First Trust launches DGJL buffer ETF with fixed 9.37% digital return

Michael Williams Thu, July 23, 2026 at 2:46 PM PDT 5 min read

• SPY +0.10%

Quick Read

• DGJL uses SPY options to deliver a fixed 9.37% digital return as long as SPY doesn't fall more than 10% over its one-year period.
• The digital structure caps gains at 9.37% even if SPY surges 30%, making DGJL most advantageous in flat or mildly declining markets.
• Losses beyond the 10% buffer fall entirely on shareholders, and defined outcomes only hold for investors who buy on day one and hold through July 2027.
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First Trust has rolled out another entry in its lineup of defined-outcome funds, and this one carries an unusual twist. The FT Vest U.S. Equity Buffer & Digital Return ETF – July (NYSEARCA:DGJL) began its first outcome period on July 20, 2026 and lists on the Cboe BZX Exchange. It is an actively managed fund, meaning a team picks the holdings rather than tracking an index, and it is sub-advised by Vest Financial LLC, the firm behind most of First Trust's buffer product family.

A person in a dark suit touches a glowing white tablet against a deep blue background. Above the tablet, the blue holographic letters 'ETF' are displayed, with glowing lines and small red and blue dots extending upwards. Below the tablet, luminous blue wavy lines and candlestick charts represent financial data. The overall scene is dark blue with bright digital elements.

Digitala World / Shutterstock.com

The fund charges total annual operating expenses of 0.85%, which works out to about $85 a year on a $10,000 investment. Shares opened around $29.81 in the first two trading days, according to price data as of July 22, 2026.

What the Fund Does

DGJL is a "buffer" ETF with a "digital return" feature. Both terms need unpacking. The fund uses options tied to the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), the everyday S&P 500 fund, to shape a specific payout pattern over a one-year stretch called the Target Outcome Period, which runs through July 16, 2027.

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Here is the payout, according to the prospectus:

• If SPY finishes the year higher, flat, or down by as much as 10%: DGJL aims to deliver a fixed digital return of 9.37% before fees and expenses. That is the "digital" piece: a single, predetermined payoff rather than the actual index return.
• If SPY falls more than 10%: The first 10 percentage points of loss are absorbed by the buffer, and any loss beyond that flows through to shareholders. So a 25% drop in SPY would translate to roughly a 15% loss for DGJL holders before fees.

Two features matter for anyone considering the fund:

1. Capped upside: The digital return caps gains. Even if SPY rises 30%, DGJL is designed to return only 9.37% (gross of fees).
2. Holding period requirement: These outcomes are engineered to hold only for investors who buy on day one and hold through the full period. Investors who buy mid-period get whatever protection and upside remains at that price, which the issuer notes on the fund's daily website update.

Why It Exists and How It Stacks Up

First Trust and Vest already run a large family of buffer ETFs across every calendar month, and DGJL slots into the July series. The pitch, per the prospectus, is a defined range of outcomes tied to the S&P 500 for investors uneasy about a full-exposure equity bet.

Direct competitors include Innovator's Buffer ETF suite and BlackRock's iShares Large Cap Max Buffer funds. Most defined-outcome buffer ETFs cluster in a similar fee band, so DGJL's 0.85% expense ratio is roughly in line with, and in some cases above, plain-vanilla buffer products that pass through capped upside rather than paying a digital return.

The digital feature is the differentiator. Traditional buffer ETFs give you market returns