Three Funds, One Launch Date, Three Different Promises
On April 11, 2024, three Fidelity ETFs listed on the same day. All three hold a broad portfolio of large U.S. stocks and use S&P 500 index options, but each uses them for a different job. FYEE sells call options to generate income. FBUF buys put options for protection and sells call options to help pay for them. This pairing is called a “collar,” and it gives up some upside. FHEQ buys put options and sells no calls, so its upside isn't capped on paper. It pays for the protection out of its own return instead.
Two quick definitions. A put option is a contract that pays off if the market falls below a set level, which makes it a form of insurance. Selling a call option means selling someone the market's gains above a set level in exchange for cash now.
This piece checks each fund against its own promise, not against the other two. FBUF is the main subject, with FHEQ, FYEE and SPY (the S&P 500 yardstick) as comparisons. Think of it like insurance: you don't judge a policy by whether the house happened to burn down.
The Short Answer: What Protection Cost
From launch through the October 29, 2026 close, FBUF returned +37.2% with distributions reinvested. SPY returned +52.9% over the same period. FBUF kept about 70% of the market's return. In exchange, it fell 11.1% in the spring 2025 sell-off, while SPY fell 18.8%.
FBUF listed on April 11, 2024, so it has limited live performance data. That makes it harder to judge across a full market cycle. This window has one sharp drop and one fast recovery. It is not a long-term record.
Performance and yield figures are historical and may change. Total return includes price movement and distributions where available. Past performance does not guarantee future results. Yield is not the same as total return.
Fund Snapshot (as of the October 29, 2026 close)
| Metric | FBUF | FHEQ | FYEE | SPY |
| Job | Buffer (buys puts, sells calls) | Hedge (buys puts, no calls) | Income (sells calls) | Yardstick, no options |
| Current price | $33.60 | $33.48 | $29.94 | $769.36 |
| 52-week range (intraday) | $29.62 – $33.97 | $28.84 – $34.60 | $26.29 – $30.52 | $629.28 – $781.62 |
| Net expense ratio (per prospectus) | 0.48% | 0.48% | 0.28% | 0.09% |
| AUM | $27M | $1.0B | $318M | $814.7B |
| Trailing 12-month yield | 0.57% | 0.59% | 9.12% | 0.99% |
| Distribution frequency | Quarterly | Quarterly | Quarterly | Quarterly |
These are strategy profiles, not recommendations. Suitability depends on individual objectives, risk tolerance, tax situation, time horizon, and broader portfolio construction.
Expense ratios are net of Fidelity's contractual fee waivers: before them, FBUF and FHEQ run 0.52% and FYEE 0.32%. Expense ratios and yields can change. FBUF is the smallest of the four by a wide margin, with $27M in assets compared with FHEQ's $1.0B.
How FBUF Is Built
FBUF holds a broad large-cap stock portfolio chosen by Fidelity's quantitative team. Its prospectus says the portfolio can include foreign stocks. On top of the stocks, it buys a ladder of S&P 500 index puts on a monthly roll schedule and sells S&P 500 index calls that it generally rolls weekly. The call premiums largely pay for the puts.
The result: the puts soften large declines, and the sold calls give away part of the gains in strong rallies.
One clarification. FBUF is not a defined-outcome “buffer ETF” with a fixed buffer level and a set reset date. Its protection is managed on an ongoing basis, so the level of protection isn't promised in advance.
