Buffer vs. Hedged Equity ETFs by the Numbers: Funds, Fees and Flows

By Adam Patti, Chief Executive Officer, VistaShares | Published November 13, 2026

Buffer ETFs and hedged equity ETFs both hold stock exposure alongside options that seek to soften losses, but they are built differently. A buffer fund sets a defined range of outcomes over a fixed period; a hedged equity fund adjusts its option positions as it goes. In the numbers, buffer funds are far more numerous and hold several times the assets. This page compares the two with dated figures.

Figure	Buffer ETFs	Hedged equity ETFs
Funds tracked by ETFIQ (Nov 12, 2026)	524, including 431 on a single outcome period	26
Combined net assets (Nov 12, 2026)	$75.3 billion, the 431 single-period funds	$11.9 billion, 24 of 26 funds reporting
Median yearly fee, per prospectus (Nov 12, 2026)	0.79%, the 431 single-period funds	0.63%
Largest single fund, net assets	$11.1 billion, a laddered fund (Nov 11, 2026)	$4.9 billion (Nov 12, 2026)
Net flows, week to Nov 11, 2026	$242 million in, 293 of 431 single-period funds counted	$11 million in, 7 of 26 funds counted
Where ETFIQ places them (Nov 12, 2026)	Own category: 524 of the 5,146 ETFs ETFIQ covers	Within alternatives: 26 of 90 funds, a category holding $38.9 billion
Main subgroups (Nov 12, 2026)	443 annual, 49 quarterly, 30 laddered, 2 monthly	The most common alternatives strategy, with 26 funds; managed futures (23) and long-short equity (12) come next
Net flows, month to Nov 11, 2026, whole category	Buffer: $1.1 billion in, 268 of 523 funds counted	All alternatives: $496 million in, 25 of 90 funds counted

Sources: buffer counts, ETFIQ ETF statistics, data as of Nov 12, 2026; buffer assets, fee, subgroups and weekly flow, ETFIQ buffer ETFs, as of Nov 12, 2026; largest buffer fund, ETFIQ laddered buffer ETFs, as of Nov 11, 2026; hedged equity figures, ETFIQ hedged equity ETFs, as of Nov 12, 2026; alternatives total, ETFIQ alternatives ETFs, as of Nov 12, 2026; monthly flows, ETFIQ fund flows, as of Nov 11, 2026. Flows count only funds with daily share data.

How do buffer and hedged equity funds differ?

A buffer ETF buys and sells a package of options at the start of an outcome period, usually a year. The package seeks to absorb a stated slice of an index’s losses over that period, such as the first 10% or 15%, and in exchange caps the gains the fund can earn. The terms are set in advance and reset at the end of each period.

A hedged equity ETF has no fixed outcome period. It typically owns stocks and holds put options or option spreads that it rolls on a schedule, often quarterly, with the aim of reducing the depth of a decline. Its results depend on the cost and timing of those trades rather than on a preset buffer and cap. Our comparison of hedged equity vs. buffer ETFs explains the mechanics side by side, and how buffer ETFs work covers the buffer structure.

How many funds are there, and how large?

ETFIQ tracked 524 buffer ETFs as of November 12, 2026, of which 431 run on a single outcome period of their own; the rest hold a ladder of buffer funds or reset monthly. The single-period funds came from 8 issuers. ETFIQ tracked 26 hedged equity ETFs, which it places in its alternatives category. The 431 single-period buffer funds held a combined $75.3 billion, more than six times the $11.9 billion in hedged equity funds.

The largest buffer fund, a laddered fund that holds a series of buffer funds with different start months, held $11.1 billion as of November 11, 2026. The largest hedged equity fund held $4.9 billion. Morningstar counted 420 ETFs in its Defined Outcome category with $78 billion at the end of 2025, and found that 191 of them held less than $50 million.¹ A long tail of small funds is typical of buffer series, since an issuer often launches one fund for each start month.

How do fees compare?

The median single-period buffer ETF charged 0.79% a year as of November 12, 2026, and the median hedged equity ETF charged 0.63%. Morningstar reported an average fee of 0.75% for defined outcome ETFs at the end of 2025.²

Both fees pay for active option management. A buffer fund resets its whole option package once a period; a hedged equity fund rolls its options more often. Neither fee includes the cost of the options themselves, which shows up in the fund’s results rather than as a separate charge.

Where has money been flowing?

In the week to November 11, 2026, single-period buffer ETFs with daily data took in a net $242 million across 293 funds. Hedged equity ETFs took in $11 million, but only 7 of the 26 funds publish daily share data, so that figure covers a small part of the group. Over the month to November 11, 2026, ETFIQ estimated a net inflow of $1.1 billion for the buffer category across 268 funds, and $496 million for all alternatives funds across 25 funds. No monthly figure is published for hedged equity on its own.

Flow estimates multiply each fund’s daily change in shares outstanding by the prior day’s net asset value. Where few funds report daily, as with hedged equity, the figure is a sample rather than a category total.

Which approach fits which goal?

A known range over a set period: buffer funds publish their buffer and cap in advance, so an investor can see the range of outcomes before buying. The range applies only to an investor who holds from the start to the end of the period; our article on buying a buffer ETF mid-period explains why.

Ongoing hedging without a reset date: hedged equity funds can be bought at any time without tracking a period, but the outcome is not defined in advance.

Upside: both give up some gains. Buffer funds do it through a cap; hedged equity funds through the ongoing cost of their options. Our guide to where buffer ETFs fit in a portfolio covers how investors use them. More buffer articles are in the Buffer ETF Guide.

Frequently asked questions

Are there more buffer ETFs or hedged equity ETFs?

Buffer ETFs, by a wide margin. ETFIQ tracked 524 buffer ETFs and 26 hedged equity ETFs on November 12, 2026.

Which holds more assets?

Buffer ETFs. The 431 single-period buffer funds held $75.3 billion, against $11.9 billion for hedged equity funds, as of November 12, 2026.

Which costs less?

At the median, hedged equity funds charged 0.63% and single-period buffer funds 0.79% on November 12, 2026. Individual fund fees vary widely in both groups.

Does a hedged equity fund have a cap?

Not a preset one. Its upside is reduced by the cost of the options it holds, which varies with market conditions, rather than by a cap fixed at the start of a period.

Why are there so many buffer ETFs?

Issuers often launch one fund for each start month, and in several versions with different buffer levels, so a single lineup can include dozens of funds.

Why is the hedged equity flow figure so small?

Only 7 of the 26 hedged equity funds publish daily share data, so the weekly estimate covers a small part of the group.

Adam Patti, Chief Executive Officer of VistaShares, is also the founder of ETFIQ. ETFIQ does not accept payment from ETF issuers, and its figures are calculated from public filings and market data.

Cite this page: Adam Patti, "Buffer vs. Hedged Equity ETFs by the Numbers: Funds, Fees and Flows," VistaShares, updated November 13, 2026, https://www.vistashares.com/buffer-vs-hedged-equity-etfs-by-the-numbers/. Plain-text version.

This material is provided for educational purposes only. It is not investment, legal or tax advice, and it is not a recommendation or an offer to buy or sell any security. Information is drawn from sources believed to be reliable as of the date of publication, is not guaranteed as to accuracy or completeness, and may change without notice. Figures attributed to third parties are their estimates. Projections and forecasts are not guarantees of future results. Investors should consult their own financial, legal and tax professionals before making investment decisions. Investments involve risk, including possible loss of principal. Strategies that use options involve additional risks, including limited participation in market gains, the risk that options do not perform as intended, and changes in distributions. Tax treatment depends on individual circumstances and on current law, which may change.

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