At a glance
XFEB charges 0.85% a year, below the 0.86% average of the 7 funds most like it (the 3rd cheapest of 8). It has $29.5M in assets, the 8th largest of that group. Over the past year it returned +9.0% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds.
The short version
FT Vest U.S. Equity Enhance & Moderate Buffer ETF – February (XFEB) is a First Trust fund that holds customized options on the SPDR S&P 500 ETF Trust (SPY), not stocks. Over each roughly one-year period starting in February, it aims for about twice SPY's price gain up to a preset cap, while absorbing the first 15% of SPY's losses before fees. It pays no dividends and charges 0.85% a year.
Price history
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XFEB +9.0% 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 | |
|---|---|---|---|---|---|---|
| XFEB price data to Oct 27, 2026 | +7.5% | +9.0% | — | — | — | +9.7% |
- Over the year to Oct 27, 2026, XFEB returned +9.0%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+9.1%); its best was 2025 (+9.1%).
- The deepest fall in its price history was 9.1% (Feb 21, 2025 to Apr 8, 2025), recovered by May 15, 2025.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +7.5% |
| 2025 | +9.1% |
| 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 $1.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.16%, +0.67%, +1.17%.
How it works
XFEB does not track an index or pick stocks. It invests nearly all its assets in FLEX options on the SPDR S&P 500 ETF Trust (SPY). FLEX options are exchange-traded contracts, with customizable terms, whose value is tied to SPY's price. Sub-advisor Vest Financial combines them so the fund's result over each roughly one-year "target outcome period" depends on SPY's price change. As of August 31, 2026, eight options positions made up 99% of net assets, with the rest in cash.
If SPY rises over a period, the fund seeks about twice that gain, up to a preset cap. If SPY falls, the buffer seeks to absorb the first 15% of losses. Beyond that, the fund loses one-for-one (a 20% SPY drop means about a 5% fund loss), all before fees. For the period from February 24, 2025, to February 20, 2026, the cap was 9.80%, or 8.95% after fees, and the after-fee buffer was 14.15%. At each February reset, the buffer stays at 15% but the cap changes with market conditions. Returns exclude SPY's dividends.
This is not daily leverage. The targets apply only to shares held for a full period. Anyone getting in or out mid-period may see very different results, and on a given day the fund won't move at twice SPY's rate.
What it really costs
- XFEB 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
Its options aim to absorb the first 15% of SPY's losses over each one-year period, and in the year to October 27, 2026, its price moved about a third as much as the market's (a beta of 0.31).
XFEB could add cushioned stock exposure. Its record is short: it launched in February 2024, after the 2008, 2020 and 2022 downturns. Its deepest drop was 9.1%, from February 21 to April 8, 2025, and it recovered by May 15, 2025, about 1.2 months later. Because the buffer is built for full periods, prices can still fall mid-period, and anyone cashing out at a low locks in that loss. Its only full calendar year, 2025, returned 9.12%, and the one-year return was 9.0% as of October 27, 2026.
It pays no income: no distributions are recorded and returns exclude SPY's dividends, so withdrawals mean cashing out shares. It charges 0.85% a year, and net assets were a small $29.5 million as of August 31, 2026. Past results don't predict future returns, 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 over each February-to-February outcome period.
- Patient holders who can stay in for full one-year periods, since the cap and buffer targets apply only to shares held start to finish.
- Investors expecting modest stock gains, since the fund seeks about twice SPY's price rise over a full period, until the cap is reached.
Look elsewhere if
- Retirees who rely on fund income: XFEB has recorded no distributions, and its returns exclude the dividends paid by SPY's stocks.
- Investors who want full S&P 500 gains in strong years: upside stops at a cap, 8.95% after fees for the period ending February 20, 2026.
- Cost-conscious investors or anyone likely to cash out mid-period: XFEB charges 0.85% a year, and mid-period results can stray far from targets.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| XFEB this fund | 0.85% | $29.5M | +9.0% | — |
| 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 XFEB a 2x leveraged ETF?
Not in the usual sense. Daily leveraged funds reset their exposure every day, but XFEB resets once a year, when it invests in a new set of FLEX options. It seeks about twice SPY's price gain measured over a full one-year outcome period, and only up to a cap. Losses are not doubled: the first 15% of SPY's decline is buffered and further losses pass through one-for-one, before fees. On any given day, the fund will not rise at twice SPY's rate.
Can you lose money in XFEB?
Yes. The buffer covers only the first 15% of SPY's price decline over a full outcome period, before fees. That was 14.15% after fees for the period ending February 20, 2026. If SPY falls 20%, the fund would lose about 5% before fees. Mid-period prices can also drop: XFEB fell 9.1% from February 21 to April 8, 2025, before recovering by May 15, 2025. Investors who get in after a period starts may see very different results, including less downside protection.
Does XFEB pay dividends?
No. XFEB has no recorded distributions, and its design leaves dividends out. The fund holds options on SPY rather than stocks, so its returns follow only SPY's price change, not the dividends that S&P 500 companies pay. That makes it a poor fit for anyone who wants a regular income stream from a fund. Retirees using it would need to cash out shares to fund withdrawals, and results line up with the targets only at the end of an outcome period.
What's the difference between XFEB and SPY?
SPY holds the stocks in the S&P 500 and passes along their dividends, so its holders get roughly the full market gain or loss. XFEB holds FLEX options on SPY instead. Over each one-year outcome period, it seeks about twice SPY's price gain up to a cap while absorbing the first 15% of losses, before fees. In exchange, XFEB gives up dividends, limits gains in strong years and charges 0.85% a year. Its targets also apply only to full-period holders.
What is XFEB's cap and why does it change?
The cap is the most XFEB can gain over one outcome period for shares held the whole time. For February 24, 2025, to February 20, 2026, it was 9.80% before fees and 8.95% after. A new cap is set when each period starts in February, based on market conditions as the fund invests in new options, so it can rise or fall. About a week before a period ends, the fund's website posts an expected cap range, though the final cap may land outside it.