At a glance
DHDG charges 0.85% a year, below the 0.86% average of the 7 funds most like it (the 3rd cheapest of 8). It has $75.2M in assets, the 8th largest of that group. Over the past year it returned +12.6% with distributions reinvested (S&P 500: +11.5%), 3rd of those 8 funds.
The short version
First Trust's FT Vest U.S. Equity Quarterly 2.5 to 15 Buffer ETF (DHDG) holds FLEX options (custom exchange-traded options) on the SPDR S&P 500 ETF Trust. Over each full quarter, it aims to shield investors from that ETF's losses between 2.5% and 15% before fees, but caps gains. It costs 0.85% a year, near the peer average, but is the smallest of similar funds, at $75 million as of August 31, 2026.
Price history
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DHDG +12.6% 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 | |
|---|---|---|---|---|---|---|
| DHDG official prospectus, to Dec 31, 2025 | — | +11.43% | — | — | — | +9.83% |
| DHDG price data to Oct 27, 2026 | +11.7% | +12.6% | — | — | — | +11.7% |
- Over the year to Oct 27, 2026, DHDG returned +12.6%, 3rd of 8 among similar funds.
- Its worst full calendar year was 2025 (+11.4%); its best was 2025 (+11.4%).
- The deepest fall in its price history was 8.3% (Feb 19, 2025 to Apr 8, 2025), recovered by May 16, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +11.7% | — |
| 2025 | +11.4% | +11.43% |
| 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 withdrew a net $71.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.47%, +1.18%, +1.57%.
How it works
The fund does not pick stocks. Its sub-advisor, Vest Financial, puts substantially all of the fund's assets in FLEX options. These are exchange-traded option contracts with custom strike prices and expiration dates. They reference SPY, a unit investment trust that holds the stocks in the S&P 500 Index. As of August 31, 2026, options made up about 99% of assets and cash about 1%. The fund tracks SPY's price only, so SPY's dividends do not reach shareholders.
Each Target Outcome Period lasts about three months. At the start of each one, the fund buys a new set of options. If SPY rises, the fund aims to match the gain up to a cap. The cap is reset every quarter based on market conditions. For July 20 to October 16, 2026, it was 4.30% before fees and 4.09% after. If SPY falls, holders bear the first 2.5% of the loss. Losses between 2.5% and 15% are buffered. Any loss beyond 15% passes through, up to a maximum loss of about 87.5%. The buffer stays the same every period.
These results apply only to shares bought on the first day of a period and held to the last day. Someone who buys mid-period may get less buffer or less room before the cap. About a week before each period ends, the fund's website posts the expected cap range for the next one. The fund may create and redeem shares for cash, which can make it less tax-efficient than ETFs that do this in kind.
What it really costs
- DHDG 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 trades some upside and all dividend income for a quarterly cushion against moderate stock-market losses.
DHDG could give some S&P 500 exposure to someone who worries about moderate quarterly drops. In the year to October 27, 2026, it returned 12.6%, with volatility of 6.2% and a beta of 0.45 (it moved less than half as much as the market). Its record is short. It launched on October 18, 2024, so it did not exist during the 2008, 2020 or 2022 downturns. Its deepest drop was 8.3%, from February 19 to April 8, 2025. It recovered by May 16, 2025, about 1.2 months later. Its only full calendar year, 2025, returned 11.43%.
It pays no income, so anyone drawing cash must sell shares. Shares sold mid-quarter may not get the full buffer. Its 0.85% expense ratio is close to the 0.86% average of similar funds. Net assets were $75.2 million as of August 31, 2026, after about $71.8 million of outflows over three months. 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 price exposure with a 12.5% buffer after the first 2.5% of losses, reset every three months.
- Holders willing to track quarterly outcome periods and buy near a period's start, when the full buffer and cap apply.
- People willing to give up dividends and strong rallies above the cap (4.30% before fees for July–October 2026) in exchange for narrower quarterly swings.
Look elsewhere if
- Retirees who need cash income: DHDG recorded no distributions and does not pass through SPY's dividends.
- Investors who prefer large, heavily traded funds: net assets were $75.2 million as of August 31, 2026, the smallest of eight buffer peers.
- Anyone seeking crash protection: quarterly losses beyond 15% pass through, and the fund has no history in 2008, 2020 or 2022.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| DHDG this fund | 0.85% | $75.2M | +12.6% | — |
| 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 DHDG pay dividends?
No. DHDG has recorded no distributions. The fund holds FLEX options on the SPDR S&P 500 ETF Trust, not the stocks themselves, and its prospectus says its performance will not reflect SPY's dividends. Investors who want income from this fund would have to sell shares. That is a real cost compared with owning an S&P 500 fund directly, because dividends make up part of the stock market's long-run total return.
What is the DHDG upside cap?
For the outcome period from July 20 to October 16, 2026, DHDG's cap was 4.30% before fees and 4.09% after fees. The cap is reset at the start of each roughly three-month period based on market conditions, so it will rise or fall over time. About a week before each period ends, the fund's website posts the expected cap range for the next period. The final cap may land outside that range.
How does the DHDG buffer work?
DHDG holders absorb the first 2.5% of SPY's price loss over a quarter. The fund then aims to absorb losses between 2.5% and 15%. So if SPY falls 15% over a full period, the fund aims to lose about 2.5% before fees. Losses beyond 15% pass through, with a maximum loss of about 87.5%. After fees, the buffer range was 2.71% to 15.21%. These results apply only to shares held for the whole period.
DHDG vs FJAN: what's the difference?
Both come from First Trust's FT Vest lineup and charge 0.85% a year. Both use options to buffer S&P 500 losses. DHDG resets its cap every three months and protects losses between 2.5% and 15%. FJAN's outcome period and buffer terms are set in its own prospectus. FJAN is much larger, at $1.47 billion versus DHDG's $75.2 million as of August 31, 2026. One-year returns to October 27, 2026 were close: 12.3% for FJAN and 12.6% for DHDG.
Is DHDG good for retirement?
DHDG may suit retirees who want stock exposure with a cushion against moderate quarterly losses, but it has clear drawbacks. It pays no income, caps gains every quarter and does not protect against quarterly losses beyond 15%. Its deepest drop was 8.3% in early 2025, and it recovered in about 1.2 months. It launched in October 2024, so it has never been through a deep bear market. It costs 0.85% a year.