At a glance
FFEB charges 0.85% a year, below the 0.86% average of the 7 funds most like it (the 3rd cheapest of 8). It has $1.42B in assets, the 5th 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 +18.6% a year. At its worst it fell 13.8% 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 Buffer ETF – February (FFEB) holds FLEX options on the SPDR S&P 500 ETF Trust (SPY), not stocks. Over each one-year period starting in late February, it aims to absorb the first 10% of SPY's price losses and caps gains at a level set when the period begins. It charges 0.85% a year, close to the 0.86% average of similar buffer funds, and pays no dividends.
Price history
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FFEB +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 | |
|---|---|---|---|---|---|---|
| FFEB official prospectus, to Dec 31, 2024 | — | +16.94% | — | — | — | +10.50% |
| FFEB price data to Oct 27, 2026 | +11.3% | +12.9% | +18.6% | +10.8% | — | +11.7% |
- Over the year to Oct 27, 2026, FFEB returned +12.9%, 1st of 8 among similar funds.
- Its 5-year annualized return was +10.8%.
- Its worst full calendar year was 2022 (-7.5%); its best was 2023 (+19.9%).
- The deepest fall in its price history was 22.8% (Feb 24, 2020 to Mar 23, 2020), recovered by Jul 17, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +11.3% | — |
| 2025 | +13.8% | — |
| 2024 | +16.6% | +16.94% |
| 2023 | +19.9% | +19.75% |
| 2022 | -7.5% | -7.70% |
| 2021 | +16.3% | +16.24% |
| 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 13.6% over that stretch · deepest drop along the way 13.8%, 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 added a net $41.4M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -0.08%, +0.61%, +1.71%.
How it works
FFEB does not own the S&P 500 stocks directly. It puts substantially all of its assets into FLEX Options. These are exchange-traded options whose strike prices and expiration dates can be customized. They are tied to SPY, a unit investment trust that holds the stocks in the S&P 500 Index. As of August 31, 2026, 20 option positions made up 99.39% of the fund, with 0.68% in cash. First Trust Advisors runs the fund, and Vest Financial is the sub-advisor.
The options are combined to produce a set outcome over about one year. For February 24, 2025 to February 20, 2026, the fund aimed to match SPY's price gains up to a 14.50% cap and absorb the first 10% of losses. After fees, those figures were 13.65% and 9.15%. If SPY falls more than 10%, the fund takes the rest of the loss one for one. Returns follow SPY's price only, not its dividends.
When a period ends, the fund buys a new set of options. The 10% buffer stays the same, but the cap is reset based on market conditions. About a week before each reset, the fund's website posts the expected cap range. The stated cap and buffer apply only to shares bought on the first day and held to the last. Someone who buys partway through may have more or less upside and protection left.
What it really costs
- FFEB 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 aims to absorb the first 10% of S&P 500 price losses each year, and it gives up upside and dividends in return.
FFEB could soften moderate stock declines while keeping part of the market's gains. In the 2022 bear market, it fell 13.8% from February 9 to October 12, 2022, and recovered by June 2, 2023, about 7.7 months later. Its worst calendar year was 2022, at -7.7%. Its deepest drop came right after launch: 22.8% from February 24 to March 23, 2020, recovered by July 17, 2020. That drop shows the buffer is measured only at the end of each period. Someone who has to sell in the middle of a crash can still take a large loss. The fund pays no income, so withdrawals mean selling shares. Its 0.85% fee is close to the buffer-fund average. 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 10% of yearly price losses absorbed, and who accept a capped upside in return.
- People who can buy near the late-February reset and hold for the full year, which is when the stated cap and buffer apply.
- Investors comparing buffer funds who want a 0.85% fee, below the 0.95% of First Trust's laddered BUFR and BUFD.
Look elsewhere if
- Retirees who need regular income: FFEB has recorded no distributions, and its returns leave out SPY's dividends.
- Investors who want the full upside of the S&P 500 in strong years, since gains above the yearly cap are given up.
- Anyone who may need to sell mid-period: the fund fell 22.8% in early 2020 even though it has a buffer.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| FFEB this fund | 0.85% | $1.42B | +12.9% | +18.6% |
| 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% |
| FJUL FT Vest U.S. Equity Buffer ETF - July | 0.85% | $1.29B | +11.2% | +18.2% |
Questions investors ask
Does FFEB pay dividends?
No. The fund has recorded no distributions. It holds options on SPY, not SPY shares or the stocks themselves, and the prospectus says its performance will not reflect the dividends SPY pays. That means holders give up the S&P 500's dividend income in exchange for the buffer. Retirees who draw cash from FFEB would need to sell shares to do so.
What is the cap on FFEB?
For the period from February 24, 2025 to February 20, 2026, the cap was 14.50% before fees, or 13.65% after fees. The cap is reset at the start of each new yearly period based on market conditions, so it changes from year to year. The 10% buffer stays the same. About a week before each reset, the fund's website posts the expected cap range for the next period.
FFEB vs BUFR: what's the difference?
Both come from First Trust and Vest, but FFEB follows a single February-to-February period. BUFR is a laddered buffer fund. A ladder generally spreads money across several buffer series with different start dates, so where you buy in matters less. BUFR charges 0.95% to FFEB's 0.85%. As of October 27, 2026, FFEB returned 12.9% over one year and 18.6% a year over three years. BUFR returned 11.6% and 16.8%.
Can you lose money in FFEB?
Yes. The buffer covers only the first 10% of SPY's price loss over a full period, and any loss beyond that hits the fund one for one. FFEB lost 7.7% in calendar 2022, and its worst quarter was -10.49%, in the quarter ended June 30, 2022. Its deepest drop was 22.8% in early 2020. The fund's value between reset dates can fall much further than the buffer suggests.
What happens if you buy a buffer ETF in the middle of the outcome period?
Your results may be very different from the stated cap and buffer. Those levels are fixed against prices on the first day of the period. If the fund has already gained, you may have little upside left before the cap. If it has fallen, part of the buffer may already be used up, or you may need further losses before protection starts. For FFEB, the period resets each year in late February.