At a glance
SQMX charges 0.85% a year, below the 0.86% average of the 7 funds most like it (the 3rd cheapest of 8). It has $54.7M in assets, the 8th largest of that group. Over the past year it returned +6.4% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds.
The short version
FT Vest U.S. Equity Quarterly Max Buffer ETF (SQMX), from First Trust, holds FLEX options on the State Street SPDR S&P 500 ETF Trust (SPY). The options cushion losses over three-month periods, and in exchange gains are tightly capped. From September 21 to December 18, 2026, it aims to absorb the first 12.5% of SPY's price decline, with gains capped at 3%, before fees. Its 0.85% expense ratio is close to the 0.86% peer average.
Price history
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SQMX +6.4% 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 | |
|---|---|---|---|---|---|---|
| SQMX official prospectus, to Dec 31, 2025 | — | +8.20% | — | — | — | — |
| SQMX price data to Oct 27, 2026 | +5.0% | +6.4% | — | — | — | +7.2% |
- Over the year to Oct 27, 2026, SQMX returned +6.4%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+8.6%); its best was 2025 (+8.6%).
- The deepest fall in its price history was 7.4% (Feb 19, 2025 to Apr 8, 2025), recovered by May 27, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +5.0% | — |
| 2025 | +8.6% | +8.46% |
| 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 $8.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.32%, +0.47%, +1.19%.
How it works
SQMX doesn't own stocks directly. It puts substantially all its assets into FLEX Options. These are exchange-traded option contracts whose strike prices and expiration dates can be customized. They track the price of the State Street SPDR S&P 500 ETF Trust (SPY), which holds the stocks in the S&P 500 Index. As of August 31, 2026, 12 option positions made up about 99.1% of assets, and cash made up 0.9%. The fund follows SPY's price only, so holders don't receive SPY's dividends. Vest Financial is the sub-advisor.
The fund works in roughly three-month "Target Outcome Periods." On the first day of each period it buys a new set of options, which sets a new cap and buffer. A buffer is the share of SPY's losses the fund aims to absorb. A cap is the most it can gain. The rule is to get the largest buffer possible while keeping the cap at 3% or more. If the full buffer leaves room, the cap goes above 3%. If a 3% cap would leave a buffer below 5%, the cap is lowered. Future buffers are expected to fall between 5% and 100%.
For September 21 to December 18, 2026, the buffer is 12.50% and the cap is 3.00%. After fees, they are 12.29% and 2.79%. If SPY falls more than the buffer, the fund takes the extra losses one-for-one. These targets apply only to shares held for an entire period.
What it really costs
- SQMX 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 is designed to give up most of the stock market's upside in exchange for a cushion against the first part of each quarter's losses.
SQMX launched in December 2024, so it has no record from the 2008, 2020 or 2022 sell-offs. Its only full calendar year, 2025, returned 8.46%. Its deepest drop was 7.4%, from February 19 to April 8, 2025. It recovered by May 27, 2025, about 1.6 months later. Its one-year volatility, a measure of how much returns swing, was 3.8% as of October 27, 2026. Smaller swings may help someone who has to sell shares in a weak quarter. But the buffer applies fully only over a complete period, and any drop beyond it passes straight through. The fund has recorded no distributions, so it doesn't supply income. The 0.85% fee and a cap of about 3% per period limit growth. 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-linked returns with a 12.5% buffer for September 21–December 18, 2026, and who accept a 3% cap.
- People who put smoother returns first: one-year volatility was 3.8%, and its sensitivity to market moves (beta) was 0.26, as of October 27, 2026.
- Holders who can buy near the start of a three-month period and hold it to the end, which is when the stated cap and buffer apply.
Look elsewhere if
- Income seekers: the fund has recorded no distributions, and its returns leave out the dividends paid by SPY.
- Growth-focused investors: its 6.4% one-year return ranked 8th of 8 buffer funds compared, as of October 27, 2026.
- Those who prefer larger funds: its $54.7 million in net assets, as of August 31, 2026, was the smallest among eight comparable buffer funds.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| SQMX this fund | 0.85% | $54.7M | +6.4% | — |
| 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 SQMX pay dividends?
No. The fund has recorded no distributions. It holds options on the State Street SPDR S&P 500 ETF Trust (SPY), not the stocks themselves. Its prospectus states that its performance won't reflect the dividends SPY pays. So holders get a price-only return, within a cap and buffer, without the income from S&P 500 dividends. Investors who need regular cash payouts may want to compare dividend-paying stock or bond funds.
How does the SQMX buffer work?
SQMX aims to absorb the first part of SPY's price losses over each three-month period. From September 21 to December 18, 2026, the buffer is 12.50% and the cap on gains is 3.00%. After fees, they are 12.29% and 2.79%. If SPY falls more than the buffer, the fund takes the remaining losses one-for-one. The fund resets the buffer and cap each quarter based on market conditions, so both will change over time.
What's the difference between SQMX and BUFR?
Both are First Trust buffer ETFs sub-advised by Vest. They differ in cost, size and results. SQMX charges 0.85%, while the FT Vest Laddered Buffer ETF (BUFR) charges 0.95%. BUFR had about $10.5 billion in net assets, and SQMX had $54.7 million, both as of August 31, 2026. BUFR returned 11.6% over one year, against 6.4% for SQMX, as of October 27, 2026. SQMX gives up more upside in exchange for its quarterly buffer.
Is SQMX good for retirement?
It may suit retirees who care more about smaller swings than about growth. Its deepest drop was 7.4%, in early 2025, and it recovered in about 1.6 months. Its one-year volatility was 3.8% as of October 27, 2026. The trade-offs: it pays no income, and it caps gains at about 3% per period. Its history starts in December 2024, so it hasn't been tested in a long bear market. Its 0.85% fee is close to the 0.86% peer average.
What happens if I buy SQMX in the middle of an outcome period?
Your results can differ from the stated cap and buffer. Those targets apply only to shares bought on the first day of a period and held to its end. If the fund has already risen toward its cap, there may be little upside left. If it has already fallen, part of the buffer may already be used up. The period running September 21 to December 18, 2026, will be followed by a new period with a new cap and buffer.