At a glance
SFEB charges 0.9% a year, above the 0.86% average of the 7 funds most like it (the 6th cheapest of 8). It has $129.6M in assets, the 8th largest of that group. Over the past year it returned +11.5% with distributions reinvested (S&P 500: +11.5%), 6th of those 8 funds.
The short version
FT Vest U.S. Small Cap Moderate Buffer ETF - February (SFEB) holds options on the iShares Russell 2000 ETF instead of owning small-company stocks directly. Over each roughly one-year period starting in February, it aims to absorb the first 15% of losses in return for a cap on gains. Its small-cap focus sets it apart from its buffer-fund peers. Its 0.90% expense ratio is above the 0.86% peer average, and it pays no dividends.
Price history
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SFEB +11.5% 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 | |
|---|---|---|---|---|---|---|
| SFEB price data to Oct 27, 2026 | +10.2% | +11.5% | — | — | — | +10.8% |
- Over the year to Oct 27, 2026, SFEB returned +11.5%, 6th of 8 among similar funds.
- Its worst full calendar year was 2025 (+9.2%); its best was 2025 (+9.2%).
- The deepest fall in its price history was 16.7% (Dec 2, 2024 to Apr 8, 2025), recovered by Aug 28, 2025.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +10.2% |
| 2025 | +9.2% |
| 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 added a net $2.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.86%, -0.46%, +1.03%.
How it works
SFEB does not pick stocks. It puts substantially all of its assets into FLEX options, which are exchange-traded options with customized prices and expiration dates. These options track the price of the iShares Russell 2000 ETF (IWM), a BlackRock fund that follows the Russell 2000 Index of roughly 1,945 small U.S. companies. Vest Financial LLC, the sub-advisor, builds the options mix. As of August 31, 2026, 16 option positions made up 99.39% of assets and cash made up 0.69%. Because the fund holds options rather than shares, its returns do not include IWM's dividends.
The options are set for a "target outcome period" of about one year. For February 24, 2025 through February 20, 2026, the cap was 16.47% and the buffer covered the first 15% of IWM losses, both before fees. After fees, those figures were 15.57% and 14.10%. If IWM fell 20%, the fund aimed to lose about 5% before fees. At each reset the fund buys new options. The 15% buffer stays the same, but the cap changes with market conditions. About a week before each period ends, the fund's website posts an expected cap range.
These outcomes apply only to investors who get in on the first day of a period and hold to its end. Anyone who enters or exits partway through may see very different results. During a period, the fund's price may move less than IWM's.
What it really costs
- SFEB 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
- 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 adds small-company stock exposure with a downside buffer and smaller swings than the Russell 2000 itself, but it provides no income.
SFEB could add small-company stocks to a portfolio while damping their swings. As of October 27, 2026, its one-year volatility was 8.8% and its beta (sensitivity to market moves) was 0.56. It launched in February 2024, so it has no record through the 2008, 2020 or 2022 downturns. Its only full calendar year, 2025, returned 9.24%. Its deepest drop was 16.7%, from December 2, 2024 to April 8, 2025. That is a reminder that the buffer applies only over a full outcome period. The fund recovered by August 28, 2025, about 4.7 months later. Someone who had to cash out near the low would have locked in the loss. It has paid no distributions, and its 0.90% expense ratio is above 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 who want Russell 2000 small-company exposure with a buffer against the first 15% of losses over each February-to-February period.
- Holders willing to invest near the February reset and hold for the full period to receive the intended buffer and cap.
- People who accept giving up IWM's dividends and gains above the cap in exchange for smaller swings, such as 8.8% one-year volatility.
Look elsewhere if
- Income seekers: the fund has recorded no distributions, and its returns exclude the dividends paid by the iShares Russell 2000 ETF.
- Cost-focused investors: the 0.90% expense ratio is above the 0.86% average of the buffer funds it is compared with.
- Those wanting a long record or a large fund: it launched in February 2024 and had about $130 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 |
|---|---|---|---|---|
| SFEB this fund | 0.9% | $129.6M | +11.5% | — |
| 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
How does the SFEB buffer work?
SFEB uses FLEX options on the iShares Russell 2000 ETF to absorb the first 15% of that fund's price losses over a roughly one-year period. In return, gains are capped. For February 24, 2025 through February 20, 2026, the cap was 16.47% before fees, or 15.57% after fees. The buffer after fees was 14.10%. Losses beyond 15% pass through one for one. A new cap is set at each February reset.
Does SFEB pay dividends?
No. The fund has recorded no distributions. It holds options on the iShares Russell 2000 ETF rather than the ETF's shares, so it does not collect the dividends that ETF pays. The prospectus states that the fund's performance will not reflect those dividends. Investors who want income from small-company stocks would need to look at funds that own the stocks directly.
What's the difference between SFEB and FFEB?
Both are First Trust buffer ETFs managed with Vest that reset each February, but they track different stocks. SFEB is built on the small-cap Russell 2000, while FFEB's name points to broad U.S. equity, so they aren't like-for-like. FFEB costs 0.85% versus SFEB's 0.90%. It had about $1.42 billion in net assets versus about $130 million as of August 31, 2026. As of October 27, 2026, FFEB's one-year return was 12.9% versus SFEB's 11.5%.
Can you lose money in SFEB?
Yes. If the Russell 2000 ETF falls more than 15% over an outcome period, the fund takes the extra losses one for one. The buffer also applies only to investors who hold for the whole period. Anyone who enters or exits midway can see very different results. SFEB's deepest drop was 16.7%, from December 2, 2024 to April 8, 2025. The prospectus also lists options and counterparty risks.
Is SFEB good for retirement?
It depends on the role. SFEB may suit retirees who want some small-company stock exposure with a buffer and smaller swings. Its one-year volatility was 8.8% as of October 27, 2026. However, it pays no income. Its 0.90% expense ratio is above the 0.86% peer average. It has existed only since February 2024, so it has no record through a long bear market. Gains above each period's cap are given up.