At a glance
SEPM charges 0.85% a year, below the 0.86% average of the 7 funds most like it (the 3rd cheapest of 8). It has $30.8M 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
First Trust's FT Vest U.S. Equity Max Buffer ETF – September (SEPM) uses customized options on the SPDR S&P 500 ETF Trust (SPY) to seek SPY's price return up to a cap over one-year periods that reset each September. Its hallmark is a near-total buffer: from September 21, 2026, to September 17, 2027, it seeks to shield against the first 99.98% of SPY's losses. The trade-off is a cap of 8.24% before its 0.85% fee.
Price history
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SEPM +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 | |
|---|---|---|---|---|---|---|
| SEPM official prospectus, to Dec 31, 2025 | — | +6.49% | — | — | — | +5.93% |
| SEPM price data to Oct 27, 2026 | +5.3% | +5.9% | — | — | — | +6.1% |
- Over the year to Oct 27, 2026, SEPM returned +5.9%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+6.6%); its best was 2025 (+6.6%).
- The deepest fall in its price history was 3.9% (Feb 19, 2025 to Apr 8, 2025), recovered by May 14, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +5.3% | — |
| 2025 | +6.6% | +6.49% |
| 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 $829K (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.24%, +0.55%, +0.73%.
How it works
SEPM holds no stocks directly. As of August 31, 2026, 12 option positions made up 99.6% of assets. They are FLEX options on the SPDR S&P 500 ETF Trust (SPY). FLEX options trade on an exchange, but their strike prices and expiration dates can be customized. SPY is a unit investment trust that holds as many S&P 500 stocks as practicable. The largest position was a call option (a right to purchase SPY at a set price), at about 87% of net assets. Sub-advisor Vest Financial manages the strategy. Returns follow SPY's price only, so holders miss SPY's dividends.
Each target outcome period lasts about a year. On day one, the fund resets into new options that set a cap (the most it can gain) and a buffer (the share of SPY losses it aims to offset). It seeks the largest buffer that still allows a cap of at least 7%. If that would leave a buffer below 20%, the cap can be lowered. For September 21, 2026, to September 17, 2027, the buffer is 99.98% and the cap 8.24%. After fees, they are 99.13% and 7.39%. Future buffers are expected to fall between 20% and 100%.
These targets apply only to shares held for the full period. Investing mid-period, after SPY has moved, changes the effective cap and buffer. The buffer is not a guarantee.
What it really costs
- SEPM 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 gives up most stock-market upside for a buffer against nearly all of SPY's price losses over each one-year period, which makes it a low-volatility, stock-linked holding.
SEPM launched on September 20, 2024, so it has no record from the 2008, 2020 or 2022 market drops. In 2025, its only full calendar year, it returned 6.49%, and its weakest quarter lost 0.47%. Its deepest decline was 3.9%, from February 19 to April 8, 2025, and it recovered by May 14, about 1.2 months later. That steadiness may appeal to someone drawing on savings in a weak market. But the buffer only fully applies to shares held for an entire period. The fund has made no distributions, so cash needs mean redeeming shares. Holders also give up SPY's dividends and most of its upside: the cap through September 17, 2027, is 7.39% after fees. Its 0.85% annual expense ratio is close to the 0.86% peer average. Past results don't predict future ones, and a sound plan looks at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting S&P 500 price exposure with a buffer against the first 99.98% of SPY losses through September 17, 2027, accepting an 8.24% cap.
- People who can invest near a period's start each September and hold the full year, when the stated cap and buffer apply.
- Savers wanting a steadier stock-linked holding: its deepest drop since launch was 3.9% as of October 27, 2026, with one-year volatility (price swings) of 2.5%.
Look elsewhere if
- Investors who need regular income: SEPM had made no distributions as of October 27, 2026, and its price-only design forgoes SPY's dividends.
- Investors seeking more stock-market upside: SEPM's 5.9% one-year return ranked last of eight similar buffer funds as of October 27, 2026.
- Investors wary of small funds: net assets were about $30.8 million as of August 31, 2026, the smallest of eight similar buffer funds.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| SEPM this fund | 0.85% | $30.8M | +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
Can you lose money in SEPM?
Yes. SEPM seeks to offset the first 99.98% of SPY's price losses. That applies only to shares held for the whole period from September 21, 2026, to September 17, 2027, and only before fees. After its 0.85% fee, the buffer is 99.13%. The prospectus says there's no guarantee the buffer works and that a shareholder may lose their entire investment. Investing mid-period can mean less protection. Future buffers could be as low as 20%, and FLEX options carry counterparty and valuation risks.
Does SEPM pay dividends?
No. SEPM had made no distributions as of October 27, 2026. It holds FLEX options on SPY rather than SPY shares, so its returns follow only SPY's price. It doesn't get the dividends paid by the S&P 500 companies SPY owns. That's a real drawback compared with owning an S&P 500 fund directly, because dividends make up part of stock returns over time. Anyone needing regular cash from SEPM would have to cash in shares.
What is SEPM's cap and buffer?
Before fees, SEPM's buffer is 99.98% and its cap is 8.24% for the outcome period from September 21, 2026, to September 17, 2027. After its 0.85% fee, those figures are 99.13% and 7.39%. Both reset each September based on market conditions. The fund generally aims for a cap of at least 7% and expects buffers between 20% and 100%. It announces a narrower expected range about a week before each new period.
What's the difference between SEPM and BUFD?
The main differences are structure, cost and size. SEPM holds one set of FLEX options on SPY that resets each September. It seeks to buffer nearly all SPY losses, with an 8.24% cap before fees through September 17, 2027. BUFD, as its name says, is laddered, an approach that usually staggers reset dates. BUFD costs 0.95% versus 0.85%. It had $2.04 billion in net assets versus SEPM's $30.8 million as of August 31, 2026. Over the year to October 27, 2026, BUFD returned 9.5% and SEPM 5.9%.
Is SEPM good for retirement?
It may suit retirees who put stability ahead of growth. Through October 27, 2026, SEPM's deepest drop since launch was 3.9%, recovered in about 1.2 months, and it returned 6.49% in 2025. But it didn't exist during the 2008, 2020 or 2022 downturns. It has made no distributions, misses SPY's dividends and caps gains at 7.39% after fees through September 17, 2027. Its 0.85% fee is near the 0.86% average for similar buffer funds. Results can differ for anyone entering or exiting mid-period.