FSEP ETF — Holdings & Analysis

The FT Vest U.S. Equity Buffer ETF - September (FSEP) is a multi-asset ETF managed by First Trust, with $1.14 billion in assets under management.

It aims to replicate the price return of the SPDR S&P 500 ETF Trust, up to a 14.00% cap, while buffering against the first 10% of losses. With an expense ratio of 0.85%, FSEP seeks to provide a defined outcome strategy over a specific period, from September 22, 2025, to September 18, 2026, making it distinct from traditional index-tracking ETFs.

FT Vest U.S. Equity Buffer ETF - September (FSEP) ETF — Price, Holdings & Analysis

The FT Vest U.S. Equity Buffer ETF - September (FSEP) is a multi-asset ETF managed by First Trust, with $1.14 billion in assets under management. It aims to replicate the price return of the SPDR S&P 500 ETF Trust, up to a 14.00% cap, while buffering against the first 10% of losses. With an expense ratio of 0.85%, FSEP seeks to provide a defined outcome strategy over a specific period, from September 22, 2025, to September 18, 2026, making it distinct from traditional index-tracking ETFs.

ETF Overview

The investment objective of the FT Vest U.S. Equity Buffer ETF - September (the "Fund") is to seek to provide investors with returns (before fees and expenses) that match the price return of the SPDR S&P 500 ETF Trust (the "Underlying ETF"), up to a predetermined upside cap of 14.00% while providing a buffer (before fees and expenses) against the first 10% of Underlying ETF losses, over the period from September 22, 2025 to September 18, 2026.

The FT Vest U.S. Equity Buffer ETF - September (FSEP) employs a unique investment strategy designed to provide investors with a capped upside and a downside buffer linked to the performance of the SPDR S&P 500 ETF Trust. The fund seeks to match the price return of the SPDR S&P 500 ETF Trust, up to a predetermined upside cap of 14.00%, while providing a buffer against the first 10% of losses. This defined outcome strategy is active for a specific period, from September 22, 2025, to September 18, 2026. The ETF achieves this objective by investing in a portfolio of other investment companies. FSEP's sector allocation mirrors that of the S&P 500, with significant exposure to Technology (33.6%), Financial Services (12.5%), and Communication Services (10.5%). This ETF is suitable for investors seeking a degree of downside protection with a willingness to forgo some potential upside gains, relative to a direct investment in the S&P 500.

Risk Metrics

FSEP's risk profile is shaped by its defined outcome strategy and sector concentrations. While the 10% downside buffer mitigates some risk, the 14.00% upside cap limits potential gains. The fund's beta of 0.64 indicates lower volatility compared to the broader market. The expense ratio of 0.85% introduces a cost drag on performance, which is higher than some broad market ETFs. Sector concentration, particularly in Technology (33.6%), exposes the fund to sector-specific risks. The fund's investments are entirely in other investment companies, which introduces a layer of complexity. Investors should carefully consider these factors in light of their own risk tolerance and investment objectives. Past performance does not guarantee future results.

Expense Ratio

0.85%

How Is the Fund Allocated?

Sector	Weight
Technology	33.6%
Financial Services	12.5%
Communication Services	10.5%
Consumer Cyclical	10.1%
Healthcare	9.6%
Industrials	8.6%
Consumer Defensive	5.3%
Energy	3.4%
Utilities	2.5%
Real Estate	2.0%
Basic Materials	1.9%

Country	Weight
Other	100.0%

Dividend Yield

0.00%

JPMorgan Flexible Income ETF (JFLI) — 0.35% expense ratio
FT Vest Laddered Buffer ETF (BUFR) — 0.95% expense ratio
State Street Income Allocation ETF (INKM) — 0.50% expense ratio
iShares LifePath Retirement ETF (IRTR) — 0.08% expense ratio
VanEck Emerging Markets High Yield Bond ETF (HYEM) — 0.40% expense ratio
FT Vest U.S. Small Cap Moderate Buffer ETF - November (SNOV) — 0.90% expense ratio
FT Vest U.S. Equity Moderate Buffer ETF - June (GJUN) — 0.85% expense ratio
FT Vest U.S. Equity Enhance & Moderate Buffer ETF - December (XDEC) — 0.85% expense ratio

First Trust RiverFront Dynamic Emerging Markets ETF (RFEM) (International Equity) — 0.99% expense ratio
FT Energy Income Partners Enhanced Income ETF (EIPI) (Sector Equity) — 1.11% expense ratio
First Trust Europe AlphaDEX Fund (FEP) (International Equity) — 0.80% expense ratio
First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) (International Equity) — 0.80% expense ratio
First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN) (Sector Equity) — 0.56% expense ratio
First Trust Developed Markets ex-US AlphaDEX Fund (FDT) (International Equity) — 0.80% expense ratio

Risk Metrics

Beta: 0.64

Questions & Answers

What is FSEP and what does it track?

FSEP, or the FT Vest U.S. Equity Buffer ETF - September, is a multi-asset ETF managed by First Trust.

It aims to provide investors with returns that match the price return of the SPDR S&P 500 ETF Trust, up to a predetermined upside cap of 14.00%.

What is the expense ratio for FSEP?

The expense ratio for FSEP is 0.85%. This means that for every $1000 invested in the fund, $8.50 is used to cover the fund's operating expenses annually.

While this provides the defined outcome strategy, the expense ratio is higher than passively managed ETFs that track the S&P 500. Investors should consider this cost when evaluating the fund's potential returns relative to its risk management benefits.

What are the top holdings in FSEP?

FSEP's investment strategy involves investing in other investment companies. As such, the top holding is the SPDR S&P 500 ETF Trust.

The fund is designed to track the performance of the SPDR S&P 500 ETF Trust, up to a predetermined upside cap of 14.00%, while providing a buffer against the first 10% of losses of the Underlying ETF.

Is FSEP a good long-term investment?

FSEP's suitability as a long-term investment depends on an investor's specific goals and risk tolerance. The fund's defined outcome strategy, with a capped upside and downside buffer, may be attractive to investors seeking to manage risk over a specific period.

However, the 0.85% expense ratio and the limited upside potential may not be ideal for investors seeking long-term growth.

How does FSEP compare to similar ETFs?

FSEP distinguishes itself through its defined outcome strategy, offering a capped upside of 14.00% and a 10% downside buffer linked to the SPDR S&P 500 ETF Trust's performance over a specific period.

Compared to broad market ETFs, FSEP has a higher expense ratio of 0.85%. Other defined outcome ETFs may offer different buffer levels, upside caps, and target different indices.

Does FSEP pay dividends?

According to the latest data, FSEP has a dividend yield of 0.00%. This indicates that the fund does not currently distribute dividends to its shareholders.

Investors seeking income-generating investments may want to consider other ETFs with a history of dividend payments. However, FSEP's primary objective is to provide a defined outcome based on the performance of the SPDR S&P 500 ETF Trust.