At a glance
TDEC charges 0.95% a year, above the 0.86% average of the 7 funds most like it (the 6th cheapest of 8). It has $16.3M in assets, the 8th largest of that group. Over the past year it returned +13.8% with distributions reinvested (S&P 500: +11.5%), the best of those 8 funds.
The short version
FT Vest Emerging Markets Buffer ETF – December (TDEC) uses options on the iShares MSCI Emerging Markets ETF (EEM) to seek EEM's price gains up to a cap, with a buffer against the first 10% of its losses, over each one-year period. For the period ending December 18, 2026, the cap is 19.79% before fees (18.84% after). It charges 0.95% a year, above the 0.86% average for similar buffer funds, and has paid no dividends.
Price history
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TDEC +13.8% 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 | |
|---|---|---|---|---|---|---|
| TDEC official prospectus, to Dec 31, 2025 | — | +20.33% | — | — | — | — |
| TDEC price data to Oct 27, 2026 | +11.0% | +13.8% | — | — | — | +17.1% |
- Over the year to Oct 27, 2026, TDEC returned +13.8%, 1st of 8 among similar funds.
- Its worst full calendar year was 2025 (+21.4%); its best was 2025 (+21.4%).
- The deepest fall in its price history was 10.3% (Mar 19, 2025 to Apr 8, 2025), recovered by May 5, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +11.0% | — |
| 2025 | +21.4% | +21.43% |
| 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 $5.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.61%, -0.99%, +4.11%.
How it works
TDEC, a First Trust fund, does not own stocks. Its sub-adviser, Vest Financial LLC, puts substantially all assets in FLEX Options: exchange-traded options with customizable exercise prices and expiration dates. (An option is the right to buy or sell at a set price by a set date.) The options reference the iShares MSCI Emerging Markets ETF (EEM), which tracks the MSCI Emerging Markets Index of large and mid-sized companies, with significant Asian exposure. As of August 31, 2026, 12 option positions made up 99.5% of net assets.
Outcomes are set for a roughly one-year “target outcome period.” From December 22, 2025 through December 18, 2026, the fund seeks EEM's price gains up to a 19.79% cap while absorbing the first 10% of EEM losses, before fees. After fees, the cap is 18.84% and the buffer 9.05%. Beyond a 10% drop, losses pass through one for one: if EEM falls 20%, the fund falls about 10%. Returns exclude EEM's dividends.
At each period's end, the fund buys new options. The 10% buffer stays, but the cap resets with market conditions; about a week before, the fund's website posts an expected cap range. These outcomes apply only to full-period holders. Buying later or selling earlier can change results sharply, and mid-period the fund may move less than EEM.
What it really costs
- TDEC charges 0.95% 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 emerging-market stock exposure with a cushion against modest losses, but capped gains, no income and a short record suit a supporting role rather than a core one.
TDEC can add emerging-market stock exposure while softening modest losses. Its history is short: it launched December 20, 2024, so it has no record from the 2008, 2020 or 2022 sell-offs. Its worst calendar year is also its only full one: 2025, a 21.43% gain. Its deepest drop, 10.3% from March 19 to April 8, 2025, was recovered by May 5, about a month later. For someone who may need to sell in a bad year, the key detail is that the buffer applies only over a full outcome period, and EEM losses beyond 10% pass straight through.
The fund has paid no income, and its returns leave out EEM's dividends. Its 0.95% expense ratio is above the 0.86% average for similar buffer funds. Past results don't predict future ones, and any plan should weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting emerging-market stocks with a cushion against the first 10% of EEM losses, who accept a 19.79% pre-fee cap through December 18, 2026.
- Investors able to invest near a period's late-December start and hold the full year, when the stated buffer and cap are designed to apply.
- Portfolios light on emerging markets that want a small, buffered slice; its deepest drop since launch was 10.3%, recovered within about a month.
Look elsewhere if
- Income seekers: TDEC has paid no distributions, and its returns exclude the dividends paid by EEM, the fund its options reference.
- Investors who may need to exit before a period ends, or invest mid-period: results can differ sharply from the stated 10% buffer and cap.
- Investors focused on cost or track record: the 0.95% fee exceeds the 0.86% average for similar buffer funds, and TDEC launched in December 2024.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| TDEC this fund | 0.95% | $16.3M | +13.8% | — |
| 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 TDEC's cap and buffer?
TDEC's cap is 19.79% and its buffer covers the first 10% of EEM's price losses, both before fees, for the period from December 22, 2025 through December 18, 2026. After the 0.95% fee, the prospectus puts them at 18.84% and 9.05%. The buffer stays at 10% every period. The cap resets with market conditions when the fund buys new options, so the next period's cap will likely differ.
Can you lose money in TDEC?
Yes. The buffer covers only the first 10% of EEM's price decline over a full outcome period. If EEM falls further, the fund takes the extra losses one for one, and the prospectus warns that a shareholder could lose their entire investment. Shares bought or sold mid-period may not get the full buffer. TDEC's deepest drop since its December 2024 launch was 10.3%, from March 19 to April 8, 2025. It recovered by May 5, 2025.
Does TDEC pay dividends?
No. TDEC has made no distributions (payouts of income or gains). It holds options on EEM rather than stocks, and its returns are based on EEM's price alone, so EEM's dividends are not passed through to shareholders. For retirees who rely on portfolio income, that is a real trade-off. Cash would have to come from selling shares, and partway through an outcome period, the fund's value may not reflect the full buffer.
What's the difference between TDEC and FDEC?
Both are FT Vest December buffer ETFs, but they cover different markets. TDEC references emerging-market stocks through EEM, while FDEC, the FT Vest US Equity Buffer ETF – December, is a U.S. stock buffer fund. FDEC costs less, at 0.85% a year versus 0.95%. It is also far larger, with about $1.31 billion in net assets versus $16.3 million as of August 31, 2026. Over one year to October 27, 2026, TDEC returned 13.8% and FDEC 12.9%. FDEC can't stand in for emerging-market exposure.
What happens if I buy TDEC in the middle of the outcome period?
Results can differ sharply from the stated cap and buffer, which apply only to shares held from the first day of a period to the last. If EEM has already gained, less room may remain before the cap. If it has fallen, part of the buffer may already be used. The prospectus also warns that mid-period, the fund may not move as much as EEM. About a week before each period ends, the fund's website posts the expected cap range for the next one.