IOCT vs. PHEQ

Last updated Jun 4, 2026

IOCT (Innovator International Developed Power Buffer ETF- October) and PHEQ (Parametric Hedged Equity ETF) are both Options Trading funds. Both are actively managed. Over the past year, IOCT returned 13.28% vs 15.97% for PHEQ. A 0.54 correlation means they provide meaningful diversification when combined. IOCT charges 0.85%/yr vs 0.29%/yr for PHEQ.

Performance

IOCT vs. PHEQ - Performance Comparison

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

Returns By Period

In the year-to-date period, IOCT achieves a 5.12% return, which is significantly lower than PHEQ's 5.67% return.

IOCT

• 1D: -0.28%
• 1M: 2.01%
• YTD: 5.12%
• 6M: 6.59%
• 1Y: 13.28%
• 3Y*: 12.41%
• 5Y*: —
• 10Y*: —

PHEQ

• 1D: -0.18%
• 1M: 1.64%
• YTD: 5.67%
• 6M: 6.14%
• 1Y: 15.97%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

IOCT vs. PHEQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
IOCT Innovator International Developed Power Buffer ETF- October	5.12%	18.96%	4.88%	8.38%
PHEQ Parametric Hedged Equity ETF	5.67%	11.76%	14.94%	7.19%

Correlation

The correlation between IOCT and PHEQ is 0.64, 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	0.64
Correlation (All Time) Calculated using the full available price history since Oct 20, 2023	0.54

The correlation between IOCT and PHEQ shifts across timeframes, from 0.54 (all time) to 0.64 (1 year), reflecting how their relationship changes across market environments.

IOCT vs. PHEQ - Sectors Allocation Comparison

Sectors	IOCT	PHEQ
Financial Services	24.7%	11.3%
Industrials	19.8%	8.3%
Healthcare	10.6%	8.6%
Technology	10.3%	35.4%
Consumer Cyclical	7.7%	10.2%
Consumer Defensive	6.7%	5.0%
Basic Materials	5.9%	1.7%
Communication Services	4.5%	11.8%
Energy	4.0%	3.7%
Utilities	4.0%	2.4%
Real Estate	1.9%	1.6%

Return for Risk

IOCT vs. PHEQ — Risk / Return Rank

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

IOCT

IOCT Risk / Return Rank: 46
IOCT Sharpe Ratio Rank: 44
IOCT Sortino Ratio Rank: 45
IOCT Omega Ratio Rank: 43
IOCT Calmar Ratio Rank: 47
IOCT Martin Ratio Rank: 52

PHEQ

PHEQ Risk / Return Rank: 82
PHEQ Sharpe Ratio Rank: 80
PHEQ Sortino Ratio Rank: 86
PHEQ Omega Ratio Rank: 84
PHEQ Calmar Ratio Rank: 75
PHEQ Martin Ratio Rank: 84

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. PHEQ - Risk-Adjusted Trends Comparison

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

	IOCT	PHEQ	Difference
Sharpe ratio Return per unit of total volatility	1.51	2.62	-1.10
Sortino ratio Return per unit of downside risk	2.22	3.92	-1.70
Omega ratio Gain probability vs. loss probability	1.27	1.52	-0.24
Calmar ratio Return relative to maximum drawdown	2.28	3.77	-1.48
Martin ratio Return relative to average drawdown	8.63	17.21	-8.58
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IOCT vs. PHEQ - Sharpe Ratio Comparison

The current IOCT Sharpe Ratio is 1.51, which is lower than the PHEQ Sharpe Ratio of 2.62. The chart below compares the historical Sharpe Ratios of IOCT and PHEQ, 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

	IOCT	PHEQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.51	2.62	-1.10
Sharpe Ratio (All Time) Calculated using the full available price history	0.90	1.80	-0.90

Drawdowns

IOCT vs. PHEQ - Drawdown Comparison

The maximum IOCT drawdown since its inception was -16.94%, which is greater than PHEQ's maximum drawdown of -12.55%. Use the drawdown chart below to compare losses from any high point for IOCT and PHEQ.

Drawdown Indicators

	IOCT	PHEQ	Difference
Max Drawdown Largest peak-to-trough decline	-16.94%	-12.55%	-4.39%
Max Drawdown (1Y) Largest decline over 1 year	-5.84%	-4.26%	-1.58%
Max Drawdown (3Y) Largest decline over 3 years	-7.54%	—	—
Current Drawdown Current decline from peak	-0.28%	-0.18%	-0.10%
Average Drawdown Average peak-to-trough decline	-2.67%	-0.97%	-1.70%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.54%	0.93%	+0.61%

Volatility

IOCT vs. PHEQ - Volatility Comparison

Innovator International Developed Power Buffer ETF- October (IOCT) has a higher volatility of 2.15% compared to Parametric Hedged Equity ETF (PHEQ) at 1.05%. This indicates that IOCT's price experiences larger fluctuations and is considered to be riskier than PHEQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IOCT	PHEQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.15%	1.05%	+1.10%
Volatility (6M) Calculated over the trailing 6-month period	6.44%	4.56%	+1.88%
Volatility (1Y) Calculated over the trailing 1-year period	8.83%	6.16%	+2.67%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.36%	8.62%	+0.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	9.36%	8.62%	+0.74%

IOCT vs. PHEQ - Expense Ratio Comparison

IOCT has a 0.85% expense ratio, which is higher than PHEQ's 0.29% expense ratio.

Dividends

IOCT vs. PHEQ - Dividend Comparison

IOCT has not paid dividends to shareholders, while PHEQ's dividend yield for the trailing twelve months is around 1.03%.

Position	TTM	2025	2024	2023
IOCT Innovator International Developed Power Buffer ETF- October	0.00%	0.00%	0.00%	0.00%
PHEQ Parametric Hedged Equity ETF	1.03%	1.19%	1.39%	1.73%

Frequently Asked Questions

Can I hold both IOCT and PHEQ in my portfolio?

IOCT and PHEQ have a correlation of 0.64, 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 PHEQ?

IOCT has higher volatility (2.15%) compared to PHEQ (1.05%). In terms of maximum drawdown, IOCT dropped -16.94% vs PHEQ's -12.55%.

Which ETF is better, IOCT or PHEQ?

On 1-year performance, PHEQ leads with 15.97% vs 13.28% for IOCT. On fees, PHEQ is cheaper at 0.29% per year. On volatility, PHEQ has been the lower-risk option at 1.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IOCT or PHEQ?

Over the 1-year period, PHEQ has performed better with a 15.97% return vs 13.28%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IOCT or PHEQ?

PHEQ is cheaper with a 0.29% expense ratio, compared with 0.85% for IOCT.

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

PHEQ has the higher dividend yield at 1.03%, compared with 0.00% for IOCT.

What is the main difference between IOCT and PHEQ?

They also come from different issuers: Innovator and Parametric. Their fees differ too: 0.85% for IOCT and 0.29% for PHEQ.

Which has better risk-adjusted returns?

PHEQ currently has the higher Sharpe Ratio (2.62 vs 1.51), 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.