At a glance
FEBP charges 0.5% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $25.4M in assets, the 8th largest of that group. Over the past year it returned +11.9% with distributions reinvested (S&P 500: +11.5%), 4th of those 8 funds.
The short version
PGIM S&P 500 Buffer 12 ETF - February (FEBP) is an actively managed Prudential ETF that holds options on SPY, the State Street SPDR S&P 500 ETF Trust, instead of stocks. Over each February-to-January period, it aims to absorb the first 12% of SPY's price losses while capping gains, at 14.15% before fees through January 31, 2027. Its 0.50% yearly cost undercuts seven larger buffer funds averaging 0.86%, but it pays no dividends.
Price history
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FEBP +11.9% 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 | |
|---|---|---|---|---|---|---|
| FEBP official prospectus, to Dec 31, 2025 | — | +11.97% | — | — | — | +13.41% |
| FEBP price data to Oct 27, 2026 | +10.1% | +11.9% | — | — | — | +12.8% |
- Over the year to Oct 27, 2026, FEBP returned +11.9%, 4th of 8 among similar funds.
- Its worst full calendar year was 2025 (+12.1%); its best was 2025 (+12.1%).
- The deepest fall in its price history was 12.1% (Feb 19, 2025 to Apr 8, 2025), recovered by Jun 24, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +10.1% | — |
| 2025 | +12.1% | +11.97% |
| 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 Jul 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 Jul 31, 2026, investors added a net $4.1M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.48%, -0.07%, +0.62%.
How it works
FEBP is actively managed but picks no stocks. It invests substantially all its assets in FLEX options on SPY, the State Street SPDR S&P 500 ETF Trust. FLEX options are exchange-traded contracts whose expiration date and strike price (the price that triggers a payoff) can be customized. SPY holds the S&P 500's stocks. As of July 31, 2026, options made up about 99.3% of assets and cash 0.73%. Its returns exclude SPY's dividends.
The options cover a one-year “target outcome period”: February 1, 2026, through January 31, 2027. For shares held that whole period, the fund aims to match SPY's price gain up to a cap of 14.15% before fees, or 13.65% after the 0.50% management fee. If SPY falls, it aims to absorb the first 12% of the drop, called the buffer (11.5% after the fee). Deeper losses pass through one for one: a 25% SPY decline would mean roughly a 13% loss before fees.
Each new period starts with fresh options. The 12% buffer stays the same, but the cap is reset based on market conditions and will likely change. Because the options can be exercised only on the final day, investors entering or exiting midway may get results very different from the stated buffer and cap. There is no principal protection.
What it really costs
- FEBP charges 0.5% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $51 in the first year and $628 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| FEBP | $51 | $160 | $280 | $628 |
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 keeps S&P 500 price exposure but aims to absorb the first 12% of losses each outcome period, giving up gains above a cap and all dividends.
FEBP could add S&P 500 exposure with a cushion against moderate losses. Launched January 31, 2024, it has no record from the 2008, 2020 or 2022 downturns. Its only full calendar year, 2025, returned 11.97%. Its deepest drop, 12.1% from February 19 to April 8, 2025, was recovered by June 24, 2025, 2.5 months later. This shows the buffer is measured over the February-to-January period, not day to day; anyone who needed cash near the low would have taken the loss.
It pays no dividends and forgoes SPY's, so income would have to come from cashing out shares. Its 0.50% cost, below the 0.86% average of similar buffer funds, comes to $51 in the first year and $628 over 10 years on $10,000 in the SEC's standard example. 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 a cushion against the first 12% of SPY's price losses over each February-to-January period.
- Cost-conscious investors: its 0.50% yearly cost is the lowest of eight buffer funds compared, versus a 0.86% average for the other seven.
- Patient holders who can stay in from February 1 through January 31, the only window where the stated buffer and cap fully apply.
Look elsewhere if
- Income seekers: the fund has made no distributions, and its returns exclude dividends paid by SPY and S&P 500 companies.
- Investors wanting full S&P 500 gains: upside is capped at 14.15% before fees through January 31, 2027, and the cap resets each period.
- Those wanting deep-crash protection: losses beyond 12% pass through one for one, so a 25% SPY drop means roughly a 13% loss before fees.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| FEBP this fund | 0.5% | $25.4M | +11.9% | — |
| 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
What are FEBP's cap and buffer?
FEBP's cap, the most it can gain, is 14.15%, and its buffer absorbs the first 12% of SPY's price losses, both before fees, for the outcome period from February 1, 2026, to January 31, 2027. After the 0.50% management fee, the prospectus puts them at 13.65% and 11.5%. Both apply only to shares held for the whole period. The 12% buffer stays the same each period, but the cap is reset at each start based on market conditions.
Does FEBP pay dividends?
No. FEBP has recorded no distributions, and its returns do not include the dividends paid by SPY or the companies in the S&P 500, because it holds options on SPY rather than shares. Over time, missing those dividends can leave it behind an S&P 500 index fund that reinvests them. Retirees who need regular income from it would have to cash out shares instead.
What's the difference between FEBP and FFEB?
FEBP costs much less but is far smaller. It charges 0.50% a year, compared with 0.85% for FT Vest U.S. Equity Buffer Fund - February (FFEB); both are U.S. stock buffer funds tied to February outcome periods. FFEB had about $1.42 billion in net assets as of August 31, 2026, versus about $25.4 million for FEBP as of July 31, 2026. In the year to October 27, 2026, FFEB returned 12.9% and FEBP 11.9%. Their buffer and cap terms are worth comparing side by side.
Can you lose money in a buffer ETF like FEBP?
Yes. The buffer covers only the first 12% of SPY's price losses, before fees, over a full outcome period; losses beyond that pass through one for one, so a 25% SPY drop would mean about a 13% fund loss before fees. Shares can also fall mid-period: FEBP dropped 12.1% between February 19 and April 8, 2025, before recovering by June 24, 2025. The prospectus says the fund does not provide principal protection.
Is FEBP a good investment for retirees?
It may suit retirees who want S&P 500 exposure with a cushion against moderate yearly losses and who accept capped gains and no income. Its 0.50% yearly cost is the lowest of eight buffer funds compared; in the SEC's standard example, that is $51 in the first year on $10,000. Drawbacks include no dividends, a record only since January 31, 2024, net assets of about $25.4 million as of July 31, 2026, and outcomes that depend on holding from February 1 through January 31.