At a glance
OCTM charges 0.85% a year, below the 0.86% average of the 7 funds most like it (the 3rd cheapest of 8). It has $31.5M in assets, the 8th largest of that group. Over the past year it returned +5.9% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds.
The short version
FT Vest U.S. Equity Max Buffer ETF - October (OCTM) uses FLEX options on the SPDR S&P 500 ETF Trust (SPY) to cushion losses over yearlong periods in exchange for capped gains. It seeks the largest available buffer while generally keeping a cap of at least 7%. For the period ended October 16, 2026, it sought to absorb the first 43.73% of SPY's price losses while capping gains at 7.00%, before its 0.85% annual fee.
Price history
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OCTM +5.9% 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 | |
|---|---|---|---|---|---|---|
| OCTM official prospectus, to Dec 31, 2025 | — | +6.84% | — | — | — | +6.14% |
| OCTM price data to Oct 27, 2026 | +5.4% | +5.9% | — | — | — | +6.3% |
- Over the year to Oct 27, 2026, OCTM returned +5.9%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+7.0%); its best was 2025 (+7.0%).
- The deepest fall in its price history was 3.3% (Feb 19, 2025 to Apr 8, 2025), recovered by May 19, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +5.4% | — |
| 2025 | +7.0% | +6.84% |
| 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 $849K (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.21%, +0.53%, +0.74%.
How it works
OCTM, from First Trust with sub-advisor Vest Financial, doesn't own stocks. It puts substantially all its assets into FLEX options, which are option contracts listed on an exchange whose terms, such as price levels and expiration dates, can be customized. They are tied to the price of the SPDR S&P 500 ETF Trust (SPY), a unit investment trust that aims to hold the stocks in the S&P 500 index. As of August 31, 2026, 12 option positions made up about 99.7% of OCTM, with 0.35% in cash. Because it holds options rather than SPY shares, its returns exclude SPY's dividends.
Each outcome period lasts about a year. At the start, the fund seeks the largest buffer (the share of SPY's price losses it aims to absorb) that still allows a cap (the most it can gain) of at least 7%. If a 7% cap would leave a buffer under 20%, it lowers the cap instead. For October 20, 2025, to October 16, 2026, the buffer was 43.73% and the cap 7.00%, or 42.88% and 6.15% after fees. If SPY falls past the buffer, the fund takes the further losses one for one.
These outcomes apply only to shares held for a full period from its first day. Entering or exiting partway means a different effective cap and buffer. A new period began October 16, 2026, with new terms.
What it really costs
- OCTM 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 seeks to absorb a large share of S&P 500 price losses over each yearlong period, giving up gains above its cap and the index's dividends in return.
OCTM launched on October 18, 2024, so it has no record from the 2008, 2020 or 2022 downturns. Its only full calendar year, 2025, returned 6.84%. Its deepest drop was 3.3%, from February 19 to April 8, 2025, and it regained its prior high by May 19, 2025, about 1.3 months later. That narrow range could help someone who must draw cash in a weak year. But the buffer is designed to work only over a full outcome period, and losses beyond it pass through.
Gains are capped too: its 5.9% one-year return to October 27, 2026, trailed all seven similar buffer funds. It pays no distributions, and its returns exclude the S&P 500's dividends, so it isn't an income source. Its 0.85% expense ratio (annual fee) sits near the 0.86% peer average. 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 seeking S&P 500 price exposure with a deep cushion, like the 43.73% buffer for the period ended October 16, 2026, despite a 7.00% cap.
- People in or near retirement who value steadier results: its deepest drop through October 27, 2026, was 3.3%, recovered in about 1.3 months.
- Investors able to enter at the October reset and stay the full year, which is when the stated cap and buffer are designed to apply.
Look elsewhere if
- Income seekers: OCTM has made no distributions, and its option-based returns exclude the dividends paid by SPY's S&P 500 stocks.
- Growth-focused investors: with a cap near 7%, its one-year return was 5.9% as of October 27, 2026, last among eight buffer funds compared.
- Anyone likely to exit or add money mid-period: partway through, the remaining buffer and cap can differ from the stated figures.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| OCTM this fund | 0.85% | $31.5M | +5.9% | — |
| 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 is OCTM's cap and buffer?
For the outcome period from October 20, 2025, to October 16, 2026, OCTM sought to buffer the first 43.73% of SPY's price losses while capping gains at 7.00%, or 42.88% and 6.15% after fees. A new period began October 16, 2026, with a new cap and buffer set by market conditions at the reset. The fund expects future buffers of 20% to 100% and announces a narrower expected range about a week before each reset.
Does OCTM pay dividends?
No. OCTM has recorded no distributions and isn't built to produce income. It holds FLEX options on the SPDR S&P 500 ETF Trust (SPY) rather than SPY shares, and its prospectus says its performance won't reflect SPY's dividends. So a holder gives up the dividends paid by S&P 500 companies, along with gains above the cap, in exchange for the buffer against losses.
What's the difference between OCTM and FDEC?
Both come from the FT Vest lineup and charge a 0.85% expense ratio, but OCTM is a max buffer fund. It seeks the largest available buffer while generally keeping a cap of at least 7%, and it resets each October. FDEC, a December series in the same lineup, isn't labeled a max buffer fund. Over the year to October 27, 2026, FDEC returned 12.9% and OCTM 5.9%. Each fund's stated cap and buffer are worth comparing before investing.
Can you lose money in OCTM?
Yes. The buffer covers losses only up to its stated level over a full outcome period, and it isn't guaranteed. In the period ended October 16, 2026, if SPY had fallen more than 43.73%, OCTM would have taken the further losses one for one, before fees. Investors who enter mid-period may have less protection, and the prospectus warns that a shareholder could lose their entire investment. Through October 27, 2026, its deepest drop was 3.3%.
Is OCTM expensive compared with other buffer ETFs?
Not especially. OCTM's expense ratio is 0.85%, according to its prospectus filed September 28, 2026. That is close to the 0.86% average of seven similar buffer funds. Innovator's PJAN and PDEC charge 0.79%, while FT Vest's laddered BUFR and BUFD charge 0.95%. Size is a bigger difference. With $31.5 million in net assets as of August 31, 2026, OCTM was the smallest of the eight, and its prospectus notes the risk of a thin trading market for its shares.