BSEP vs. PAUG

Last updated Jun 9, 2026

BSEP (Innovator U.S. Equity Buffer ETF - September) and PAUG (Innovator U.S. Equity Power Buffer ETF - August) are both Defined Outcome funds from Innovator - BSEP tracks the S&P 500 Index while PAUG tracks the Cboe S&P 500 15% Buffer Protect August Series Index. Both are passively managed. Over the past 5 years, BSEP returned 10.62%/yr vs 9.08%/yr for PAUG. Their correlation of 0.90 suggests significant overlap in exposure. Both charge a 0.79% expense ratio.

Performance

BSEP vs. PAUG - Performance Comparison

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

Returns By Period

In the year-to-date period, BSEP achieves a 6.02% return, which is significantly higher than PAUG's 4.55% return.

BSEP

• 1D: 0.15%
• 1M: 0.68%
• YTD: 6.02%
• 6M: 6.59%
• 1Y: 18.71%
• 3Y*: 16.14%
• 5Y*: 10.62%
• 10Y*: —

PAUG

• 1D: -0.09%
• 1M: 0.53%
• YTD: 4.55%
• 6M: 5.16%
• 1Y: 14.25%
• 3Y*: 14.25%
• 5Y*: 9.08%
• 10Y*: —

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

BSEP vs. PAUG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
BSEP Innovator U.S. Equity Buffer ETF - September	6.02%	14.80%	16.96%	20.94%	-9.20%	14.64%	12.44%	6.84%
PAUG Innovator U.S. Equity Power Buffer ETF - August	4.55%	12.34%	15.37%	17.71%	-6.85%	7.58%	9.82%	4.78%

Correlation

The correlation between BSEP and PAUG is 0.95, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (All Time) Calculated using the full available price history since Sep 3, 2019	0.90

The correlation between BSEP and PAUG has been stable across timeframes, ranging from 0.90 to 0.95 - a consistent structural relationship.

BSEP vs. PAUG - Sectors Allocation Comparison

Sectors	BSEP	PAUG
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

BSEP vs. PAUG — Risk / Return Rank

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

BSEP

BSEP Risk / Return Rank: 82
BSEP Sharpe Ratio Rank: 83
BSEP Sortino Ratio Rank: 85
BSEP Omega Ratio Rank: 85
BSEP Calmar Ratio Rank: 72
BSEP Martin Ratio Rank: 86

PAUG

PAUG Risk / Return Rank: 88
PAUG Sharpe Ratio Rank: 88
PAUG Sortino Ratio Rank: 91
PAUG Omega Ratio Rank: 92
PAUG Calmar Ratio Rank: 80
PAUG Martin Ratio Rank: 91

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.

BSEP vs. PAUG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Innovator U.S. Equity Buffer ETF - September (BSEP) and Innovator U.S. Equity Power Buffer ETF - August (PAUG). 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.

	BSEP	PAUG	Difference
Sharpe ratio: Return per unit of total volatility	2.41	2.56	-0.15
Sortino ratio: Return per unit of downside risk	3.44	3.79	-0.35
Omega ratio: Gain probability vs. loss probability	1.47	1.55	-0.08
Calmar ratio: Return relative to maximum drawdown	3.30	3.62	-0.32
Martin ratio: Return relative to average drawdown	16.41	19.71	-3.29
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BSEP vs. PAUG - Sharpe Ratio Comparison

The current BSEP Sharpe Ratio is 2.41, which is comparable to the PAUG Sharpe Ratio of 2.56. The chart below compares the historical Sharpe Ratios of BSEP and PAUG, 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

	BSEP	PAUG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.41	2.56	-0.15
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.92	1.05	-0.13
Sharpe Ratio (All Time) Calculated using the full available price history	0.88	0.86	+0.02

Drawdowns

BSEP vs. PAUG - Drawdown Comparison

The maximum BSEP drawdown since its inception was -23.98%, which is greater than PAUG's maximum drawdown of -17.88%. Use the drawdown chart below to compare losses from any high point for BSEP and PAUG.

Drawdown Indicators

	BSEP	PAUG	Difference
Max Drawdown Largest peak-to-trough decline	-23.98%	-17.88%	-6.10%
Max Drawdown (1Y) Largest decline over 1 year	-5.70%	-3.96%	-1.74%
Max Drawdown (3Y) Largest decline over 3 years	-13.36%	-10.45%	-2.91%
Max Drawdown (5Y) Largest decline over 5 years	-15.02%	-11.76%	-3.26%
Current Drawdown Current decline from peak	-0.80%	-0.44%	-0.36%
Average Drawdown Average peak-to-trough decline	-2.74%	-1.82%	-0.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.14%	0.72%	+0.42%

Volatility

BSEP vs. PAUG - Volatility Comparison

Innovator U.S. Equity Buffer ETF - September (BSEP) has a higher volatility of 1.26% compared to Innovator U.S. Equity Power Buffer ETF - August (PAUG) at 0.67%. This indicates that BSEP's price experiences larger fluctuations and is considered to be riskier than PAUG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BSEP	PAUG	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.26%	0.67%	+0.59%
Volatility (6M) Calculated over the trailing 6-month period	5.89%	4.21%	+1.68%
Volatility (1Y) Calculated over the trailing 1-year period	7.81%	5.58%	+2.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.62%	8.71%	+2.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.76%	10.59%	+3.17%

BSEP vs. PAUG - Expense Ratio Comparison

Both BSEP and PAUG have an expense ratio of 0.79%.

Dividends

BSEP vs. PAUG - Dividend Comparison

Neither BSEP nor PAUG has paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
BSEP Innovator U.S. Equity Buffer ETF - September	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	1.39%
PAUG Innovator U.S. Equity Power Buffer ETF - August	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	1.33%

Frequently Asked Questions

Can I hold both BSEP and PAUG in my portfolio?

With a correlation of 0.95, BSEP and PAUG move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, BSEP or PAUG?

BSEP has higher volatility (1.26%) compared to PAUG (0.67%). In terms of maximum drawdown, BSEP dropped -23.98% vs PAUG's -17.88%.

Which ETF is better, BSEP or PAUG?

On 5-year performance, BSEP leads with 10.62% vs 9.08% for PAUG. Both ETFs have the same 0.79% expense ratio. On volatility, PAUG has been the lower-risk option at 0.67%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BSEP or PAUG?

Over the 5-year period, BSEP has performed better with a 10.62% return vs 9.08%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BSEP or PAUG?

BSEP and PAUG have the same expense ratio: 0.79% per year.

Which ETF pays a higher dividend yield, BSEP or PAUG?

BSEP and PAUG have nearly identical dividend yields, around 0.00%.

What is the main difference between BSEP and PAUG?

BSEP tracks S&P 500 Index, while PAUG tracks Cboe S&P 500 15% Buffer Protect August Series Index.

Which has better risk-adjusted returns?

PAUG currently has the higher Sharpe Ratio (2.56 vs 2.41), 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.