At a glance
FAUG charges 0.85% a year, below the 0.86% average of the 7 funds most like it (the 3rd cheapest of 8). It has $1.29B in assets, the 7th largest of that group. Over the past year it returned +10.2% with distributions reinvested (S&P 500: +11.5%), 7th of those 8 funds; over three years it returned +16.8% a year. At its worst it fell 22.3% in the 2020 crash (S&P 500: 33.7%) and 15.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 9 months after the lows.
The short version
FT Vest U.S. Equity Buffer ETF – August (FAUG) holds FLEX options on the SPDR S&P 500 ETF Trust (SPY), not stocks. Over each roughly one-year period starting in August, it aims to absorb the first 10% of SPY's price losses in exchange for a cap on gains. That cap was 14.29% before fees for the period ending August 21, 2026. The fund charges 0.85% a year and pays no dividends.
Price history
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FAUG +10.2% 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 | |
|---|---|---|---|---|---|---|
| FAUG official prospectus, to Dec 31, 2024 | — | +14.97% | — | +8.54% | — | +8.86% |
| FAUG price data to Oct 27, 2026 | +9.6% | +10.2% | +16.8% | +8.9% | — | +9.8% |
- Over the year to Oct 27, 2026, FAUG returned +10.2%, 7th of 8 among similar funds.
- Its 5-year annualized return was +8.9%.
- In the 2020 COVID crash it fell 22.3% and regained its old high 3.9 months after the low.
- Its worst full calendar year was 2022 (-10.5%); its best was 2023 (+17.2%).
- The deepest fall in its price history was 22.3% (Feb 12, 2020 to Mar 23, 2020), recovered by Jul 20, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +9.6% | — |
| 2025 | +13.8% | — |
| 2024 | +14.6% | +14.97% |
| 2023 | +17.2% | +16.76% |
| 2022 | -10.5% | -10.54% |
| 2021 | +11.5% | +11.75% |
| 2020 | +12.4% | +12.25% |
| 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 22.3% over that stretch · deepest drop along the way 22.3%, back to its old high 3.9 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 15.9% over that stretch · deepest drop along the way 15.9%, back to its old high 9 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 $85.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.37%, +0.99%, +1.17%.
How it works
FAUG doesn't pick stocks. Substantially all of its money goes into FLEX options, which are exchange-traded option contracts with custom strike prices and expiration dates. All of them are tied to the price of SPY, which tracks the S&P 500. First Trust Advisors runs the fund, and Vest Financial LLC is the sub-advisor. As of August 31, 2026, 12 option positions made up about 98.9% of assets and cash was about 1.2%. One SPY call option alone was about 93.9%.
The options are set up for a "target outcome period" of about one year. For the period from August 18, 2025 through August 21, 2026, the upside cap was 14.29% and the buffer covered the first 10% of SPY losses, both before fees. After fees, those figures were 13.43% and 9.14%. Losses beyond 10% pass through one-for-one: if SPY falls 20%, the fund falls about 10%. Returns track SPY's price only, so SPY's dividends are left out. At the end of each period the fund buys a new set of options. The buffer stays at 10%, but the cap is reset based on market conditions at the time.
These outcomes apply only to shares bought on the first day of a period and held until it ends. If you buy or sell partway through, your results may be very different, and the shares may move less than SPY does in the meantime.
What it really costs
- FAUG 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 stock-market upside for a partial cushion against losses over each one-year outcome period.
FAUG launched in November 2019, so it has no record from the 2008 crisis. In the 2020 COVID crash it fell 22.3% from February 2020 to March 23, 2020, more than twice the 10% buffer, because the buffer applies only at the end of an outcome period. It recovered by July 20, 2020, about four months later. In 2022 it fell 15.9% from January 3 to October 12 and took about nine months to recover, by July 13, 2023. Its worst calendar year was 2022, at -10.54%. So someone who has to sell in the middle of a slump may get less protection than the headline buffer suggests. The fund pays no distributions, so any income has to come from selling shares. It costs 0.85% a year, close to the 0.86% average for 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 price exposure with a 10% loss buffer each August-to-August period, and who accept capped gains in return.
- Buyers who can buy near the start of an outcome period and hold the full year, which is when the stated cap and buffer apply.
- People who want a smoother ride: one-year volatility was 6.9% and beta 0.52 as of October 27, 2026.
Look elsewhere if
- Income seekers: the fund has made no distributions, and its returns leave out SPY's dividends.
- Investors who need protection in deep crashes: losses beyond 10% pass through one-for-one, and the fund fell 22.3% in early 2020.
- Cost-focused buyers: at 0.85% it costs more than Innovator's PJAN and PDEC (0.79%), and plain S&P 500 funds keep uncapped gains.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| FAUG this fund | 0.85% | $1.29B | +10.2% | +16.8% |
| 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 FAUG pay dividends?
No. FAUG has made no distributions. It holds FLEX options on the SPDR S&P 500 ETF Trust (SPY) rather than SPY shares, and its target returns are based only on SPY's price. That means you give up the dividends SPY pays, which is a real cost compared with owning an S&P 500 fund directly. Anyone who wants regular income from this fund would have to sell shares.
How does the FAUG buffer work?
FAUG aims to absorb the first 10% of SPY's price losses over a one-year outcome period, before fees. For the period from August 18, 2025 to August 21, 2026, the buffer was 9.14% after fees, and gains were capped at 14.29% before fees (13.43% after). If SPY falls more than 10%, the fund takes the extra losses one-for-one. If SPY falls 20%, for example, the fund falls about 10%. A new cap is set each August, but the buffer stays at 10%.
What's the difference between FAUG and BUFR?
Both come from First Trust and Vest. FAUG resets once a year in August. BUFR, the FT Vest Laddered Buffer ETF, spreads its money across buffer strategies that reset at different times, so where you are in one period matters less. BUFR costs 0.95% against FAUG's 0.85%. As of October 27, 2026, BUFR returned 11.6% over one year versus FAUG's 10.2%. Both returned 16.8% a year over three years. BUFR is much larger, at about $10.5 billion versus $1.29 billion as of August 31, 2026.
What happens if I buy FAUG in the middle of the outcome period?
Your results may be very different from the stated cap and buffer. Those levels are fixed against SPY's price and the fund's value on the first day of each period. If you buy after SPY has risen, you may have less room left before the cap, and the buffer may be partly used up or farther away. The prospectus says shares generally move in the same direction as SPY during a period, but not always by the same amount.
How did FAUG do in 2022?
FAUG lost 10.54% in calendar year 2022, according to its prospectus, which makes 2022 its worst year since it launched in 2019. Measured from the January 3, 2022 high to the October 12, 2022 low, it fell 15.9%. It didn't get back to its old high until July 13, 2023, about nine months after the low. That shows the buffer softened the 2022 decline but didn't prevent losses.