Answered from ETFIQ data as of .
What is a buffer ETF?
A buffer ETF, also called a defined outcome ETF, absorbs a stated range of an index's losses over a set period in exchange for a ceiling on the gain. ETFIQ tracks 245 of them, and on Sep 4, 2026, 87 had already reached that ceiling.
The fund buys options on a reference index, usually the S&P 500 through SPY, that pay off in a shape decided on the first day of the period. A typical fund absorbs the first 9 or 15 percent of index losses and caps the gain somewhere above 10 percent. Both numbers are struck from option prices on day one, so the same fund carries a different cap each year.
Two things surprise buyers. The protection applies over the whole outcome period, not day to day, so a fund bought halfway through has different terms than the ones advertised on the first day. And once the index has risen past the cap, there is no more upside to collect however far it climbs; the fund is waiting for the reset.
ETFIQ places every fund on one band from its buffer floor to its cap, so funds from different issuers can be read the same way. The vocabulary is here.
On the desk today
| Ticker | Fund | Buffer | Can still gain | Fall before buffer | Period ends |
|---|---|---|---|---|---|
| DSEP | FT Vest U.S. Equity Deep Buffer ETF - September | 0.2% | 14.7% | Sep 18, 2026 | |
| FSEP | FT Vest U.S. Equity Buffer ETF - September | 0.4% | 12.0% | Sep 18, 2026 | |
| GSEP | FT Vest U.S. Equity Moderate Buffer ETF - September | 0.2% | 10.2% | Sep 18, 2026 | |
| QSPT | FT Vest Nasdaq-100® Buffer ETF - September | 0.5% | 14.2% | Sep 18, 2026 | |
| RSSE | FT Vest U.S. Equity Equal Weight Buffer ETF - September | 0.4% | 12.4% | Sep 18, 2026 | |
| SEPM | FT Vest U.S. Equity Max Buffer ETF - September | 0.1% | 6.5% | Sep 18, 2026 | |
| SQMX | FT Vest U.S. Equity Quarterly Max Buffer ETF | 0.7% | 2.2% | Sep 18, 2026 | |
| TSEP | FT Vest Emerging Markets Buffer ETF - September | 0.1% | 14.7% | Sep 18, 2026 |
Where to next
ETFIQ is an independent publisher of exchange-traded fund data and makes no recommendations. Every figure is stated arithmetic on published data. Standards and sources
Cite this page. ETFIQ, What is a buffer ETF?, data as of Sep 4, 2026. https://etfiq.com/questions/what-is-a-buffer-etf.html Free to use with attribution; the underlying files are at Open data.