At a glance
XOCT charges 0.85% a year, below the 0.86% average of the 7 funds most like it (the 3rd cheapest of 8). It has $73.3M in assets, the 8th largest of that group. Over the past year it returned +8.6% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned +10.7% a year.
The short version
FT Vest U.S. Equity Enhance & Moderate Buffer ETF – October (XOCT), from First Trust, holds customized exchange-traded options (FLEX options) on the SPDR S&P 500 ETF Trust (SPY), not stocks. Over each one-year outcome period starting in October, it aims for about twice SPY's price gain up to a cap, while absorbing the first 15% of SPY's price loss. The trade-offs are a 0.85% expense ratio, no dividends and a firm ceiling on gains.
Price history
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XOCT +8.6% 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 | |
|---|---|---|---|---|---|---|
| XOCT official prospectus, to Dec 31, 2024 | — | +7.06% | — | — | — | +10.77% |
| XOCT price data to Oct 27, 2026 | +7.7% | +8.6% | +10.7% | — | — | +10.3% |
- Over the year to Oct 27, 2026, XOCT returned +8.6%, 8th of 8 among similar funds.
- Its worst full calendar year was 2024 (+7.0%); its best was 2025 (+10.3%).
- The deepest fall in its price history was 10% (Feb 19, 2025 to Apr 8, 2025), recovered by Jun 3, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +7.7% | — |
| 2025 | +10.3% | — |
| 2024 | +7.0% | +7.06% |
| 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 $3.0M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.33%, +0.66%, +0.96%.
How it works
XOCT does not track an index or pick stocks. It puts substantially all of its assets into FLEX options, which are exchange-listed option contracts with customized strike prices, styles and expiration dates. The options are on SPY, which holds the stocks in the S&P 500 Index. As of August 31, 2026, 21 option positions made up about 99.7% of the portfolio and cash was 0.38%. The sub-advisor is Vest Financial.
The options are set up for a roughly one-year "target outcome period." For the period from October 20, 2025 through October 16, 2026, the fund aimed for about twice SPY's price gain, capped at 10.26% (9.41% after fees). It also aimed to absorb the first 15% of SPY's losses (14.15% after fees). Losses beyond 15% pass through one for one: if SPY falls 20%, the fund falls about 5%. When a period ends, the fund buys a new set of options. The buffer stays at 15%, but the cap is reset based on market conditions. Returns do not include SPY's dividends.
These outcomes apply only to shares bought on the first day of a period and held to the last day. Between those dates, the fund's price will not move at twice SPY's rate, and it can fall even when SPY's loss is inside the buffer. This is not a daily-reset leveraged fund. The doubling applies only to the gain over the full period.
What it really costs
- XOCT 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 gives up much of the stock market's upside in exchange for an options buffer against the first 15% of S&P 500 price losses over each outcome period.
XOCT launched on October 20, 2023, so it has no record from the 2008, 2020 or 2022 downturns. Its weakest calendar year was 2024, when it gained 7.06%, according to the prospectus. Its deepest drop was 10%, from February 19 to April 8, 2025, and it recovered by June 3, 2025, about 1.8 months later. One-year volatility was 4.6% as of October 27, 2026, a measure of how much the price swings. That drop shows a key point for anyone who may need to sell in a bad stretch: the buffer only fully applies at the end of a period, so shares sold mid-period can lose more. The fund paid no distributions, so drawing cash from it means selling shares. It charges 0.85% a year. Past results don't predict the future, and a retirement 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 exposure with a 15% options buffer against price losses over each October-to-October outcome period.
- People who can buy near the start of an outcome period and hold to its end, when the buffer and cap fully apply.
- Investors willing to accept a capped gain (10.26% before fees for the period ending October 16, 2026) in exchange for downside protection.
Look elsewhere if
- Retirees who need regular income: XOCT recorded no distributions, and its returns leave out SPY's dividends.
- Cost-conscious investors: the 0.85% expense ratio is far above what a plain S&P 500 index fund typically charges.
- Investors who may need to sell mid-period, when results can differ sharply from the buffer and cap. It fell 10% in early 2025.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| XOCT this fund | 0.85% | $73.3M | +8.6% | +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 XOCT pay dividends?
No. XOCT has no recorded distributions. It holds options on the SPDR S&P 500 ETF Trust (SPY), not the stocks themselves, and the prospectus says its performance does not include the dividends SPY pays. Investors who want cash flow would have to sell shares. Over long periods that missing dividend income can add up, because dividends make up a meaningful part of the S&P 500's total return.
How does the XOCT buffer work?
XOCT uses FLEX options to absorb the first 15% of SPY's price loss over each roughly one-year outcome period, or 14.15% after fees for the period ending October 16, 2026. Losses beyond that pass through one for one, so a 20% SPY drop would mean about a 5% fund loss. The buffer applies only to shares held for the full period. XOCT fell 10% between February 19 and April 8, 2025, then recovered by June 3.
What is the XOCT upside cap?
For the outcome period from October 20, 2025 through October 16, 2026, the cap was 10.26% before fees and 9.41% after fees. Within that limit, the fund aimed to return about twice SPY's price gain. A new cap is set at the start of each period based on market conditions. About a week before each reset, the fund's website posts an expected range, but the final cap may fall outside it.
Is XOCT a leveraged ETF?
Not in the usual daily-reset sense. XOCT aims for about twice SPY's price gain, but only over a full one-year outcome period and only up to the cap. It gets this through FLEX options, not borrowing or daily rebalancing. During a period, its price will not move at twice SPY's rate. Its one-year beta was 0.33 as of October 27, 2026, meaning it moved much less than the market day to day.
What's the difference between XOCT and SPY?
SPY holds the stocks in the S&P 500 and passes along their dividends. XOCT holds options on SPY that are built to absorb the first 15% of price losses and to double gains up to a cap over each outcome period. It pays no dividends and charges 0.85% a year. XOCT returned 8.6% over the year ending October 27, 2026, with 4.6% volatility. It gives up strong-market upside in exchange for a smoother ride.