At a glance
FEBM charges 0.85% a year, below the 0.86% average of the 7 funds most like it (the 3rd cheapest of 8). It has $45.9M in assets, the 8th largest of that group. Over the past year it returned +5.9% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds.
The short version
FT Vest US Equity Max Buffer ETF-February (FEBM), from First Trust, holds FLEX options on the SPDR S&P 500 ETF Trust (SPY) instead of stocks. For February 23, 2026 to February 19, 2027, it seeks to absorb the first 47.28% of SPY's price loss, with gains capped at 7.00%, both before fees. That is a much deeper buffer and a much tighter cap than most buffer funds, and it costs 0.85% a year.
Price history
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FEBM +5.9% 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 | |
|---|---|---|---|---|---|---|
| FEBM price data to Oct 27, 2026 | +4.8% | +5.9% | — | — | — | +6.2% |
- Over the year to Oct 27, 2026, FEBM returned +5.9%, 8th of 8 among similar funds.
- The deepest fall in its price history was 2.6% (Feb 24, 2025 to Apr 7, 2025), recovered by May 15, 2025.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +4.8% |
| 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 $2.4M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.06%, +0.51%, +0.76%.
How it works
FEBM doesn't pick stocks or follow a weighted index. Instead, 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 are tied to SPY, an exchange-traded unit investment trust that holds as many S&P 500 stocks as practicable. As of August 31, 2026, 18 option positions made up 99.34% of assets and cash made up 0.73%. Vest Financial is the sub-advisor.
Each Target Outcome Period lasts about one year, and the fund buys a new set of options when each one starts. Its rule is to seek the largest buffer it can while keeping a cap of at least 7%. If it can buffer 100% of losses, it seeks a cap above 7%. If a 7% cap would leave a buffer below 20%, it lowers the cap. For February 23, 2026 to February 19, 2027, the buffer is 47.28% and the cap is 7.00%. After fees, those become 46.43% and 6.15%. Any SPY loss beyond the buffer passes through one-for-one.
These outcomes apply only to shares bought on the first day of the period and held to the end. Someone who buys mid-period gets a different effective cap and buffer. The fund tracks SPY's price only, so it misses the dividends paid by S&P 500 companies.
What it really costs
- FEBM 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 away nearly all upside beyond a 7.00% cap in exchange for a buffer against roughly the first half of a one-year SPY loss.
FEBM could hold stock exposure that someone may need to spend soon. Its record is short. It launched February 21, 2025, so it missed the 2008, 2020 and 2022 downturns and has no full calendar year of returns. Its deepest drop was 2.6%, from February 24 to April 7, 2025. It recovered by May 15, 2025, about 1.2 months later. One-year beta was 0.14, meaning it moved far less than the market. Still, losses beyond the 47.28% buffer pass through, and anyone who sells mid-period may not get the full buffer. It has made no distributions, so drawing income means selling shares. The fee is 0.85%, against a 0.86% average for similar funds, and it uses up a large part of a 7.00% cap. Past results don't predict future ones, 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 the first 47.28% of a one-year SPY drop buffered, and accept gains capped at 7.00% before fees.
- People setting aside money for spending in a year or two who can buy near the February reset and hold through February 19, 2027.
- Investors comfortable owning only options: 18 FLEX option positions on SPY and no stocks, as of August 31, 2026.
Look elsewhere if
- Anyone seeking income: FEBM has made no distributions, and its returns leave out SPY's dividends.
- Growth-focused investors: its 5.9% one-year return as of October 27, 2026 trailed FFEB's 12.9% and every other similar fund listed.
- Those who want a large, actively traded fund: with $45.9 million in net assets as of August 31, 2026, it was the smallest of eight peers.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| FEBM this fund | 0.85% | $45.9M | +5.9% | — |
| 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
Is FEBM good for retirement?
It can play a defensive role, but it isn't built for growth or income. For February 23, 2026 to February 19, 2027, it seeks to buffer the first 47.28% of SPY losses while capping gains at 7.00%, both before fees. Its deepest drop since its February 2025 launch was 2.6%. It has made no distributions, charges 0.85% a year, and hasn't yet been tested in a severe bear market like 2008 or 2022.
What's the difference between FEBM and FFEB?
Both are First Trust funds sub-advised by Vest, reset each February and charge 0.85%. FEBM is the "max buffer" version. It seeks the largest buffer possible while keeping a cap of at least 7%, which gives it far less upside. As of October 27, 2026, FFEB returned 12.9% over one year, compared with 5.9% for FEBM. FFEB is also much larger, with $1.42 billion in net assets versus $45.9 million as of August 31, 2026.
Does FEBM pay dividends?
No. The fund has made no distributions. It holds FLEX options on SPY rather than the stocks themselves, and its returns are based on SPY's price only. That means it does not capture the dividends paid by S&P 500 companies. Investors who need cash flow from FEBM would have to sell shares. That matters most in a down market, especially if the shares were bought mid-period.
What happens if I buy FEBM in the middle of the outcome period?
You won't get the stated 47.28% buffer and 7.00% cap. Those apply only to shares bought on February 23, 2026 and held until February 19, 2027. If SPY has already risen, more of the cap may be used up and the buffer may not kick in until after a further fall. If SPY has fallen, part of the buffer may already be used. The fund's remaining cap and buffer are worth checking before buying.
Can you lose money in FEBM?
Yes. If SPY falls more than 47.28% over the period, the fund takes every further loss one-for-one, before fees. After fees, the buffer is 46.43%. The prospectus warns there is no guarantee the buffer will work, and that a shareholder could lose their entire investment. Other risks include counterparty failure, option pricing before expiration, and buying or selling partway through a period.