At a glance
XDEC charges 0.85% a year, below the 0.86% average of the 7 funds most like it (the 3rd cheapest of 8). It has $203.9M in assets, the 8th largest of that group. Over the past year it returned +9.1% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned +10.7% a year. At its worst it fell 11.7% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 7 months after the low.
The short version
XDEC, First Trust's FT Vest U.S. Equity Enhance & Moderate Buffer ETF – December, holds FLEX options on the SPDR S&P 500 ETF Trust (SPY) rather than stocks. Over each roughly one-year outcome period, it aims for about twice SPY's price gain, capped at 9.21% after fees for the period ending December 18, 2026, plus a buffer against the first 15% of losses. The trade-offs are a 0.85% fee and no dividends.
Price history
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XDEC +9.1% 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 | |
|---|---|---|---|---|---|---|
| XDEC official prospectus, to Dec 31, 2024 | — | +9.44% | — | — | — | +7.05% |
| XDEC price data to Oct 27, 2026 | +7.6% | +9.1% | +10.7% | — | — | +7.9% |
- Over the year to Oct 27, 2026, XDEC returned +9.1%, 8th of 8 among similar funds.
- Its worst full calendar year was 2022 (-3.4%); its best was 2023 (+14.4%).
- The deepest fall in its price history was 11.7% (Dec 29, 2021 to Jun 16, 2022), recovered by Jan 27, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +7.6% | — |
| 2025 | +9.7% | — |
| 2024 | +9.6% | +9.44% |
| 2023 | +14.4% | +14.89% |
| 2022 | -3.4% | -3.95% |
| 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 | Lost 10.8% over that stretch · deepest drop along the way 11.7%, back to its old high 7.4 months after the low |
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 $24.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.21%, +0.68%, +1.14%.
How it works
The fund does not buy the S&P 500's stocks. It puts nearly all its assets into FLEX options on SPY, an ETF that tracks the S&P 500 Index. FLEX options trade on an exchange, but their strike prices and expiration dates can be customized. Vest Financial, the sub-advisor, builds the option mix at the start of each outcome period. As of August 31, 2026, the fund held 18 option positions worth 99.52% of assets, plus 0.54% cash. The largest, a SPY call option, made up about 87% of assets.
If SPY's price rises over the full period, the fund aims for about twice that gain, up to a cap. For December 22, 2025 to December 18, 2026, the cap is 10.06% before fees and 9.21% after. If SPY falls, the fund aims to absorb the first 15% of the loss (14.15% after fees). Losses beyond that pass through one-for-one: if SPY drops 20%, the fund loses about 5% before fees. Returns track price only, so SPY's dividends are given up.
Each new period starts with a fresh set of options. The buffer stays at 15%, but the cap changes with market conditions. The fund does not reset daily. The doubling and the buffer apply only across a full period. During the period, it won't move twice as much as SPY, and buying or selling partway through can give very different results.
What it really costs
- XDEC 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 offers S&P 500 price exposure with a 15% loss buffer and much smaller swings than the stock market, in exchange for capped gains.
XDEC could add stock exposure with milder swings. As of October 27, 2026, its three-year volatility was 6.6% and its one-year beta (sensitivity to the market) was 0.31. It launched in December 2021, so it has no record from the 2008 or 2020 crashes. In the 2022 bear market, it fell 11.7% from December 29, 2021 to June 16, 2022, and took about 7.4 months to recover, by January 27, 2023. Its worst calendar year, per the prospectus, was 2022 at -3.95%. The buffer only fully applies at the end of a period, so someone who has to sell partway through a bad year may get less protection than the 15% headline suggests. The fund recorded no distributions, so any cash would have to come from selling shares, and it charges 0.85% a year. 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 price exposure with a buffer against the first 15% of SPY losses and can hold for each full December-to-December period.
- Holders willing to accept a cap, 9.21% after fees for the period ending December 18, 2026, in return for about twice SPY's gain on modest rises.
- Those who value smaller swings: three-year volatility of 6.6% and a deepest drop of 11.7% as of October 27, 2026.
Look elsewhere if
- Investors who need regular income. The fund recorded no distributions, and its option strategy gives up SPY's dividends.
- Anyone who wants the full upside of the stock market. Gains above the cap are lost, and the 0.85% expense ratio cuts into every period's return.
- Buyers who may enter partway through a period or sell early, since the cap and buffer only apply to shares held for the whole period.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| XDEC this fund | 0.85% | $203.9M | +9.1% | +10.7% |
| 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 XDEC pay dividends?
No. The fund has no recorded distributions. It holds FLEX options on the SPDR S&P 500 ETF Trust (SPY) rather than the stocks themselves, and its returns are based on SPY's price only. That means the dividends SPY's stocks pay are not passed through. Investors who want cash from XDEC would have to sell shares. That matters for retirees who rely on regular income from their investments.
How does the XDEC buffer and cap work?
Over each outcome period of about one year, XDEC aims to absorb the first 15% of any fall in SPY's price (14.15% after fees). Losses beyond that pass through one-for-one. On the upside, it seeks about twice SPY's price gain, up to a cap. For December 22, 2025 to December 18, 2026, the cap is 10.06% before fees and 9.21% after. The cap resets each period. These outcomes apply only to shares held for the whole period.
Is XDEC a 2x leveraged ETF?
Not in the usual sense. Daily 2x leveraged funds reset every day. XDEC instead uses FLEX options to seek about twice SPY's positive price return over a full outcome period of about one year, up to a cap. Its day-to-day moves are not doubled. Losses are not doubled either: the first 15% of SPY's decline is buffered, and losses beyond that pass through one-for-one. Its one-year beta was 0.31 as of October 27, 2026.
What's the difference between XDEC and SPY?
SPY holds the stocks in the S&P 500 Index and passes along their dividends. XDEC holds options on SPY. It reshapes SPY's yearly price return: about double the gains up to a cap, a buffer against the first 15% of losses, and no dividends. XDEC charges a 0.85% expense ratio. Its swings have been much smaller. Its three-year volatility was 6.6% as of October 27, 2026, and it lost 3.95% in 2022.
How has XDEC performed since launch?
Per its prospectus, XDEC returned 9.44% in 2024 and 7.05% a year since its December 17, 2021 launch, as of December 31, 2024. It lost 3.95% in 2022 and gained 14.89% in 2023. Based on market prices, it gained 9.71% in 2025 and 7.62% in 2026 through October 27, 2026. Its three-year annualized return was 10.7% as of that date. Past results don't predict future returns.