IOCT vs. HEQT

Last updated Jun 24, 2026

IOCT (Innovator International Developed Power Buffer ETF- October) and HEQT (Simplify Hedged Equity ETF) are both exchange-traded funds - IOCT is a Options Trading fund actively managed by Innovator, while HEQT is a Equity Hedged fund actively managed by Simplify. Both are actively managed. Over the past 3 years, IOCT returned 12.46%/yr vs 12.95%/yr for HEQT. A 0.68 correlation means they provide meaningful diversification when combined. IOCT charges 0.85%/yr vs 0.43%/yr for HEQT.

Performance

IOCT vs. HEQT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Innovator International Developed Power Buffer ETF- October (IOCT) and Simplify Hedged Equity ETF (HEQT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IOCT achieves a 5.46% return, which is significantly higher than HEQT's 4.02% return.

IOCT

• 1D: -0.74%
• 1M: 0.60%
• YTD: 5.46%
• 6M: 5.28%
• 1Y: 14.36%
• 3Y*: 12.46%
• 5Y*: —
• 10Y*: —

HEQT

• 1D: -0.71%
• 1M: -0.14%
• YTD: 4.02%
• 6M: 3.76%
• 1Y: 13.00%
• 3Y*: 12.95%
• 5Y*: —
• 10Y*: —

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

IOCT vs. HEQT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
IOCT Innovator International Developed Power Buffer ETF- October	5.46%	18.96%	4.88%	17.54%	-6.31%	-0.71%
HEQT Simplify Hedged Equity ETF	4.02%	10.08%	18.30%	16.61%	-8.25%	2.11%

Correlation

The correlation between IOCT and HEQT is 0.69, 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	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.63
Correlation (All Time) Calculated using the full available price history since Nov 2, 2021	0.68

The correlation between IOCT and HEQT has been stable across timeframes, ranging from 0.63 to 0.69 - a consistent structural relationship.

Return for Risk

IOCT vs. HEQT — Risk / Return Rank

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

IOCT

IOCT Risk / Return Rank: 54
IOCT Sharpe Ratio Rank: 51
IOCT Sortino Ratio Rank: 54
IOCT Omega Ratio Rank: 51
IOCT Calmar Ratio Rank: 54
IOCT Martin Ratio Rank: 58

HEQT

HEQT Risk / Return Rank: 63
HEQT Sharpe Ratio Rank: 62
HEQT Sortino Ratio Rank: 62
HEQT Omega Ratio Rank: 70
HEQT Calmar Ratio Rank: 54
HEQT Martin Ratio Rank: 66

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.

IOCT vs. HEQT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Innovator International Developed Power Buffer ETF- October (IOCT) and Simplify Hedged Equity ETF (HEQT). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	IOCT	HEQT	Difference
Sharpe ratio: Return per unit of total volatility	1.62	1.97	-0.35
Sortino ratio: Return per unit of downside risk	2.38	2.77	-0.39
Omega ratio: Gain probability vs. loss probability	1.29	1.40	-0.10
Calmar ratio: Return relative to maximum drawdown	2.47	2.56	-0.10
Martin ratio: Return relative to average drawdown	9.38	11.59	-2.21

IOCT vs. HEQT - Sharpe Ratio Comparison

The current IOCT Sharpe Ratio is 1.62, which is comparable to the HEQT Sharpe Ratio of 1.97. The chart below compares the historical Sharpe Ratios of IOCT and HEQT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

IOCT vs. HEQT - Drawdown Comparison

The maximum IOCT drawdown since its inception was -16.94%, which is greater than HEQT's maximum drawdown of -11.51%. Use the drawdown chart below to compare losses from any high point for IOCT and HEQT.

Drawdown Indicators

	IOCT	HEQT	Difference
Max Drawdown Largest peak-to-trough decline	-16.94%	-11.51%	-5.43%
Max Drawdown (1Y) Largest decline over 1 year	-5.84%	-5.09%	-0.75%
Max Drawdown (3Y) Largest decline over 3 years	-7.54%	-10.57%	+3.03%
Current Drawdown Current decline from peak	-0.74%	-1.12%	+0.38%
Average Drawdown Average peak-to-trough decline	-2.64%	-2.77%	+0.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.53%	1.12%	+0.41%

Volatility

IOCT vs. HEQT - Volatility Comparison

Innovator International Developed Power Buffer ETF- October (IOCT) has a higher volatility of 2.47% compared to Simplify Hedged Equity ETF (HEQT) at 2.06%. This indicates that IOCT's price experiences larger fluctuations and is considered to be riskier than HEQT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IOCT	HEQT	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.47%	2.06%	+0.41%
Volatility (6M) Calculated over the trailing 6-month period	6.75%	5.49%	+1.26%
Volatility (1Y) Calculated over the trailing 1-year period	8.93%	6.64%	+2.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.37%	8.47%	+0.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	9.37%	8.47%	+0.90%

IOCT vs. HEQT - Expense Ratio Comparison

IOCT has a 0.85% expense ratio, which is higher than HEQT's 0.43% expense ratio.

Dividends

IOCT vs. HEQT - Dividend Comparison

IOCT has not paid dividends to shareholders, while HEQT's dividend yield for the trailing twelve months is around 1.20%.

Position	TTM	2025	2024	2023	2022	2021
HEQT Simplify Hedged Equity ETF	1.20%	1.19%	1.29%	4.10%	3.94%	0.27%
IOCT Innovator International Developed Power Buffer ETF- October	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both IOCT and HEQT in my portfolio?

IOCT and HEQT have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IOCT or HEQT?

IOCT has higher volatility (2.47%) compared to HEQT (2.06%). In terms of maximum drawdown, IOCT dropped -16.94% vs HEQT's -11.51%.

Which ETF is better, IOCT or HEQT?

On 3-year performance, HEQT leads with 12.95% vs 12.46% for IOCT. On fees, HEQT is cheaper at 0.43% per year. On volatility, HEQT has been the lower-risk option at 2.06%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IOCT or HEQT?

Over the 3-year period, HEQT has performed better with a 12.95% return vs 12.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IOCT or HEQT?

HEQT is cheaper with a 0.43% expense ratio, compared with 0.85% for IOCT.

Which ETF pays a higher dividend yield, IOCT or HEQT?

HEQT has the higher dividend yield at 1.20%, compared with 0.00% for IOCT.

What is the main difference between IOCT and HEQT?

IOCT is categorized as Options Trading, while HEQT is Equity Hedged. They also come from different issuers: Innovator and Simplify. Their fees differ too: 0.85% for IOCT and 0.43% for HEQT.

Which has better risk-adjusted returns?

HEQT currently has the higher Sharpe Ratio (1.97 vs 1.62), 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.