BUFF vs. BSTP

Last updated Jun 4, 2026

BUFF (Innovator Laddered Allocation Power Buffer ETF) and BSTP (Innovator Buffer Step-Up Strategy ETF) are both exchange-traded funds - BUFF is a Defined Outcome fund tracking the Refinitiv Laddered Power Buffer Strategy Index, while BSTP is a Options Trading fund tracking the S&P 500. Both are passively managed. Over the past 3 years, BUFF returned 12.47%/yr vs 14.35%/yr for BSTP. Their correlation of 0.94 suggests significant overlap in exposure. Both charge a 0.89% expense ratio.

Performance

BUFF vs. BSTP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Innovator Laddered Allocation Power Buffer ETF (BUFF) and Innovator Buffer Step-Up Strategy ETF (BSTP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BUFF achieves a 5.42% return, which is significantly lower than BSTP's 6.07% return.

BUFF

• 1D: -0.27%
• 1M: 1.68%
• YTD: 5.42%
• 6M: 5.90%
• 1Y: 14.36%
• 3Y*: 12.47%
• 5Y*: 8.71%
• 10Y*: —

BSTP

• 1D: -0.32%
• 1M: 3.05%
• YTD: 6.07%
• 6M: 6.56%
• 1Y: 16.71%
• 3Y*: 14.35%
• 5Y*: —
• 10Y*: —

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

BUFF vs. BSTP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
BUFF Innovator Laddered Allocation Power Buffer ETF	5.42%	11.02%	12.05%	16.51%	0.29%
BSTP Innovator Buffer Step-Up Strategy ETF	6.07%	11.80%	16.70%	18.14%	-4.95%

Correlation

The correlation between BUFF and BSTP is 0.89, 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	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (All Time) Calculated using the full available price history since Mar 9, 2022	0.94

The correlation between BUFF and BSTP has been stable across timeframes, ranging from 0.89 to 0.94 - a consistent structural relationship.

BUFF vs. BSTP - Sectors Allocation Comparison

Sectors	BUFF	BSTP
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

BUFF vs. BSTP — Risk / Return Rank

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

BUFF

BUFF Risk / Return Rank: 86
BUFF Sharpe Ratio Rank: 84
BUFF Sortino Ratio Rank: 90
BUFF Omega Ratio Rank: 89
BUFF Calmar Ratio Rank: 78
BUFF Martin Ratio Rank: 90

BSTP

BSTP Risk / Return Rank: 65
BSTP Sharpe Ratio Rank: 63
BSTP Sortino Ratio Rank: 65
BSTP Omega Ratio Rank: 69
BSTP Calmar Ratio Rank: 55
BSTP Martin Ratio Rank: 71

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.

BUFF vs. BSTP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Innovator Laddered Allocation Power Buffer ETF (BUFF) and Innovator Buffer Step-Up Strategy ETF (BSTP). 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.

	BUFF	BSTP	Difference
Sharpe ratio: Return per unit of total volatility	2.80	2.12	+0.68
Sortino ratio: Return per unit of downside risk	4.24	3.01	+1.23
Omega ratio: Gain probability vs. loss probability	1.58	1.41	+0.17
Calmar ratio: Return relative to maximum drawdown	4.02	2.69	+1.33
Martin ratio: Return relative to average drawdown	21.50	13.18	+8.32
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BUFF vs. BSTP - Sharpe Ratio Comparison

The current BUFF Sharpe Ratio is 2.80, which is higher than the BSTP Sharpe Ratio of 2.12. The chart below compares the historical Sharpe Ratios of BUFF and BSTP, 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

	BUFF	BSTP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.80	2.12	+0.68
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.04	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.49	0.91	-0.42

Drawdowns

BUFF vs. BSTP - Drawdown Comparison

The maximum BUFF drawdown since its inception was -46.23%, which is greater than BSTP's maximum drawdown of -16.69%. Use the drawdown chart below to compare losses from any high point for BUFF and BSTP.

Drawdown Indicators

	BUFF	BSTP	Difference
Max Drawdown Largest peak-to-trough decline	-46.23%	-16.69%	-29.54%
Max Drawdown (1Y) Largest decline over 1 year	-3.58%	-6.23%	+2.65%
Max Drawdown (3Y) Largest decline over 3 years	-10.24%	-13.69%	+3.45%
Max Drawdown (5Y) Largest decline over 5 years	-10.24%	—	—
Current Drawdown Current decline from peak	-0.27%	-0.32%	+0.05%
Average Drawdown Average peak-to-trough decline	-6.18%	-3.52%	-2.66%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.67%	1.27%	-0.60%

Volatility

BUFF vs. BSTP - Volatility Comparison

The current volatility for Innovator Laddered Allocation Power Buffer ETF (BUFF) is 1.02%, while Innovator Buffer Step-Up Strategy ETF (BSTP) has a volatility of 1.52%. This indicates that BUFF experiences smaller price fluctuations and is considered to be less risky than BSTP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BUFF	BSTP	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.02%	1.52%	-0.50%
Volatility (6M) Calculated over the trailing 6-month period	3.83%	6.15%	-2.32%
Volatility (1Y) Calculated over the trailing 1-year period	5.15%	7.93%	-2.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.41%	12.11%	-3.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.67%	12.11%	+5.56%

BUFF vs. BSTP - Expense Ratio Comparison

Both BUFF and BSTP have an expense ratio of 0.89%.

Dividends

BUFF vs. BSTP - Dividend Comparison

Neither BUFF nor BSTP has paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
BSTP Innovator Buffer Step-Up Strategy ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
BUFF Innovator Laddered Allocation Power Buffer ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	1.78%	1.26%	1.74%	1.55%	0.18%

Frequently Asked Questions

Can I hold both BUFF and BSTP in my portfolio?

BUFF and BSTP have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BUFF or BSTP?

BSTP has higher volatility (1.52%) compared to BUFF (1.02%). In terms of maximum drawdown, BUFF dropped -46.23% vs BSTP's -16.69%.

Which ETF is better, BUFF or BSTP?

On 3-year performance, BSTP leads with 14.35% vs 12.47% for BUFF. Both ETFs have the same 0.89% expense ratio. On volatility, BUFF has been the lower-risk option at 1.02%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BUFF or BSTP?

Over the 3-year period, BSTP has performed better with a 14.35% return vs 12.47%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BUFF or BSTP?

BUFF and BSTP have the same expense ratio: 0.89% per year.

Which ETF pays a higher dividend yield, BUFF or BSTP?

BUFF and BSTP have nearly identical dividend yields, around 0.00%.

What is the main difference between BUFF and BSTP?

BUFF is categorized as Defined Outcome, while BSTP is Options Trading. BUFF tracks Refinitiv Laddered Power Buffer Strategy Index, while BSTP tracks S&P 500.

Which has better risk-adjusted returns?

BUFF currently has the higher Sharpe Ratio (2.80 vs 2.12), 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.