BALT vs. PSEP

Last updated Jun 4, 2026

BALT (Innovator Defined Wealth Shield ETF) and PSEP (Innovator U.S. Equity Power Buffer ETF - September) are both Defined Outcome funds from Innovator - BALT tracks the S&P 500 while PSEP tracks the S&P 500 Index. Both are passively managed. Over the past 3 years, BALT returned 7.27%/yr vs 13.16%/yr for PSEP. A 0.76 correlation means they provide meaningful diversification when combined. BALT charges 0.69%/yr vs 0.79%/yr for PSEP.

Performance

BALT vs. PSEP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Innovator Defined Wealth Shield ETF (BALT) and Innovator U.S. Equity Power Buffer ETF - September (PSEP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BALT achieves a 1.91% return, which is significantly lower than PSEP's 4.91% return.

BALT

• 1D: -0.06%
• 1M: 0.53%
• YTD: 1.91%
• 6M: 2.81%
• 1Y: 6.95%
• 3Y*: 7.27%
• 5Y*: —
• 10Y*: —

PSEP

• 1D: -0.08%
• 1M: 1.67%
• YTD: 4.91%
• 6M: 5.58%
• 1Y: 14.71%
• 3Y*: 13.16%
• 5Y*: 9.36%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

BALT vs. PSEP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
BALT Innovator Defined Wealth Shield ETF	1.91%	6.65%	9.98%	7.45%	2.54%	0.82%
PSEP Innovator U.S. Equity Power Buffer ETF - September	4.91%	11.85%	12.44%	18.84%	-3.74%	3.05%

Correlation

The correlation between BALT and PSEP is 0.74, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.74
Correlation (3Y) Calculated over the trailing 3-year period	0.76
Correlation (All Time) Calculated using the full available price history since Jul 2, 2021	0.76

The correlation between BALT and PSEP has been stable across timeframes, ranging from 0.74 to 0.76 - a consistent structural relationship.

BALT vs. PSEP - Sectors Allocation Comparison

Sectors	BALT	PSEP
Technology	36.2%	36.2%
Financial Services	11.9%	11.9%
Communication Services	10.9%	10.9%
Consumer Cyclical	10.1%	10.1%
Healthcare	8.4%	8.4%
Industrials	8.1%	8.1%
Consumer Defensive	4.9%	4.9%
Energy	3.5%	3.5%
Utilities	2.3%	2.3%
Real Estate	1.9%	1.9%
Basic Materials	1.8%	1.8%

Return for Risk

BALT vs. PSEP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BALT

BALT Risk / Return Rank: 92
BALT Sharpe Ratio Rank: 90
BALT Sortino Ratio Rank: 94
BALT Omega Ratio Rank: 93
BALT Calmar Ratio Rank: 91
BALT Martin Ratio Rank: 91

PSEP

PSEP Risk / Return Rank: 82
PSEP Sharpe Ratio Rank: 80
PSEP Sortino Ratio Rank: 85
PSEP Omega Ratio Rank: 86
PSEP Calmar Ratio Rank: 72
PSEP Martin Ratio Rank: 88

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BALT vs. PSEP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Innovator Defined Wealth Shield ETF (BALT) and Innovator U.S. Equity Power Buffer ETF - September (PSEP). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	BALT	PSEP	Difference
Sharpe ratio: Return per unit of total volatility	3.19	2.59	+0.59
Sortino ratio: Return per unit of downside risk	4.88	3.83	+1.05
Omega ratio: Gain probability vs. loss probability	1.67	1.53	+0.14
Calmar ratio: Return relative to maximum drawdown	6.05	3.62	+2.44
Martin ratio: Return relative to average drawdown	22.58	19.15	+3.43
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BALT vs. PSEP - Sharpe Ratio Comparison

The current BALT Sharpe Ratio is 3.19, which is comparable to the PSEP Sharpe Ratio of 2.59. The chart below compares the historical Sharpe Ratios of BALT and PSEP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BALT	PSEP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.19	2.59	+0.59
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	1.09	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.80	0.96	+0.84

Drawdowns

BALT vs. PSEP - Drawdown Comparison

The maximum BALT drawdown since its inception was -4.89%, smaller than the maximum PSEP drawdown of -17.90%. Use the drawdown chart below to compare losses from any high point for BALT and PSEP.

Drawdown Indicators

	BALT	PSEP	Difference
Max Drawdown Largest peak-to-trough decline	-4.89%	-17.90%	+13.01%
Max Drawdown (1Y) Largest decline over 1 year	-1.15%	-4.08%	+2.93%
Max Drawdown (3Y) Largest decline over 3 years	-4.89%	-9.92%	+5.03%
Max Drawdown (5Y) Largest decline over 5 years	—	-9.92%	—
Current Drawdown Current decline from peak	-0.06%	-0.08%	+0.02%
Average Drawdown Average peak-to-trough decline	-0.34%	-1.56%	+1.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.31%	0.77%	-0.46%

Volatility

BALT vs. PSEP - Volatility Comparison

The current volatility for Innovator Defined Wealth Shield ETF (BALT) is 0.37%, while Innovator U.S. Equity Power Buffer ETF - September (PSEP) has a volatility of 0.70%. This indicates that BALT experiences smaller price fluctuations and is considered to be less risky than PSEP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BALT	PSEP	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.37%	0.70%	-0.33%
Volatility (6M) Calculated over the trailing 6-month period	1.56%	4.25%	-2.69%
Volatility (1Y) Calculated over the trailing 1-year period	2.19%	5.71%	-3.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.32%	8.61%	-5.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.32%	10.12%	-6.80%

BALT vs. PSEP - Expense Ratio Comparison

BALT has a 0.69% expense ratio, which is lower than PSEP's 0.79% expense ratio.

Dividends

BALT vs. PSEP - Dividend Comparison

Neither BALT nor PSEP has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both BALT and PSEP in my portfolio?

BALT and PSEP have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BALT or PSEP?

PSEP has higher volatility (0.70%) compared to BALT (0.37%). In terms of maximum drawdown, BALT dropped -4.89% vs PSEP's -17.90%.

Which ETF is better, BALT or PSEP?

On 3-year performance, PSEP leads with 13.16% vs 7.27% for BALT. On fees, BALT is cheaper at 0.69% per year. On volatility, BALT has been the lower-risk option at 0.37%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BALT or PSEP?

Over the 3-year period, PSEP has performed better with a 13.16% return vs 7.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BALT or PSEP?

BALT is cheaper with a 0.69% expense ratio, compared with 0.79% for PSEP.

Which ETF pays a higher dividend yield, BALT or PSEP?

BALT and PSEP have nearly identical dividend yields, around 0.00%.

What is the main difference between BALT and PSEP?

BALT tracks S&P 500, while PSEP tracks S&P 500 Index. Their fees differ too: 0.69% for BALT and 0.79% for PSEP.

Which has better risk-adjusted returns?

BALT currently has the higher Sharpe Ratio (3.19 vs 2.59), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.