First Trust Launches Sept. Buffer ETFs

First Trust moves closer to completing its family of defined outcome funds tied to the S&P 500 Index.

Reviewed by: Heather Bell
Edited by: Heather Bell

Today, First Trust launched two more ETFs in its family of defined outcome ETFs. The FT Cboe Vest U.S. Equity Buffer ETF – September (FSEP) and the FT Cboe Vest U.S. Equity Deep Buffer ETF – September (DSEP) bring the lineup that much closer to completion, with only the months of October, December, January, March and April missing now.

Both ETFs come with an expense ratio of 0.85% and list on Cboe Global Markets, the parent company of

DSEP and FSEP allow investors to participate in the upside of the market up to a cap that is reset annually while receiving protection from declines up to a certain percentage.

How They Work

The funds cover an outcome period ranging from Sept. 21, 2020 through Sept. 17, 2021. FSEP will allow investors to receive upside returns up to 16.50% before fees while protecting against declines of up to 10% before fees. Meanwhile, DSEP will allow investors to experience positive returns of up to 9.25% before fees while protecting them from declines of more than 5% and up to 30% before fees.

The actively managed portfolios for both DSEP and FSEP hold baskets of flexible exchange options (FLEX) tied to the SPDR S&P 500 ETF Trust (SPY) with the overall aim of reflecting the performance of SPY within their predetermined limits.

The family of 12 existing ETFs currently has $1.4 billion in assets under management. The new additions bring the total number of funds in the family to 14.

Contact Heather Bell at [email protected]

Heather Bell is a former managing editor of She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.