At a glance
GAUG charges 0.85% a year, below the 0.86% average of the 7 funds most like it (the 3rd cheapest of 8). It has $389.5M in assets, the 8th largest of that group. Over the past year it returned +8.5% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned +13.7% a year.
The short version
FT Vest U.S. Equity Moderate Buffer ETF – August (GAUG) holds FLEX options on the SPDR S&P 500 ETF Trust (SPY). It aims to absorb the first 15% of SPY's price losses over each one-year period that starts in August, and in return it caps gains. For August 18, 2025 to August 21, 2026, the cap was 11.89% before fees. The fund costs 0.85% a year, close to the 0.86% peer average, and has paid no distributions.
Price history
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GAUG +8.5% 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 | |
|---|---|---|---|---|---|---|
| GAUG official prospectus, to Dec 31, 2024 | — | +12.02% | — | — | — | +13.57% |
| GAUG price data to Oct 27, 2026 | +7.8% | +8.5% | +13.7% | — | — | +11.6% |
- Over the year to Oct 27, 2026, GAUG returned +8.5%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+11.3%); its best was 2024 (+11.8%).
- The deepest fall in its price history was 10.1% (Feb 19, 2025 to Apr 8, 2025), recovered by Jun 3, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +7.8% | — |
| 2025 | +11.3% | — |
| 2024 | +11.8% | +12.02% |
| 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 $85.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.44%, +0.84%, +0.77%.
How it works
GAUG does not own stocks directly. It puts substantially all of its assets in FLEX options, which are exchange-traded option contracts with custom terms such as strike price and expiration date. They are linked to SPY, a unit investment trust that holds the stocks in the S&P 500 Index. First Trust runs the fund, and Vest Financial is the sub-advisor. As of August 31, 2026, 12 option positions made up 98.9% of assets and cash was 1.1%. The largest position, a call option on SPY, was about 88% of assets. Returns track SPY's price only, not its dividends.
Each "target outcome period" lasts about a year. If SPY rises, the fund tries to match the gain up to the cap. If SPY falls, the fund absorbs the first 15% of the loss. Losses beyond that pass through one for one, so if SPY drops 20%, the fund drops 5% (before fees). For the period ending August 21, 2026, the cap was 11.89%. After fees, that worked out to an 11.03% cap and a 14.14% buffer. At each reset, the fund buys new options. The cap changes with market conditions, but the buffer stays at 15%.
Timing matters. The cap and buffer are set using prices on the first day of the period. Someone who buys partway through can get very different results. Creations and redemptions may be done in cash, which can make the fund less tax-efficient than ETFs that use only in-kind transfers.
What it really costs
- GAUG 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
Its options give up gains above a yearly cap in exchange for absorbing the first 15% of S&P 500 price losses, which has kept its swings well below the market's.
GAUG may help steady the stock side of a portfolio. As of October 27, 2026, its one-year beta (how much it moves when the market moves) was 0.41, and its three-year volatility was 7.2%. It launched in August 2023, so it has no record from the 2008, 2020 or 2022 downturns. Its deepest drop was 10.1%, from February 19 to April 8, 2025. It regained its old high by June 3, 2025, about 1.8 months later. Even its weakest calendar year, 2025, was a gain of 11.3%. The fund pays no income, so cash for withdrawals would come from selling shares. Someone who sells partway through a period may not get the full buffer. The 0.85% fee and the cap also help explain why it trailed seven similar buffer funds over one and three years. 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 willing to give up S&P 500 gains above a yearly cap (11.89% before fees for the period ended August 21, 2026) for a 15% loss buffer.
- People who can buy near the August reset and hold for the full one-year period, when the cap and buffer work as designed.
- Retirees looking for a lower-swing stock holding: one-year beta of 0.41 and three-year volatility of 7.2% as of October 27, 2026.
Look elsewhere if
- Income seekers: GAUG has paid no distributions, and its returns leave out the dividends SPY pays.
- Investors who want full S&P 500 upside: GAUG ranked last of eight similar buffer funds on one- and three-year returns through October 27, 2026.
- Those who prefer a longer record or a larger fund: it launched in August 2023 and had $389 million in net assets as of August 31, 2026.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| GAUG this fund | 0.85% | $389.5M | +8.5% | +13.7% |
| 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 GAUG pay dividends?
No. GAUG has paid no distributions. It holds options on SPY rather than the stocks themselves, and its returns are based only on SPY's price. That means it leaves out the dividends SPY pays to its own holders. A retiree using GAUG for spending money would need to sell shares. Selling partway through an outcome period can give results quite different from the stated cap and buffer.
What is GAUG's cap and buffer?
The buffer is the first 15% of SPY's price losses, before fees, and it stays the same each period. For August 18, 2025 to August 21, 2026, the cap was 11.89% before fees. After fees, the cap was 11.03% and the buffer was 14.14%. A new cap is set at each reset based on market conditions. About a week before each period ends, the fund's website posts the expected cap range for the next one. If SPY falls more than 15%, the fund loses the rest one for one.
What happens if I buy GAUG in the middle of the outcome period?
The results may differ widely from the stated outcomes. The cap and buffer are fixed using prices on the first day of the period. If SPY has already risen, there may be little room left before the cap, and SPY could fall some way before the buffer starts to help. If SPY has fallen, the picture changes again. The prospectus warns that a mid-period buyer will likely face a different return potential than someone who bought at the start.
GAUG vs BUFR: what's the difference?
Both come from First Trust with Vest as sub-advisor. GAUG resets once a year in August. As its name suggests, BUFR (FT Vest Laddered Buffer ETF) is laddered, which means it spreads money across buffer positions that reset at different times. That makes the purchase date matter less. BUFR costs 0.95% versus GAUG's 0.85%, and it is far larger at $10.5 billion. Through October 27, 2026, BUFR returned 11.6% over one year and 16.8% annualized over three, versus 8.5% and 13.7% for GAUG.
Is GAUG good for retirement?
It can play a defensive role, but there are trade-offs. Its deepest drop was 10.1%, in early 2025, and it recovered in about 1.8 months. It also gained in both 2024 and 2025. But it has no record from a severe bear market such as 2008 or 2022, and it pays no income. The cap limits gains in strong years. It costs 0.85% a year, close to the 0.86% average for similar buffer funds.