At a glance
XAUG charges 0.85% a year, below the 0.86% average of the 7 funds most like it (the 3rd cheapest of 8). It has $25.7M in assets, the 8th largest of that group. Over the past year it returned +7.5% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned +11.1% a year.
The short version
First Trust's FT Vest U.S. Equity Enhance & Moderate Buffer ETF – August (XAUG) holds customized exchange-traded options (FLEX options) on the SPDR S&P 500 ETF Trust (SPY), not stocks. Over each roughly one-year period, it seeks twice SPY's price gain up to a cap (10.02% before fees for the period ended August 21, 2026), plus a buffer against the first 15% of losses. It costs 0.85% a year and has made no distributions.
Price history
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XAUG +7.5% 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 | |
|---|---|---|---|---|---|---|
| XAUG official prospectus, to Dec 31, 2024 | — | +9.25% | — | — | — | +11.04% |
| XAUG price data to Oct 27, 2026 | +6.6% | +7.5% | +11.1% | — | — | +9.6% |
- Over the year to Oct 27, 2026, XAUG returned +7.5%, 8th of 8 among similar funds.
- Its worst full calendar year was 2024 (+9.0%); its best was 2025 (+9.5%).
- The deepest fall in its price history was 8.7% (Feb 19, 2025 to Apr 8, 2025), recovered by May 13, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +6.6% | — |
| 2025 | +9.5% | — |
| 2024 | +9.0% | +9.25% |
| 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 $26.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.44%, +0.61%, +0.64%.
How it works
XAUG follows no index. Sub-advisor Vest Financial runs a “target outcome strategy,” putting substantially all assets into FLEX options, exchange-traded option contracts with customized terms, on the SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500. Because it holds options, not SPY shares, the fund gets SPY's price moves but not its dividends. As of August 31, 2026, 10 option positions made up about 98.9% of net assets. The largest was a call option with a $7.67 strike price, at about 90.5%. It moves almost in step with SPY.
Over a full outcome period of about a year, the options aim for roughly twice SPY's price gain, up to a cap. They also aim to absorb the first 15% of any decline. Losses beyond 15% pass through one for one: if SPY falls 20%, the fund aims to lose 5%, before fees. For the August 18, 2025 to August 21, 2026 period, the cap was 10.02%, or 9.16% after fees, and the after-fee buffer was 14.14%. At each reset, new options keep the 15% buffer but set a new cap based on market conditions.
This is not a daily-reset leveraged fund. The doubling and the buffer apply only to shares held for a whole period, and daily moves rarely match twice SPY's. Investors who come in midway or leave early can see very different results.
What it really costs
- XAUG 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 pairs S&P 500 price exposure with a buffer against the first 15% of losses over each roughly one-year period and gives up gains above a cap; its price swings (volatility) measured 4.4% over the year to October 27, 2026.
XAUG launched in August 2023, so it has no record through the 2008, 2020 or 2022 downturns. Of its two full calendar years, the weaker one, 2024, still gained about 9%. Its deepest drop was 8.7%, from February 19 to April 8, 2025, and it recovered by May 13, 2025, about a month later. The buffer doesn't stop the price from falling mid-period, so anyone forced to cash out in a bad stretch could lock in a loss. SPY declines beyond 15% over a full period pass straight through.
XAUG has made no distributions, so it provides no income, and its returns leave out SPY's dividends. Withdrawals would have to come from cashing in shares. Its 0.85% annual expense ratio is well above what plain S&P 500 index funds typically charge. Past results don't predict future returns, and a plan should weigh 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 15% of SPY losses over each roughly one-year outcome period.
- Holders able to invest near an August reset and stay the full period, which is when the cap and buffer are designed to apply.
- People willing to give up big rallies for steadier results; its two full calendar years, 2024 and 2025, gained about 9% and 9.5%.
Look elsewhere if
- Retirees seeking income: XAUG has made no distributions, and its returns leave out the dividends SPY pays.
- Anyone wanting full upside or daily 2x leverage: the cap was 10.02% before fees for August 2025–August 2026, and doubling applies only over full periods.
- Investors focused on cost or fund size: it charges 0.85% a year and held about $25.7 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 |
|---|---|---|---|---|
| XAUG this fund | 0.85% | $25.7M | +7.5% | +11.1% |
| 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
Is XAUG a 2x leveraged ETF?
Not in the usual sense. XAUG doesn't reset its exposure daily. It holds FLEX options on the SPDR S&P 500 ETF Trust (SPY) that aim to deliver about twice SPY's price gain over a full outcome period of roughly a year, up to a cap. That cap was 10.02% before fees for August 18, 2025 to August 21, 2026. Day to day, its moves rarely match twice SPY's, and the targets apply only to shares held for the entire period.
What's the difference between XAUG and SPY?
SPY holds the stocks in the S&P 500 Index and aims to match the index's price and yield performance, so holders get the full gains, the full losses and the dividends. XAUG owns FLEX options on SPY instead. Over each roughly one-year period, it seeks twice SPY's price gain up to a cap, plus a buffer against the first 15% of losses, but it receives none of SPY's dividends. XAUG charges 0.85% a year for that trade-off.
Does XAUG pay dividends?
No. XAUG has no distributions on record, and it isn't designed to produce income. It holds FLEX options on the SPDR S&P 500 ETF Trust (SPY) rather than stocks, and its prospectus states that its performance won't reflect the dividends SPY pays. Investors who need regular cash from it would have to cash in shares. It works as a buffered growth holding rather than an income source.
What happens if I invest in XAUG partway through the outcome period?
Results can differ sharply from the fund's stated cap and buffer. Those targets apply only to shares held from the first day of an outcome period to the last. Depending on how SPY has moved, a later investor may have less upside left before the cap, or may face losses before the buffer takes effect. A new period began August 21, 2026. The fund's website posts an anticipated cap range about a week before each period ends, and the final cap can differ.
Has XAUG ever lost money in a calendar year?
Not through October 27, 2026. The prospectus reports a 9.25% return for 2024, when even its weakest quarter gained 1.63%. The share price gained about 9.5% in 2025 and 6.6% in 2026 through October 27. Its deepest drop was 8.7%, from February 19 to April 8, 2025, and it recovered by May 13, 2025. The record is short, though. The fund launched in August 2023, so it has no history through the 2008, 2020 or 2022 downturns.