of how much it moves with the market) and its volatility was 5.1%. Its worst calendar year was 2022, at -5.58%. In the 2022 bear market, it fell 9.5% from March to September 2022 and took about 13.5 months to recover. Losses partway through a period can run deeper than the 5% a full-period holder is designed to bear. Its deepest drop, -14.1%, came just after its February 2020 launch and was recovered by June 8, 2020. It launched too late to show how it would have handled 2008. It pays no distributions, so drawing income would mean selling shares. Its 0.85% expense ratio is close to the 0.86% average of 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 S&P 500 exposure with a deep buffer against losses between 5% and 30%, and can accept a cap on gains each year.
- Holders able to buy near the February reset and hold for the full one-year outcome period, when the stated cap and buffer apply.
- Retirees seeking a low-volatility stock holding; its one-year beta was 0.39 and volatility 5.1% as of October 27, 2026.
Look elsewhere if
- Anyone needing income: the fund has recorded no distributions, and its returns leave out the dividends SPY pays.
- Investors wanting the market's full upside; gains were capped at 12.31% before fees for the period ending February 20, 2026.
- Those who'd rather not time purchases around one reset date; laddered funds like BUFD spread out timing, though BUFD costs 0.95% versus 0.85%.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| DFEB this fund | 0.85% | $445.5M | +10.6% | +15.4% |
| 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 DFEB pay dividends?
No. The fund has recorded no distributions. It holds FLEX options on SPY rather than the stocks themselves, and the prospectus says its performance does not include the dividends SPY pays. Holders give up the S&P 500's dividend income as part of the trade for the buffer. Anyone who needs cash from this holding would have to sell shares.
What is DFEB's cap and buffer?
For the outcome period from February 24, 2025 to February 20, 2026, the cap was 12.31%. The buffer covered SPY losses between -5% and -30%, before fees. After the fund's 0.85% fee, those figures were 11.46% and -5.85% to -30.85%. The buffer stays the same each period, but the cap resets every February based on market conditions. Later periods may have a higher or lower cap.
What's the difference between DFEB and BUFD?
Both are First Trust deep buffer ETFs from the FT Vest lineup. DFEB resets once a year in February. BUFD is a laddered fund, which spreads its timing across several start dates instead of relying on one. BUFD costs 0.95% versus 0.85%. As of August 31, 2026, BUFD had $2.04 billion in net assets versus DFEB's $445.5 million. As of October 27, 2026, DFEB returned 10.6% over one year and 15.4% a year over three years, versus 9.5% and 13.9% for BUFD.
What happens if you buy DFEB in the middle of the outcome period?
Your results can be very different from the stated cap and buffer. Those outcomes apply only to shares bought on the first day of an outcome period and held to the end. If SPY has risen since the start, less upside may be left before the cap. If the fund has fallen, part of the buffer may already be used up. The prospectus says to weigh the fund's value relative to the cap and buffer before investing.
Can you lose money in DFEB?
Yes. Holders who stay for a full period bear the first 5% of SPY losses, plus fees. If SPY falls more than 30%, the fund still loses money, up to a maximum of about 75%. Losses partway through a period can run deeper. The fund's worst quarter was -7.33%, in the quarter ending June 30, 2022, and it lost 5.58% in calendar 2022. It is not insured or guaranteed by any government agency.