At a glance
XIDE charges 0.85% a year, below the 0.86% average of the 7 funds most like it (the 3rd cheapest of 8). It has $22.8M in assets, the 8th largest of that group; it paid 6.33% of its price in distributions over the past 12 months, monthly. Over the past year it returned +6.3% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds.
The short version
FT Vest U.S. Equity Buffer & Premium Income ETF – December (XIDE), from First Trust, uses customized FLEX options on the SPDR S&P 500 ETF Trust (SPY) and short-term Treasury bills to target monthly income plus a buffer against the first 10% of SPY losses over each one-year period. Unlike typical buffer funds, it gives up all SPY price gains for that income: about 6.23% annualized, after fees, for the period ending December 18, 2026.
Price history
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XIDE +6.3% 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 | |
|---|---|---|---|---|---|---|
| XIDE official prospectus, to Dec 31, 2024 | — | +6.97% | — | — | — | — |
| XIDE price data to Oct 27, 2026 | +5.5% | +6.3% | — | — | — | +6.7% |
- Over the year to Oct 27, 2026, XIDE returned +6.3%, 8th of 8 among similar funds.
- Its worst full calendar year was 2024 (+6.7%); its best was 2025 (+6.7%).
- The deepest fall in its price history was 6.6% (Feb 19, 2025 to Apr 8, 2025), recovered by May 12, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +5.5% | — |
| 2025 | +6.7% | — |
| 2024 | +6.7% | +5.56% |
| 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 |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.4400 | |
| 2025 | $1.9200 | -5.9% |
| 2024 | $2.0400 |
What's inside
As of Aug 31, 2026, the fund held 3 securities; the ten largest made up 2.04% of assets.
| Holding | Weight | |
|---|---|---|
| UNITED STATES OF AMERICA - BUREAU OF THE PUBLIC DEBT Bonds and notes | 1.02% | |
| UNITED STATES OF AMERICA - BUREAU OF THE PUBLIC DEBT Bonds and notes | 0.51% | |
| UNITED STATES OF AMERICA - BUREAU OF THE PUBLIC DEBT Bonds and notes | 0.51% |
By country
United States 2.04%By asset type
Bonds and notes 2.04%What changed recently
- Over the three months to Aug 31, 2026, investors withdrew a net $1.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.32%, +0.58%, +0.61%.
How it works
XIDE puts substantially all its assets in FLEX options (exchange-traded options with customizable terms) and short-term Treasury bills. The options are on the SPDR S&P 500 ETF Trust (SPY), a unit investment trust holding the S&P 500's stocks. At the start of each roughly one-year outcome period, the fund invests in new options and Treasuries designed to pay a target income and absorb the first 10% of SPY losses. For December 22, 2025 to December 18, 2026, that target is about 7.08% annualized before fees, or 6.23% after.
As of August 31, 2026, the biggest position was a call option on SPY (which gains as SPY rises) with a strike price of just $0.07, so it tracks SPY closely; it was worth about 111% of net assets. The fund had also sold a call at $680.58, giving up gains above that price for an upfront payment, or premium, and paired a bought put (which gains as SPY falls) at $680.58 with a sold put at $612.52, 10% lower, to form the buffer.
Full-period holders aim to collect the income but forgo SPY's price gains and dividends. Beyond a 10% SPY drop, losses pass through one-for-one. Entering mid-period or exiting early can produce very different results. The buffer stays at 10%, but the income level resets each period.
What it really costs
- XIDE 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 main aim is a target monthly income, about 6.23% annualized after fees through December 18, 2026, cushioned by a 10% buffer, rather than growth.
XIDE launched December 15, 2023, so it has no record from the 2008, 2020 or 2022 downturns. Both full calendar years were positive: 5.56% in 2024 (per its prospectus) and about 6.7% in 2025 (based on market price). Its deepest drop, 6.6% from February 19 to April 8, 2025, was recovered by May 12, 2025. The income is designed to continue in a falling market, but if SPY drops more than 10% over a period, the fund loses one-for-one beyond the buffer, which matters for anyone who needs to cash out then.
The trailing 12-month yield was 6.33% as of October 27, 2026, paid monthly, but full-period holders give up SPY's price gains. The 0.85% expense ratio is close to the 0.86% average for similar buffer funds. 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
- Income-focused investors who value a target monthly payout, about 6.23% annualized after fees for the period ending December 18, 2026, over stock-market growth.
- Cautious investors wanting a cushion against the first 10% of SPY losses; one-year price swings (volatility) measured just 2.9% as of October 27, 2026.
- Investors able to invest at the start of an outcome period (the next begins after December 18, 2026) and hold it to the end.
Look elsewhere if
- Growth seekers: XIDE forgoes SPY price gains and dividends; its 6.3% one-year return trailed all seven similar buffer funds as of October 27, 2026.
- Anyone wanting deep-crash protection: losses beyond the 10% buffer pass through one-for-one, and the fund launched after the 2020 and 2022 selloffs.
- Those wary of small funds: assets were about $22.8 million as of August 31, 2026, far below seven similar buffer funds; trading may be thin.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| XIDE this fund | 0.85% | $22.8M | +6.3% | — |
| 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 XIDE pay monthly dividends?
Yes, XIDE pays monthly. Its trailing 12-month yield was 6.33%, or $1.92 per share, as of October 27, 2026. For the outcome period from December 22, 2025 to December 18, 2026, it targets income of about 7.08% annualized before fees, or 6.23% after. The money comes from option premiums and Treasury interest rather than stock dividends, and the income level resets each period. The prospectus also warns that distributions may exceed the fund's income and gains for a tax year.
Is XIDE good for retirement income?
It may suit retirees who want steady monthly income more than growth, but it has trade-offs. Full-period holders aim to receive the target income and a buffer against the first 10% of SPY losses, while giving up SPY's price gains. Its deepest drop was 6.6%, from February 19 to April 8, 2025, recovered by May 12, 2025. A SPY decline of more than 10% over a period would bring bigger losses, and the fund launched only in December 2023.
What's the difference between XIDE and FDEC?
Both are FT Vest December buffer ETFs with a 0.85% expense ratio, but XIDE adds a premium-income design: it gives up all of SPY's price gains in exchange for a target monthly income. That trade-off has weighed on returns: over the year to October 27, 2026, FDEC returned 12.9% versus 6.3% for XIDE. FDEC is also far larger, with about $1.31 billion in net assets against about $22.8 million for XIDE, both as of August 31, 2026.
What happens to XIDE if the S&P 500 falls 20%?
XIDE's share value would fall about 10% before fees if SPY, the S&P 500 ETF its options are based on, dropped 20% over a full outcome period. The fund aims to absorb the first 10% of SPY losses and takes further losses one-for-one; the prospectus uses exactly this example. It would still aim to pay the period's income. Results can differ for anyone who invests after a period starts or exits before it ends, and the buffer is not guaranteed.
What is XIDE's expense ratio?
XIDE's expense ratio is 0.85%, according to its prospectus filed December 29, 2025. That is close to the 0.86% average for similar buffer funds, below the 0.95% charged by FT Vest's laddered BUFR and BUFD, and above the 0.79% for Innovator's PJAN and PDEC. Fees come out of the income: the target of about 7.08% annualized before fees drops to about 6.23% after fees for the period ending December 18, 2026. Brokerage commissions and taxes are extra.