KSEP vs. IWM

Last updated Jun 3, 2026

KSEP (Innovator U.S. Small Cap Power Buffer ETF - September) and IWM (iShares Russell 2000 ETF) are both exchange-traded funds - KSEP is a Defined Outcome fund actively managed by Innovator, while IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index. KSEP is actively managed, while IWM is passively managed. Over the past year, KSEP returned 21.98% vs 39.10% for IWM. With a 0.98 correlation, they move nearly in lockstep. KSEP charges 0.79%/yr vs 0.19%/yr for IWM.

Performance

KSEP vs. IWM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Innovator U.S. Small Cap Power Buffer ETF - September (KSEP) and iShares Russell 2000 ETF (IWM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KSEP achieves a 9.07% return, which is significantly lower than IWM's 17.07% return.

KSEP

• 1D: 0.13%
• 1M: 1.74%
• YTD: 9.07%
• 6M: 9.85%
• 1Y: 21.98%
• 3Y*: —
• 5Y*: —
• 10Y*: —

IWM

• 1D: -1.37%
• 1M: 3.52%
• YTD: 17.07%
• 6M: 15.83%
• 1Y: 39.10%
• 3Y*: 17.88%
• 5Y*: 6.11%
• 10Y*: 10.93%

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

KSEP vs. IWM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
KSEP Innovator U.S. Small Cap Power Buffer ETF - September	9.07%	8.54%	3.08%
IWM iShares Russell 2000 ETF	17.07%	12.66%	4.23%

Correlation

The correlation between KSEP and IWM is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.97
Correlation (All Time) Calculated using the full available price history since Sep 4, 2024	0.98

The correlation between KSEP and IWM has been stable across timeframes, ranging from 0.97 to 0.98 - a consistent structural relationship.

Return for Risk

KSEP vs. IWM — Risk / Return Rank

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

KSEP

KSEP Risk / Return Rank: 73
KSEP Sharpe Ratio Rank: 64
KSEP Sortino Ratio Rank: 71
KSEP Omega Ratio Rank: 64
KSEP Calmar Ratio Rank: 84
KSEP Martin Ratio Rank: 82

IWM

IWM Risk / Return Rank: 62
IWM Sharpe Ratio Rank: 59
IWM Sortino Ratio Rank: 59
IWM Omega Ratio Rank: 53
IWM Calmar Ratio Rank: 70
IWM Martin Ratio Rank: 67

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.

KSEP vs. IWM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Innovator U.S. Small Cap Power Buffer ETF - September (KSEP) and iShares Russell 2000 ETF (IWM). 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.

	KSEP	IWM	Difference
Sharpe ratio Return per unit of total volatility	2.17	2.05	+0.12
Sortino ratio Return per unit of downside risk	3.28	2.85	+0.43
Omega ratio Gain probability vs. loss probability	1.40	1.34	+0.06
Calmar ratio Return relative to maximum drawdown	4.62	3.56	+1.06
Martin ratio Return relative to average drawdown	16.76	12.64	+4.11
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

KSEP vs. IWM - Sharpe Ratio Comparison

The current KSEP Sharpe Ratio is 2.17, which is comparable to the IWM Sharpe Ratio of 2.05. The chart below compares the historical Sharpe Ratios of KSEP and IWM, 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

	KSEP	IWM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.17	2.05	+0.12
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.27	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.48	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.04	0.37	+0.68

Drawdowns

KSEP vs. IWM - Drawdown Comparison

The maximum KSEP drawdown since its inception was -14.92%, smaller than the maximum IWM drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for KSEP and IWM.

Drawdown Indicators

	KSEP	IWM	Difference
Max Drawdown Largest peak-to-trough decline	-14.92%	-59.05%	+44.13%
Max Drawdown (1Y) Largest decline over 1 year	-4.75%	-11.03%	+6.28%
Max Drawdown (3Y) Largest decline over 3 years	—	-27.50%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-31.91%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-41.13%	—
Current Drawdown Current decline from peak	0.00%	-1.49%	+1.49%
Average Drawdown Average peak-to-trough decline	-2.46%	-10.77%	+8.31%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.31%	3.10%	-1.79%

Volatility

KSEP vs. IWM - Volatility Comparison

The current volatility for Innovator U.S. Small Cap Power Buffer ETF - September (KSEP) is 1.64%, while iShares Russell 2000 ETF (IWM) has a volatility of 5.75%. This indicates that KSEP experiences smaller price fluctuations and is considered to be less risky than IWM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KSEP	IWM	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.64%	5.75%	-4.11%
Volatility (6M) Calculated over the trailing 6-month period	6.29%	13.53%	-7.24%
Volatility (1Y) Calculated over the trailing 1-year period	10.15%	19.20%	-9.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.66%	22.52%	-10.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.66%	23.04%	-11.38%

KSEP vs. IWM - Expense Ratio Comparison

KSEP has a 0.79% expense ratio, which is higher than IWM's 0.19% expense ratio.

Dividends

KSEP vs. IWM - Dividend Comparison

KSEP has not paid dividends to shareholders, while IWM's dividend yield for the trailing twelve months is around 0.88%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IWM iShares Russell 2000 ETF	0.88%	1.04%	1.15%	1.35%	1.48%	0.94%	1.04%	1.26%	1.40%	1.26%	1.38%	1.54%
KSEP Innovator U.S. Small Cap Power Buffer ETF - September	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both KSEP and IWM in my portfolio?

With a correlation of 0.97, KSEP and IWM 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, KSEP or IWM?

IWM has higher volatility (5.75%) compared to KSEP (1.64%). In terms of maximum drawdown, KSEP dropped -14.92% vs IWM's -59.05%.

Which ETF is better, KSEP or IWM?

On 1-year performance, IWM leads with 39.10% vs 21.98% for KSEP. On fees, IWM is cheaper at 0.19% per year. On volatility, KSEP has been the lower-risk option at 1.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KSEP or IWM?

Over the 1-year period, IWM has performed better with a 39.10% return vs 21.98%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KSEP or IWM?

IWM is cheaper with a 0.19% expense ratio, compared with 0.79% for KSEP.

Which ETF pays a higher dividend yield, KSEP or IWM?

IWM has the higher dividend yield at 0.88%, compared with 0.00% for KSEP.

What is the main difference between KSEP and IWM?

KSEP is categorized as Defined Outcome, while IWM is Small Cap Blend Equities. They also come from different issuers: Innovator and iShares. Their fees differ too: 0.79% for KSEP and 0.19% for IWM.

Which has better risk-adjusted returns?

KSEP currently has the higher Sharpe Ratio (2.17 vs 2.05), 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.