BUFP vs. USEP

Last updated Jun 4, 2026

BUFP (PGIM Laddered S&P 500 Buffer 12 ETF) and USEP (Innovator U.S. Equity Ultra Buffer ETF - September) are both Defined Outcome funds - BUFP tracks the S&P 500 while USEP tracks the S&P 500 Index. Both are passively managed. Over the past year, BUFP returned 17.24% vs 14.66% for USEP. Their correlation of 0.90 suggests significant overlap in exposure. BUFP charges 0.50%/yr vs 0.79%/yr for USEP.

Performance

BUFP vs. USEP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PGIM Laddered S&P 500 Buffer 12 ETF (BUFP) and Innovator U.S. Equity Ultra Buffer ETF - September (USEP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BUFP achieves a 6.23% return, which is significantly higher than USEP's 4.73% return.

BUFP

• 1D: -0.22%
• 1M: 2.04%
• YTD: 6.23%
• 6M: 7.00%
• 1Y: 17.24%
• 3Y*: —
• 5Y*: —
• 10Y*: —

USEP

• 1D: -0.08%
• 1M: 1.65%
• YTD: 4.73%
• 6M: 5.26%
• 1Y: 14.66%
• 3Y*: 13.11%
• 5Y*: 8.01%
• 10Y*: —

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

BUFP vs. USEP - Yearly Performance Comparison

	2026 (YTD)	2025	2024
BUFP PGIM Laddered S&P 500 Buffer 12 ETF	6.23%	12.92%	6.36%
USEP Innovator U.S. Equity Ultra Buffer ETF - September	4.73%	11.75%	4.54%

Correlation

The correlation between BUFP and USEP is 0.92, 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	0.92
Correlation (All Time) Calculated using the full available price history since Jun 14, 2024	0.90

The correlation between BUFP and USEP has been stable across timeframes, ranging from 0.90 to 0.92 - a consistent structural relationship.

BUFP vs. USEP - Sectors Allocation Comparison

Sectors	BUFP	USEP
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

BUFP vs. USEP — Risk / Return Rank

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

BUFP

BUFP Risk / Return Rank: 86
BUFP Sharpe Ratio Rank: 84
BUFP Sortino Ratio Rank: 89
BUFP Omega Ratio Rank: 89
BUFP Calmar Ratio Rank: 77
BUFP Martin Ratio Rank: 91

USEP

USEP Risk / Return Rank: 84
USEP Sharpe Ratio Rank: 83
USEP Sortino Ratio Rank: 87
USEP Omega Ratio Rank: 88
USEP Calmar Ratio Rank: 74
USEP Martin Ratio Rank: 87

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.

BUFP vs. USEP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PGIM Laddered S&P 500 Buffer 12 ETF (BUFP) and Innovator U.S. Equity Ultra Buffer ETF - September (USEP). 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.

	BUFP	USEP	Difference
Sharpe ratio: Return per unit of total volatility	2.77	2.70	+0.07
Sortino ratio: Return per unit of downside risk	4.12	3.98	+0.14
Omega ratio: Gain probability vs. loss probability	1.58	1.55	+0.03
Calmar ratio: Return relative to maximum drawdown	3.93	3.66	+0.27
Martin ratio: Return relative to average drawdown	21.96	18.85	+3.11
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BUFP vs. USEP - Sharpe Ratio Comparison

The current BUFP Sharpe Ratio is 2.77, which is comparable to the USEP Sharpe Ratio of 2.70. The chart below compares the historical Sharpe Ratios of BUFP and USEP, 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

	BUFP	USEP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.77	2.70	+0.07
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	1.09	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.40	1.00	+0.40

Drawdowns

BUFP vs. USEP - Drawdown Comparison

The maximum BUFP drawdown since its inception was -11.98%, smaller than the maximum USEP drawdown of -13.37%. Use the drawdown chart below to compare losses from any high point for BUFP and USEP.

Drawdown Indicators

	BUFP	USEP	Difference
Max Drawdown Largest peak-to-trough decline	-11.98%	-13.37%	+1.39%
Max Drawdown (1Y) Largest decline over 1 year	-4.41%	-4.03%	-0.38%
Max Drawdown (3Y) Largest decline over 3 years	—	-9.72%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-11.84%	—
Current Drawdown Current decline from peak	-0.22%	-0.08%	-0.14%
Average Drawdown Average peak-to-trough decline	-1.00%	-1.89%	+0.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.79%	0.78%	+0.01%

Volatility

BUFP vs. USEP - Volatility Comparison

PGIM Laddered S&P 500 Buffer 12 ETF (BUFP) has a higher volatility of 0.95% compared to Innovator U.S. Equity Ultra Buffer ETF - September (USEP) at 0.62%. This indicates that BUFP's price experiences larger fluctuations and is considered to be riskier than USEP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BUFP	USEP	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.95%	0.62%	+0.33%
Volatility (6M) Calculated over the trailing 6-month period	4.82%	4.00%	+0.82%
Volatility (1Y) Calculated over the trailing 1-year period	6.27%	5.47%	+0.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.49%	7.41%	+2.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	9.49%	8.06%	+1.43%

BUFP vs. USEP - Expense Ratio Comparison

BUFP has a 0.50% expense ratio, which is lower than USEP's 0.79% expense ratio.

Dividends

BUFP vs. USEP - Dividend Comparison

BUFP's dividend yield for the trailing twelve months is around 0.01%, while USEP has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
BUFP PGIM Laddered S&P 500 Buffer 12 ETF	0.01%	0.01%	0.02%	0.00%	0.00%	0.00%	0.00%	0.00%
USEP Innovator U.S. Equity Ultra Buffer ETF - September	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.64%

Frequently Asked Questions

Can I hold both BUFP and USEP in my portfolio?

With a correlation of 0.92, BUFP and USEP 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, BUFP or USEP?

BUFP has higher volatility (0.95%) compared to USEP (0.62%). In terms of maximum drawdown, BUFP dropped -11.98% vs USEP's -13.37%.

Which ETF is better, BUFP or USEP?

On 1-year performance, BUFP leads with 17.24% vs 14.66% for USEP. On fees, BUFP is cheaper at 0.50% per year. On volatility, USEP has been the lower-risk option at 0.62%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BUFP or USEP?

Over the 1-year period, BUFP has performed better with a 17.24% return vs 14.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BUFP or USEP?

BUFP is cheaper with a 0.50% expense ratio, compared with 0.79% for USEP.

Which ETF pays a higher dividend yield, BUFP or USEP?

BUFP has the higher dividend yield at 0.01%, compared with 0.00% for USEP.

What is the main difference between BUFP and USEP?

BUFP tracks S&P 500, while USEP tracks S&P 500 Index. They also come from different issuers: PGIM and Innovator. Their fees differ too: 0.50% for BUFP and 0.79% for USEP.

Which has better risk-adjusted returns?

BUFP currently has the higher Sharpe Ratio (2.77 vs 2.70), 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.