KDEC vs. VGUS

Last updated Jun 4, 2026

KDEC (Innovator U.S. Small Cap Power Buffer ETF - December) and VGUS (Vanguard Ultra-Short Treasury ETF) are both exchange-traded funds - KDEC is a Defined Outcome fund actively managed by Innovator, while VGUS is a Ultrashort Bond fund tracking the Bloomberg Short Treasury Index. KDEC is actively managed, while VGUS is passively managed. Over the past year, KDEC returned 18.00% vs 3.95% for VGUS. At a correlation of -0.18, they often move in opposite directions. KDEC charges 0.79%/yr vs 0.07%/yr for VGUS.

Performance

KDEC vs. VGUS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Innovator U.S. Small Cap Power Buffer ETF - December (KDEC) and Vanguard Ultra-Short Treasury ETF (VGUS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KDEC achieves a 8.83% return, which is significantly higher than VGUS's 1.44% return.

KDEC

• 1D: -0.40%
• 1M: 1.75%
• YTD: 8.83%
• 6M: 8.54%
• 1Y: 18.00%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VGUS

• 1D: 0.01%
• 1M: 0.28%
• YTD: 1.44%
• 6M: 1.76%
• 1Y: 3.95%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

KDEC vs. VGUS - Yearly Performance Comparison

	2026 (YTD)	2025
KDEC Innovator U.S. Small Cap Power Buffer ETF - December	8.83%	4.81%
VGUS Vanguard Ultra-Short Treasury ETF	1.44%	3.77%

Correlation

The correlation between KDEC and VGUS is -0.14, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.14
Correlation (All Time) Calculated using the full available price history since Feb 12, 2025	-0.18

Return for Risk

KDEC vs. VGUS — Risk / Return Rank

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

KDEC

KDEC Risk / Return Rank: 61
KDEC Sharpe Ratio Rank: 57
KDEC Sortino Ratio Rank: 60
KDEC Omega Ratio Rank: 55
KDEC Calmar Ratio Rank: 69
KDEC Martin Ratio Rank: 62

VGUS

VGUS Risk / Return Rank: 100
VGUS Sharpe Ratio Rank: 100
VGUS Sortino Ratio Rank: 100
VGUS Omega Ratio Rank: 100
VGUS Calmar Ratio Rank: 99
VGUS Martin Ratio Rank: 100

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.

KDEC vs. VGUS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Innovator U.S. Small Cap Power Buffer ETF - December (KDEC) and Vanguard Ultra-Short Treasury ETF (VGUS). 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.

	KDEC	VGUS	Difference
Sharpe ratio: Return per unit of total volatility	1.91	12.10	-10.19
Sortino ratio: Return per unit of downside risk	2.79	35.16	-32.38
Omega ratio: Gain probability vs. loss probability	1.34	10.91	-9.57
Calmar ratio: Return relative to maximum drawdown	3.36	54.56	-51.20
Martin ratio: Return relative to average drawdown	11.06	414.20	-403.14
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

KDEC vs. VGUS - Sharpe Ratio Comparison

The current KDEC Sharpe Ratio is 1.91, which is lower than the VGUS Sharpe Ratio of 12.10. The chart below compares the historical Sharpe Ratios of KDEC and VGUS, 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

	KDEC	VGUS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.91	12.10	-10.19
Sharpe Ratio (All Time) Calculated using the full available price history	0.60	11.72	-11.13

Drawdowns

KDEC vs. VGUS - Drawdown Comparison

The maximum KDEC drawdown since its inception was -16.52%, which is greater than VGUS's maximum drawdown of -0.07%. Use the drawdown chart below to compare losses from any high point for KDEC and VGUS.

Drawdown Indicators

	KDEC	VGUS	Difference
Max Drawdown Largest peak-to-trough decline	-16.52%	-0.07%	-16.45%
Max Drawdown (1Y) Largest decline over 1 year	-5.38%	-0.07%	-5.31%
Current Drawdown Current decline from peak	-0.40%	0.00%	-0.40%
Average Drawdown Average peak-to-trough decline	-3.05%	-0.00%	-3.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.63%	0.01%	+1.62%

Volatility

KDEC vs. VGUS - Volatility Comparison

Innovator U.S. Small Cap Power Buffer ETF - December (KDEC) has a higher volatility of 2.06% compared to Vanguard Ultra-Short Treasury ETF (VGUS) at 0.11%. This indicates that KDEC's price experiences larger fluctuations and is considered to be riskier than VGUS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KDEC	VGUS	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.06%	0.11%	+1.95%
Volatility (6M) Calculated over the trailing 6-month period	6.66%	0.18%	+6.48%
Volatility (1Y) Calculated over the trailing 1-year period	9.51%	0.33%	+9.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.39%	0.34%	+12.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.39%	0.34%	+12.05%

KDEC vs. VGUS - Expense Ratio Comparison

KDEC has a 0.79% expense ratio, which is higher than VGUS's 0.07% expense ratio.

Dividends

KDEC vs. VGUS - Dividend Comparison

KDEC has not paid dividends to shareholders, while VGUS's dividend yield for the trailing twelve months is around 3.61%.

Position	TTM	2025
KDEC Innovator U.S. Small Cap Power Buffer ETF - December	0.00%	0.00%
VGUS Vanguard Ultra-Short Treasury ETF	3.61%	3.12%

Frequently Asked Questions

Can I hold both KDEC and VGUS in my portfolio?

KDEC and VGUS have a correlation of -0.14, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KDEC or VGUS?

KDEC has higher volatility (2.06%) compared to VGUS (0.11%). In terms of maximum drawdown, KDEC dropped -16.52% vs VGUS's -0.07%.

Which ETF is better, KDEC or VGUS?

On 1-year performance, KDEC leads with 18.00% vs 3.95% for VGUS. On fees, VGUS is cheaper at 0.07% per year. On volatility, VGUS has been the lower-risk option at 0.11%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KDEC or VGUS?

Over the 1-year period, KDEC has performed better with a 18.00% return vs 3.95%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KDEC or VGUS?

VGUS is cheaper with a 0.07% expense ratio, compared with 0.79% for KDEC.

Which ETF pays a higher dividend yield, KDEC or VGUS?

VGUS has the higher dividend yield at 3.61%, compared with 0.00% for KDEC.

What is the main difference between KDEC and VGUS?

KDEC is categorized as Defined Outcome, while VGUS is Ultrashort Bond. They also come from different issuers: Innovator and Vanguard. Their fees differ too: 0.79% for KDEC and 0.07% for VGUS.

Which has better risk-adjusted returns?

VGUS currently has the higher Sharpe Ratio (12.10 vs 1.91), 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.