KSEP vs. IWM
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 20.63% 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
Loading charts...
Returns By Period
In the year-to-date period, KSEP achieves a 8.77% return, which is significantly lower than IWM's 17.07% return.
KSEP
- 1D
- -0.28%
- 1M
- 1.76%
- YTD
- 8.77%
- 6M
- 8.72%
- 1Y
- 20.63%
- 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%
KSEP vs. IWM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
KSEP Innovator U.S. Small Cap Power Buffer ETF - September | 8.77% | 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.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
KSEP vs. IWM — Risk / Return Rank
KSEP
IWM
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 ratioReturn per unit of total volatility | -0.01 | ||
| Sortino ratioReturn per unit of downside risk | +0.24 | ||
| Omega ratioGain probability vs. loss probability | 1.37 | 1.34 | +0.04 |
| Calmar ratioReturn relative to maximum drawdown | 4.36 | 3.56 | +0.80 |
| Martin ratioReturn relative to average drawdown | 15.77 | 12.64 | +3.13 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| KSEP | IWM | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.04 | 2.05 | -0.01 |
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 | 1.03 | 0.37 | +0.66 |
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.
Loading charts...
Drawdown Indicators
| KSEP | IWM | Difference | |
|---|---|---|---|
Max DrawdownLargest 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 DrawdownCurrent decline from peak | -0.28% | -1.49% | +1.21% |
Average DrawdownAverage peak-to-trough decline | -2.45% | -10.77% | +8.32% |
Ulcer IndexDepth 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 1.63%, 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.
Loading charts...
Volatility by Period
| KSEP | IWM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.63% | 5.75% | -4.12% |
Volatility (6M)Calculated over the trailing 6-month period | 6.27% | 13.53% | -7.26% |
Volatility (1Y)Calculated over the trailing 1-year period | 10.16% | 19.20% | -9.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 11.65% | 22.52% | -10.87% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.65% | 23.04% | -11.39% |
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
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.
IWM has higher volatility (5.75%) compared to KSEP (1.63%). In terms of maximum drawdown, KSEP dropped -14.92% vs IWM's -59.05%.
On 1-year performance, IWM leads with 39.10% vs 20.63% for KSEP. On fees, IWM is cheaper at 0.19% per year. On volatility, KSEP has been the lower-risk option at 1.63%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, IWM has performed better with a 39.10% return vs 20.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IWM is cheaper with a 0.19% expense ratio, compared with 0.79% for KSEP.
IWM has the higher dividend yield at 0.88%, compared with 0.00% for KSEP.
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.
IWM currently has the higher Sharpe Ratio (2.05 vs 2.04), 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.
Find the right allocation for KSEP and IWM
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer