At a glance
FDEC charges 0.85% a year, below the 0.86% average of the 7 funds most like it (the 3rd cheapest of 8). It has $1.31B in assets, the 6th largest of that group. Over the past year it returned +12.9% with distributions reinvested (S&P 500: +11.5%), the best of those 8 funds; over three years it returned +18.5% a year. At its worst it fell 15.7% 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 US Equity Buffer ETF – December (FDEC), from First Trust with sub-advisor Vest Financial, holds FLEX options on the SPDR S&P 500 ETF Trust (SPY), not stocks. Over each one-year period starting in December, it aims to absorb the first 10% of SPY's price losses. In return, gains are capped: 14.75% before fees for the period ending December 18, 2026. It costs 0.85% a year, close to the 0.86% buffer-fund average.
Price history
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FDEC +12.9% 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 | |
|---|---|---|---|---|---|---|
| FDEC official prospectus, to Dec 31, 2024 | — | +14.29% | — | — | — | +10.05% |
| FDEC price data to Oct 27, 2026 | +10.2% | +12.9% | +18.5% | +10.6% | — | +11.1% |
- Over the year to Oct 27, 2026, FDEC returned +12.9%, 1st of 8 among similar funds.
- Its 5-year annualized return was +10.6%.
- Its worst full calendar year was 2022 (-9.2%); its best was 2023 (+22.8%).
- The deepest fall in its price history was 15.7% (Jan 4, 2022 to Oct 12, 2022), recovered by Jun 12, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +10.2% | — |
| 2025 | +14.8% | — |
| 2024 | +14.3% | +14.29% |
| 2023 | +22.8% | +22.77% |
| 2022 | -9.2% | -9.54% |
| 2021 | — | +14.48% |
| 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 15.6% over that stretch · deepest drop along the way 15.7%, back to its old high 8 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 $99.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -0.07%, +0.64%, +1.81%.
How it works
FDEC does not pick stocks or follow an index weighting. It puts substantially all its assets into FLEX Options. These are exchange-traded options whose terms, such as strike price and expiration date, can be customized. They reference SPY, which tracks the S&P 500. As of August 31, 2026, 16 option positions made up 99.63% of assets and cash was 0.55%. The largest single position, a call option on SPY, was about 90.8% of assets. Returns follow SPY's price only, so SPY's dividends are not passed on.
The options are set up for a "target outcome period" of about one year. For December 22, 2025 through December 18, 2026, the cap is 14.75% and the buffer covers the first 10% of SPY losses, both before fees. After fees, the prospectus puts them at 13.90% and 9.15%. If SPY falls more than 10%, the fund takes further losses one for one. A 20% SPY drop means roughly a 10% fund loss before fees.
At the end of each period, the fund resets with new options. The buffer stays at 10%, but the cap changes with market conditions. About a week before a period ends, the fund's website posts an expected cap range. These outcomes apply only to shares held for the full period. Shares bought later may have very different upside and protection left.
What it really costs
- FDEC 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 exposure to large US stocks through options that absorb the first 10% of SPY's yearly price losses, giving up some upside in exchange for smaller drops.
FDEC launched in December 2020, so it has no record from the 2008 financial crisis or the 2020 COVID crash. In the 2022 bear market it fell 15.7%, from its January 4 peak to its October 12 low. That was more than the 10% buffer, because the buffer applies only over a full outcome period. It regained that peak by June 12, 2023, about eight months later. Its worst calendar year was 2022, down 9.54% according to the prospectus. Someone who has to sell partway through a period during a slump may get less protection than the headline buffer suggests.
The fund recorded no distributions and does not pass along SPY's dividends, so cash needs would have to be met by selling shares. Its 0.85% expense ratio is 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 wanting S&P 500 exposure with the first 10% of yearly price losses buffered, who accept a cap of 14.75% before fees through December 18, 2026.
- Investors able to invest near the December 22 reset date and hold for the full one-year outcome period, when the stated cap and buffer apply.
- Holders seeking a smoother ride: FDEC's one-year beta was 0.57 and three-year volatility 9.4% as of October 27, 2026, for a 0.85% fee.
Look elsewhere if
- Income seekers: FDEC recorded no distributions, and because it holds options, not stocks, SPY's dividends never reach shareholders.
- Investors who don't want to time a December entry may compare BUFR, a laddered First Trust buffer fund with staggered periods, at 0.95%.
- Investors wanting full upside in strong years: gains above the cap are given up, and losses beyond 10% pass through one for one.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| FDEC this fund | 0.85% | $1.31B | +12.9% | +18.5% |
| 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% |
| 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% |
| FJUL FT Vest U.S. Equity Buffer ETF - July | 0.85% | $1.29B | +11.2% | +18.2% |
Questions investors ask
Does FDEC pay dividends?
No. FDEC recorded no distributions in its price history, which begins February 22, 2021. The fund holds FLEX options on SPY rather than the stocks themselves, and its returns follow SPY's price only. That means the dividends paid by S&P 500 companies are not passed on to shareholders. Over time, that missing dividend is a real cost compared with owning an S&P 500 fund directly. Anyone needing cash from this holding would have to sell shares.
What is the FDEC cap and buffer?
For the outcome period from December 22, 2025 to December 18, 2026, FDEC's cap is 14.75%. Its buffer covers the first 10% of SPY's price losses. Both figures are before fees. After the 0.85% expense ratio, the prospectus puts them at 13.90% and 9.15%. If SPY falls more than 10%, the fund takes the extra loss one for one. The buffer stays at 10% every period, but the cap is reset each December based on market conditions.
What happens if you invest in FDEC mid-year?
The shares trade daily, but the stated cap and buffer apply only to shares bought on the first day of an outcome period and held to the end. If you invest later, your remaining upside and protection depend on how far SPY and the fund have moved since December 22, 2025. After a big gain, little upside may be left before the cap. After a drop, part of the buffer may already be used up. The prospectus warns that results may be very different.
FDEC vs PDEC: what's the difference?
Both are December buffer ETFs on US stocks, from different issuers. FDEC comes from First Trust, with Vest as sub-advisor, and charges 0.85%. Innovator's PDEC charges 0.79%. As of October 27, 2026, FDEC returned 12.9% over one year and 18.5% a year over three years. PDEC returned 11.6% and 14.9%. PDEC is a "Power Buffer" fund, so its buffer and cap terms differ from FDEC's. Compare each fund's terms for the current period.
Did FDEC lose money in 2022?
Yes. FDEC returned -9.54% in calendar 2022, according to the prospectus. That was its only losing calendar year from 2021 through 2024. From its January 4, 2022 peak to its October 12, 2022 low, it fell 15.7%. That is more than the 10% buffer, because the buffer covers a full outcome period, not every drop within it. The fund regained its peak by June 12, 2023, about eight months later. Its worst quarter was -10.66%, ending June 30, 2022.