At a glance
QMFE charges 0.9% a year, above the 0.86% average of the 7 funds most like it (the 6th cheapest of 8). It has $46.9M in assets, the 8th largest of that group. Over the past year it returned +13.6% with distributions reinvested (S&P 500: +11.5%), the best of those 8 funds.
The short version
FT Vest Nasdaq-100 Moderate Buffer ETF-February (QMFE), from First Trust with sub-advisor Vest Financial, holds FLEX options on the Invesco QQQ Trust, which tracks the Nasdaq-100 Index. Over each outcome period of about a year, starting in late February, it aims to absorb the first 15% of QQQ's price losses. In exchange, its gains are capped. It costs 0.90% a year, pays no dividends and held $46.9 million as of August 31, 2026.
Price history
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QMFE +13.6% 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 | |
|---|---|---|---|---|---|---|
| QMFE price data to Oct 27, 2026 | +12.2% | +13.6% | — | — | — | +14.4% |
- Over the year to Oct 27, 2026, QMFE returned +13.6%, 1st of 8 among similar funds.
- The deepest fall in its price history was 11.8% (Feb 24, 2025 to Apr 8, 2025), recovered by May 15, 2025.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +12.2% |
| 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 $3.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -0.12%, -0.66%, +2.36%.
How it works
QMFE does not own Nasdaq-100 stocks directly. Under normal conditions it puts substantially all its assets into FLEX options. These are exchange-traded option contracts with customized strike prices and expiration dates. They reference the Invesco QQQ Trust, Series 1, a unit investment trust sponsored by Invesco that holds all 100 stocks in the Nasdaq-100 Index. As of August 31, 2026, options made up about 99.3% of the fund across 14 positions, with 0.75% in cash. The fund's outcomes follow QQQ's price only, so holders do not receive QQQ's dividends.
The options are bought as a package at the start of each Target Outcome Period, which lasts about a year. In the first period, from February 24, 2025 to February 20, 2026, the fund aimed to match QQQ's price gain up to a cap of 14.52% (13.62% after fees). It also aimed to absorb the first 15% of losses (14.10% after fees). If QQQ fell 20%, the fund would aim to lose about 5% before fees.
At each reset the fund buys new options. The 15% buffer stays the same, but the cap depends on market conditions and changes every period. The stated outcomes apply only to someone who buys on the first day and holds to the end. Buying or selling mid-period can give very different results.
What it really costs
- QMFE charges 0.9% a year, versus an average of 0.86% for the similar funds below (6th 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 package aims to absorb the first 15% of each period's Nasdaq-100 losses, but the cap limits gains and the fund pays no income.
QMFE may give a retirement portfolio Nasdaq-100 exposure with a cushion against moderate declines. Its record is short. It launched February 21, 2025, so it has no history in the 2008, 2020 or 2022 sell-offs and no full calendar year. Its deepest drop was 11.8%, from February 24 to April 8, 2025, and it recovered by May 15, 2025, about 1.2 months later. That drop shows the buffer protects over the full period, not against every dip along the way. Someone forced to sell mid-period could lock in such a loss.
The fund pays no distributions, so withdrawals mean selling shares. Losses beyond 15% in a period pass through in full. At 0.90% a year, it costs more than the 0.86% average for similar buffer funds. 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 Nasdaq-100 exposure through QQQ and accept a cap on gains each period in exchange for a buffer on the first 15% of losses.
- Holders who can buy near the late-February reset and keep shares for the full outcome period of about a year, when the cap and buffer apply as designed.
- People seeking a smoother ride than the index alone: one-year volatility was 7.3% and beta 0.53 as of October 27, 2026.
Look elsewhere if
- Investors who need income: QMFE has paid no distributions, and its returns leave out QQQ's dividends.
- Cost-focused buyers: its 0.90% expense ratio is above the 0.86% average of similar buffer funds and ranks 6th of 8 on cost.
- Those who want a long track record or a large, heavily traded fund: it launched in February 2025 and held $46.9 million as of August 31, 2026.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| QMFE this fund | 0.9% | $46.9M | +13.6% | — |
| 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% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Does QMFE pay dividends?
No. QMFE had recorded no distributions as of October 27, 2026. The fund holds options on the Invesco QQQ Trust rather than the stocks themselves. Its target outcomes are based on QQQ's price return only, so QQQ's dividends are not passed through. Investors who need regular cash from this part of a portfolio would have to sell shares or look at funds that pay distributions.
How does the QMFE buffer work?
QMFE uses FLEX options on QQQ to absorb the first 15% of QQQ's price losses over each outcome period of about a year, before fees. If QQQ falls 20% over the full period, the fund aims to lose about 5% before fees. In return, gains are capped. For February 24, 2025 to February 20, 2026, the cap was 14.52% before fees and 13.62% after. The buffer stays at 15% every period, but the cap resets with market conditions.
What happens if you buy QMFE in the middle of the outcome period?
Your results may differ a lot from the stated cap and buffer. Those levels are fixed against QQQ's price and the fund's net asset value on the first day of each period. If the fund has already risen, there may be less room left before the cap. If it has fallen, part of the buffer may already be used up. The prospectus warns that the fund's value can differ significantly from QQQ's price moves during a period.
QMFE vs FFEB: what's the difference?
Both are First Trust buffer ETFs run with Vest on a February schedule, but they track different markets. QMFE uses options on the Invesco QQQ Trust, so its exposure is the Nasdaq-100. FFEB's name points to broad U.S. stocks. FFEB costs 0.85% against QMFE's 0.90%. It is also far larger: about $1.42 billion against $46.9 million as of August 31, 2026. Over the year to October 27, 2026, QMFE returned 13.6% and FFEB returned 12.9%.
Can you lose money in QMFE?
Yes. The buffer covers only the first 15% of QQQ's price losses over a full outcome period, before fees. After fees, it was 14.10% in the first period. Losses beyond that pass through one for one. Buying mid-period or selling early can also leave you open to bigger losses. The fund depends on options and a small number of market makers, and the prospectus states that a shareholder may lose their entire investment.