At a glance
XSEP charges 0.85% a year, below the 0.86% average of the 7 funds most like it (the 3rd cheapest of 8). It has $136.4M in assets, the 8th largest of that group. Over the past year it returned +8.3% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned +11.0% a year.
The short version
FT Vest U.S. Equity Enhance & Moderate Buffer ETF – September (XSEP) is a First Trust ETF that holds FLEX options on the SPDR S&P 500 ETF Trust (SPY) instead of stocks. Over each one-year period starting in September, it aims for about twice SPY's price gain, up to a cap, and cushions the first 15% of SPY losses. Its 0.85% expense ratio is close to the 0.86% peer average. It pays no dividends.
Price history
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XSEP +8.3% 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 | |
|---|---|---|---|---|---|---|
| XSEP official prospectus, to Dec 31, 2024 | — | +8.49% | — | — | — | +11.89% |
| XSEP price data to Oct 27, 2026 | +7.3% | +8.3% | +11.0% | — | — | +10.9% |
- Over the year to Oct 27, 2026, XSEP returned +8.3%, 8th of 8 among similar funds.
- Its worst full calendar year was 2024 (+8.4%); its best was 2023 (+16.1%).
- The deepest fall in its price history was 9.2% (Feb 19, 2025 to Apr 8, 2025), recovered by May 16, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +7.3% | — |
| 2025 | +8.9% | — |
| 2024 | +8.4% | +8.49% |
| 2023 | +16.1% | +16.50% |
| 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 added a net $9.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.36%, +0.68%, +0.83%.
How it works
XSEP does not own the stocks in the S&P 500 Index. Nearly all of its money goes into FLEX Options, which are exchange-traded options whose strike prices and expiration dates can be customized. The options are tied to SPY, a unit investment trust that tracks the S&P 500. As of August 31, 2026, 20 option positions made up 99.71% of net assets and cash was 0.36%. Vest Financial is the sub-advisor. Because the fund holds options rather than SPY shares, its returns leave out SPY's dividends.
Results are set over a 'Target Outcome Period' of about one year. For the period from September 22, 2025 through September 18, 2026, the fund aimed for twice SPY's price gain up to a cap of 9.58%, or 8.73% after fees. It also aimed to absorb the first 15% of SPY losses (14.15% after fees). Losses past 15% pass through one for one: if SPY falls 20%, the fund loses about 5% before fees. Because gains are doubled, the fund hits the cap once SPY has risen by about half the cap.
When each period ends, the fund buys a new set of options. The 15% buffer stays the same, but a new cap is set from market conditions at that time. About a week before each reset, the fund's website posts an expected cap range. These outcomes apply only to shares held for a full period. Investors who come in partway through, or leave early, can get very different results.
What it really costs
- XSEP 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 S&P 500 exposure with a 15% loss buffer over each outcome period, and in return it limits gains with a cap and gives up dividends.
XSEP could serve as a cushioned stake in U.S. stocks. Its track record is short. It launched in September 2022, so it has no history through the 2008 crisis or the 2020 crash, and its price history doesn't cover the 2022 bear market. Its deepest drop was 9.2%, from February 19 to April 8, 2025. It recovered by May 16, 2025, about 1.2 months later. Its weakest calendar year, 2024, was still a gain of 8.4%. For anyone drawing money in a bad year, the buffer works fully only at the end of a period. Partway through, the share price can sit well below what the buffer suggests. The fund pays no income, so cash would have to come from redeeming shares. It costs 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 wanting a buffer against the first 15% of SPDR S&P 500 ETF Trust losses who can hold each full September-to-September outcome period.
- Those expecting modest gains: for 0.85% a year, it seeks twice SPDR S&P 500 ETF Trust price gains, up to a cap reset each September.
- Retirees wanting smaller swings: one-year volatility was 4.7% and the worst drop since launch, 9.2%, recovered in about a month (as of October 27, 2026).
Look elsewhere if
- Income seekers: no distributions are recorded, and returns exclude SPDR S&P 500 ETF Trust dividends because the fund holds options, not stocks.
- Growth seekers: 8.3% over one year and 11% a year over three ranked last among eight similar buffer funds, as of October 27, 2026.
- Anyone buying mid-period: the buffer and cap apply only to shares held from one September reset to the next; in-between results can differ sharply.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| XSEP this fund | 0.85% | $136.4M | +8.3% | +11.0% |
| 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
Does XSEP pay dividends?
No. The fund has no recorded distributions. It holds FLEX options on the SPDR S&P 500 ETF Trust (SPY) rather than SPY shares. The prospectus says its performance does not reflect the dividends SPY pays. Over time, that missing income is part of the price of the buffer and the doubled upside. Investors who want regular cash payouts from a stock fund would need to look at other kinds of funds.
How does the XSEP buffer and cap work?
Over each roughly one-year period, XSEP aims for twice SPY's price gain up to a cap, and absorbs the first 15% of SPY losses. For September 22, 2025 to September 18, 2026, the cap was 9.58% before fees (8.73% after). The buffer was 14.15% after fees. Losses beyond 15% pass through: a 20% SPY drop means about a 5% fund loss. The cap resets each September, and the buffer stays at 15%.
What is XSEP's expense ratio?
XSEP's expense ratio is 0.85%, all of it a management fee, according to the prospectus filed December 29, 2025. That puts it 3rd lowest of 8 similar buffer funds, close to the peer average of 0.86%. Innovator's PJAN and PDEC charge 0.79%, and FT Vest's laddered BUFR and BUFD charge 0.95%. The fee is already built into the after-fee cap and buffer figures.
XSEP vs BUFR: what's the difference?
Both are First Trust buffer ETFs sub-advised by Vest, but they're set up differently. XSEP follows one outcome period that resets each September and aims for twice SPY's gains up to a cap. BUFR, as its name says, is laddered: it spreads money across several outcome periods. BUFR is far larger, with about $10.5 billion in net assets as of August 31, 2026. It costs 0.95% versus 0.85%. It returned 11.6% over one year versus XSEP's 8.3%, as of October 27, 2026.
How has XSEP performed since launch?
XSEP has posted modest gains every calendar year since its September 2022 launch. The prospectus reports 16.5% for 2023 and 8.49% for 2024. Its average annual return since inception was 11.89% through December 31, 2024. Based on price, it returned 8.94% in 2025 and 7.35% for 2026 year to date through October 27, 2026. That works out to about 11% a year over three years. Its one-year and three-year returns ranked last among 8 similar buffer funds.