At a glance
DSEP charges 0.85% a year, below the 0.86% average of the 7 funds most like it (the 3rd cheapest of 8). It has $355.6M in assets, the 8th largest of that group. Over the past year it returned +10.0% with distributions reinvested (S&P 500: +11.5%), 7th of those 8 funds; over three years it returned +13.8% a year. At its worst it fell 11.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months after the low.
The short version
FT Vest U.S. Equity Deep Buffer ETF – September (DSEP) holds FLEX options on the SPDR S&P 500 ETF Trust (SPY), not stocks. It aims to match SPY's price return up to a cap and to absorb SPY losses between -5% and -30% over each outcome period of about one year, which resets each September. Its 0.85% expense ratio is close to the 0.86% average of similar buffer funds. It pays no dividends and caps gains.
Price history
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DSEP +10.0% 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 | |
|---|---|---|---|---|---|---|
| DSEP official prospectus, to Dec 31, 2024 | — | +11.32% | — | — | — | +7.53% |
| DSEP price data to Oct 27, 2026 | +9.5% | +10.0% | +13.8% | +8.5% | — | +8.3% |
- Over the year to Oct 27, 2026, DSEP returned +10.0%, 7th of 8 among similar funds.
- Its 5-year annualized return was +8.5%.
- Its worst full calendar year was 2022 (-7.5%); its best was 2023 (+18.9%).
- The deepest fall in its price history was 11.8% (Jan 4, 2022 to Oct 12, 2022), recovered by Jun 2, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +9.5% | — |
| 2025 | +10.8% | — |
| 2024 | +11.3% | +11.32% |
| 2023 | +18.9% | +19.13% |
| 2022 | -7.5% | -7.60% |
| 2021 | — | +6.45% |
| 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 11.7% over that stretch · deepest drop along the way 11.8%, back to its old high 7.7 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 $3.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.23%, +0.78%, +1.46%.
How it works
DSEP does not own the S&P 500 stocks. It puts substantially all its assets into FLEX options. These are exchange-traded option contracts whose strike prices and expiration dates can be customized. The options reference SPY, a fund that tracks the S&P 500. First Trust is the issuer, and sub-advisor Vest Financial manages the strategy. As of August 31, 2026, 12 option positions made up 99.74% of assets and cash made up 0.33%. The fund follows SPY's price only, so holders do not get the dividends paid by the S&P 500 companies.
The options are set for an outcome period of about one year. For the period from September 22, 2025 to September 18, 2026, the fund aimed to match SPY's gains up to a cap of 11.43%, or 10.58% after fees. Holders take the first 5% of any SPY loss. The fund then buffers losses between -5% and -30%. If SPY falls more than 30%, the fund's loss is 25 percentage points smaller than SPY's, with a maximum loss of about 75%.
Each September the fund buys new options. The buffer stays the same, but the cap changes with market conditions. These outcomes apply only to shares bought on the first day of a period and held to the end. Shares bought or sold partway through can get very different results.
What it really costs
- DSEP 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 offers S&P 500 price exposure with options that absorb SPY losses between 5% and 30% over each yearly period, in exchange for capped gains.
DSEP launched in 2020, after the 2008 and 2020 crashes, so the 2022 bear market is its only major test. It fell 11.8% from January 4 to October 12, 2022, and recovered by June 2, 2023, about 7.7 months later. That was a deeper drop than the buffer suggests, because the buffer applies fully only at the end of an outcome period. Its 2022 calendar-year return was -7.6%. Someone who had to sell shares partway through a bad stretch might not get the full protection.
The fund has recorded no distributions, so any cash must come from selling shares. Its 0.85% expense ratio is close to the 0.86% average of similar buffer funds but well above what a plain S&P 500 index fund usually charges. 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 and will give up some upside for a cushion against SPY losses between 5% and 30%.
- Holders who can buy near the September reset and keep their shares for the full outcome period, when the cap and buffer work as designed.
- People who prefer smaller swings: one-year volatility was 5.8% and beta was 0.43 as of October 27, 2026.
Look elsewhere if
- Income seekers: DSEP has recorded no distributions, and its returns leave out the dividends paid by the S&P 500 companies.
- Investors who want full stock-market gains: its three-year return ranked 8th of 8 similar buffer funds as of October 27, 2026.
- Buyers who don't want to time a September reset may compare it with laddered funds such as BUFD, which costs 0.95%.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| DSEP this fund | 0.85% | $355.6M | +10.0% | +13.8% |
| 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 DSEP pay dividends?
No. DSEP has recorded no distributions. The fund holds FLEX options on SPY rather than the stocks themselves, so it receives no dividends to pass on. Its returns track SPY's price only, which means holders give up the dividend part of the S&P 500's total return. Anyone who wants cash from the fund has to sell shares. The expense ratio is 0.85%, according to the prospectus filed December 29, 2025.
What is the cap on DSEP?
The cap changes every year. For the outcome period from September 22, 2025 to September 18, 2026, it was 11.43% before fees and 10.58% after fees. On the first day of each new period, the fund buys new options and sets a new cap based on market conditions. About one week before a period ends, the fund's website posts the expected cap range for the next one. The final cap may fall outside that range. The buffer stays the same each period.
Can you lose money in DSEP?
Yes. Holders take the first 5% of SPY's losses in each outcome period. If SPY falls more than 30%, the fund's loss is 25 percentage points smaller than SPY's, with a maximum loss of about 75%. The buffer works as designed only at the end of a period. During 2022, DSEP fell 11.8% from its January 4 peak to its October 12 low. It recovered by June 2, 2023.
DSEP vs BUFD: what's the difference?
Both are First Trust deep buffer funds managed with Vest Financial. DSEP uses one set of options that resets every September. BUFD, the FT Vest Laddered Deep Buffer ETF, spreads its money across several buffer periods. DSEP's expense ratio is 0.85% and BUFD's is 0.95%. BUFD is much larger, with $2.04 billion in net assets against DSEP's $355.6 million as of August 31, 2026. As of October 27, 2026, their returns were similar: 10% versus 9.5% over one year, and 13.8% versus 13.9% a year over three years.
How has DSEP performed?
According to the prospectus, DSEP returned 6.45% in 2021, -7.6% in 2022, 19.13% in 2023 and 11.32% in 2024. Its average annual return from inception through December 31, 2024 was 7.53%. Based on share prices, it returned 10.75% in 2025. Its five-year return was 8.5% a year as of October 27, 2026. Because of the cap, it trailed standard buffer funds such as FDEC and FJAN over three years.