At a glance
FHDG charges 0.85% a year, below the 0.86% average of the 7 funds most like it (the 3rd cheapest of 8). It has $71.4M in assets, the 8th largest of that group. Over the past year it returned +12.2% with distributions reinvested (S&P 500: +11.5%), 4th of those 8 funds.
The short version
FT Vest U.S. Equity Quarterly Dynamic Buffer ETF (FHDG), from First Trust, holds FLEX options on the State Street SPDR S&P 500 ETF Trust (SPY). It aims to match SPY's price return up to a cap while absorbing the first 5% or 7.5% of losses. It resets about every three months, so each cap is small: 3.89% before fees for the August 24 to November 20, 2026 period. It charges 0.85% a year and pays no dividends.
Price history
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FHDG +12.2% 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 | |
|---|---|---|---|---|---|---|
| FHDG official prospectus, to Dec 31, 2025 | — | +10.46% | — | — | — | +10.00% |
| FHDG price data to Oct 27, 2026 | +10.3% | +12.2% | — | — | — | +11.1% |
- Over the year to Oct 27, 2026, FHDG returned +12.2%, 4th of 8 among similar funds.
- Its worst full calendar year was 2025 (+10.6%); its best was 2025 (+10.6%).
- The deepest fall in its price history was 14% (Feb 19, 2025 to Apr 8, 2025), recovered by Jul 28, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +10.3% | — |
| 2025 | +10.6% | +10.46% |
| 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 added a net $4.4M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.03%, +0.22%, +2.09%.
How it works
First Trust runs FHDG, with Vest Financial as sub-advisor. The fund does not own stocks. It puts substantially all its assets into FLEX options on SPY. FLEX options are exchange-traded contracts with custom strike prices and expiration dates. SPY itself holds the stocks in the S&P 500 index. As of August 31, 2026, four SPY option positions made up about 98.9% of the fund's $71.4 million in net assets, and cash was about 1.1%. Because the fund holds options and not SPY shares, its returns leave out SPY's dividends.
The fund runs in outcome periods of about three months. At the start of each one, it buys a new set of options that sets a cap on gains and a buffer against losses. If a 7.5% buffer still allows a cap of at least 3.5%, it takes the 7.5% buffer. If not, it drops to a 5% buffer and takes the highest cap available. For August 24 to November 20, 2026, the buffer is 7.50% and the cap is 3.89% before fees, or 7.29% and 3.68% after fees. Any losses beyond the buffer pass through one for one. The fund announces the expected range about a week before each period starts.
These outcomes apply only to shares held for a full period. Shares bought partway through may get a very different cap and buffer. The buffer is not guaranteed. The fund may also create and redeem shares for cash, which can make it less tax-efficient than ETFs that do this in kind.
What it really costs
- FHDG 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
FHDG trades away most of the stock market's upside for a buffer against the first 5% or 7.5% of SPY's losses in each three-month period.
FHDG may work as a cushioned way to hold U.S. large-company stocks. Over the year to October 27, 2026, its volatility (how much its price swings) was 6.2%. Its beta, a measure of how closely it moves with the market, was 0.46. Its record is short. It launched November 15, 2024, so it was not around for 2008, 2020 or 2022. Its only full calendar year, 2025, returned 10.46%, according to the prospectus. Its deepest drop was 14%, from February 19 to April 8, 2025, and it recovered about 3.6 months later, on July 28, 2025. That drop shows the buffer only holds at the end of a period, so someone who has to sell partway through a slide can still lose money. The fund pays no income, so withdrawals mean selling shares. Its 0.85% fee is close to the 0.86% average for similar funds. 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 5% or 7.5% loss buffer that resets every three months, and who accept small caps.
- People who can buy near the start of each three-month outcome period and hold to its end, so they get the stated cap and buffer.
- Investors willing to pay 0.85% a year, near the 0.86% average for similar buffer ETFs, for smoother returns: 6.2% volatility through October 27, 2026.
Look elsewhere if
- Anyone who needs income: FHDG has recorded no distributions, and its options-based returns leave out SPY's dividends.
- Investors who want the full upside of stocks: the cap was 3.89% before fees for the period ending November 20, 2026.
- Investors who prefer a longer record or a larger fund: FHDG launched November 2024 and was the smallest of eight buffer ETFs compared, at $71.4 million.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| FHDG this fund | 0.85% | $71.4M | +12.2% | — |
| 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 FHDG pay dividends?
No. FHDG has recorded no distributions. The fund holds FLEX options on SPY, not SPY shares, and the prospectus says its performance does not include the dividends SPY pays. Returns come only from SPY's price changes, limited by each period's cap and buffer. Anyone who wants regular cash payouts would need to sell shares or look at funds that pay income.
How does the FHDG quarterly buffer work?
Every three months or so, FHDG buys new options that set a cap and a buffer. If a cap of at least 3.5% is possible with a 7.5% buffer, it takes the 7.5% buffer. If not, it uses a 5% buffer with the highest cap available. For August 24 to November 20, 2026, the buffer was 7.50% and the cap 3.89% before fees, or 7.29% and 3.68% after fees. Losses beyond the buffer are taken in full.
What's the difference between FHDG and BUFR?
Both are First Trust buffer ETFs with Vest as sub-advisor, but BUFR uses a laddered approach, while FHDG resets its own options every three months. BUFR charges 0.95% a year and FHDG charges 0.85%. As of August 31, 2026, BUFR had about $10.5 billion in net assets and FHDG had $71.4 million. One-year price returns through October 27, 2026 were 11.6% for BUFR and 12.2% for FHDG. BUFR also has a three-year record, at 16.8%.
Is FHDG good for retirement?
It depends on the role it plays in the portfolio. FHDG may suit retirees who want stock exposure with a cushion against the first 5% or 7.5% of SPY's losses each period. It pays no income, though, and it caps gains at a few percent every three months. Its 2025 return was 10.46%. Launched in November 2024, it has not yet been through a long bear market.
Can you lose money in FHDG?
Yes. Losses beyond the buffer pass through one for one, and the prospectus warns that a shareholder could lose their entire investment. Shares bought or sold partway through a period may not get the full buffer. FHDG fell 14% from February 19 to April 8, 2025, then recovered by July 28, 2025. Its worst calendar quarter, ending March 31, 2025, was a 2.08% loss.