At a glance
GDEC charges 0.85% a year, below the 0.86% average of the 7 funds most like it (the 3rd cheapest of 8). It has $427.8M in assets, the 8th largest of that group. Over the past year it returned +10.7% with distributions reinvested (S&P 500: +11.5%), 6th of those 8 funds.
The short version
FT Vest U.S. Equity Moderate Buffer ETF – December (GDEC) holds FLEX options on the SPDR S&P 500 ETF Trust (SPY) rather than stocks. It aims to absorb the first 15% of SPY's price losses over a one-year period that resets each December. In exchange, gains are capped: 12.08% before fees for the period ending December 18, 2026. Holders give up SPY's dividends, and the 0.85% fee is close to the 0.86% average for similar buffer funds.
Price history
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GDEC +10.7% 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 | |
|---|---|---|---|---|---|---|
| GDEC official prospectus, to Dec 31, 2024 | — | +11.61% | — | — | — | — |
| GDEC price data to Oct 27, 2026 | +8.7% | +10.7% | — | — | — | +11.5% |
- Over the year to Oct 27, 2026, GDEC returned +10.7%, 6th of 8 among similar funds.
- Its worst full calendar year was 2024 (+11.4%); its best was 2025 (+12.1%).
- The deepest fall in its price history was 10.6% (Feb 19, 2025 to Apr 8, 2025), recovered by Jun 10, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +8.7% | — |
| 2025 | +12.1% | — |
| 2024 | +11.4% | +11.34% |
| 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 $18.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.08%, +0.63%, +1.42%.
How it works
GDEC does not own stocks or follow an index of its own. First Trust Advisors runs the fund, with Vest Financial as sub-adviser. The fund puts substantially all of its assets into FLEX options on the SPDR S&P 500 ETF Trust (SPY). FLEX options trade on an exchange, but they let the fund customize terms such as the strike price and the expiration date. SPY is a unit investment trust that holds the stocks in the S&P 500 Index. As of August 31, 2026, 18 option positions made up 99.51% of net assets and cash was 0.56%.
The options are bought as a package for a roughly one-year "target outcome period," which ran from December 22, 2025, to December 18, 2026. Over that period the fund aims to absorb the first 15% of any fall in SPY's price and to match SPY's gains up to a 12.08% cap. After fees, the buffer is 14.15% and the cap is 11.24%. If SPY fell 20%, the fund would aim to lose about 5% before fees. At the end of each period the fund buys a new set of options. The 15% buffer stays the same, but the cap is reset based on market conditions at the time.
These targets apply only to shares held for a full period. Buying or selling partway through can produce very different results. Returns follow SPY's price only, not its dividends.
What it really costs
- GDEC 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 some of the S&P 500's upside for a buffer against the first 15% of losses over each one-year period.
GDEC could soften stock market drops for someone who wants S&P 500 exposure but worries about a bad year close to or during retirement. Its record is short. It launched December 15, 2023, so it has no history through the 2008, 2020 or 2022 sell-offs. It has not had a losing calendar year so far. It returned 11.34% in 2024 (prospectus figure) and 12.14% in 2025 based on price. Its deepest drop was 10.6%, from February 19 to April 8, 2025. It recovered by June 10, 2025, about two months later.
That drop shows the buffer applies in full only at the end of an outcome period, so someone who sells partway through gets the market price at that moment. The fund recorded no distributions, so drawing money from it means selling shares. It costs 0.85% a year. 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 who want S&P 500 exposure with a buffer on the first 15% of SPY's price losses and who accept a cap (12.08% before fees through December 2026).
- Holders who can buy near the December reset and keep their shares for the full one-year period, when the buffer and cap apply as designed.
- People who prefer smaller swings: as of October 27, 2026, one-year volatility was 5.8% and beta was 0.42.
Look elsewhere if
- Income seekers: the fund recorded no distributions, and its returns leave out the dividends SPY pays.
- Investors who want the full upside of strong markets: gains above the cap are given up, and the cap resets each December.
- Cost-focused buyers: at 0.85%, it costs more than Innovator's December and January Power Buffer ETFs (PDEC, PJAN), which charge 0.79%.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| GDEC this fund | 0.85% | $427.8M | +10.7% | — |
| 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 GDEC pay dividends?
No. The fund has recorded no distributions. It holds FLEX options on the SPDR S&P 500 ETF Trust (SPY) instead of the stocks themselves, and the prospectus says its performance does not include the dividends SPY pays. Its returns come only from SPY's price changes, limited by the buffer and cap. Investors who rely on regular income would need to sell shares to raise cash.
What are GDEC's cap and buffer?
For the outcome period from December 22, 2025, to December 18, 2026, GDEC aims to absorb the first 15% of SPY's price losses and to capture gains up to 12.08%, both before fees. After fees, the buffer is 14.15% and the cap is 11.24%. The 15% buffer stays the same each year. The cap is reset every December based on market conditions. About a week before each period ends, the fund's website shows the expected cap range for the next one.
What happens if you buy GDEC in the middle of the outcome period?
Your results may be quite different from the stated buffer and cap. Both are fixed at the start of each period, based on SPY's price and the fund's value on that day. If you buy later at a different price, you may have less upside left or less buffer protection. The prospectus also warns that, partway through a period, the fund's value can differ noticeably from SPY's price movement.
GDEC vs PDEC: what's the difference?
Both are U.S. equity buffer ETFs that reset in December, but different firms run them. GDEC comes from First Trust, with Vest as sub-adviser. PDEC is Innovator's U.S. Equity Power Buffer ETF. PDEC charges 0.79% compared with GDEC's 0.85%. Its one-year return was 11.6%, against GDEC's 10.7%, as of October 27, 2026. PDEC is also larger: about $984 million as of July 31, 2026, compared with GDEC's roughly $428 million as of August 31, 2026. Their caps and buffers are worth comparing in each prospectus.
Can GDEC lose money?
Yes. If SPY falls more than 15% over an outcome period, the fund takes every further loss one-for-one, and the prospectus says the buffer is not guaranteed. Prices also move during a period. GDEC fell 10.6% between February 19 and April 8, 2025, before recovering by June 10. Other risks include the options losing value, a counterparty failing to pay, and cash redemptions that may make the fund less tax-efficient than some other ETFs.