KSEP vs. VBR

Last updated Jun 3, 2026

KSEP (Innovator U.S. Small Cap Power Buffer ETF - September) and VBR (Vanguard Small-Cap Value ETF) are both exchange-traded funds - KSEP is a Defined Outcome fund actively managed by Innovator, while VBR is a Small Cap Value Equities fund tracking the CRSP US Small Cap Value Index. KSEP is actively managed, while VBR is passively managed. Over the past year, KSEP returned 21.98% vs 25.78% for VBR. Their correlation of 0.90 suggests significant overlap in exposure. KSEP charges 0.79%/yr vs 0.05%/yr for VBR.

Performance

KSEP vs. VBR - 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 Vanguard Small-Cap Value ETF (VBR). 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 VBR's 11.67% return.

KSEP

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

VBR

• 1D: -0.39%
• 1M: 2.39%
• YTD: 11.67%
• 6M: 11.95%
• 1Y: 25.78%
• 3Y*: 16.44%
• 5Y*: 7.95%
• 10Y*: 10.53%

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

KSEP vs. VBR - Yearly Performance Comparison

	2026 (YTD)	2025	2024
KSEP Innovator U.S. Small Cap Power Buffer ETF - September	9.07%	8.54%	3.08%
VBR Vanguard Small-Cap Value ETF	11.67%	9.09%	3.15%

Correlation

The correlation between KSEP and VBR is 0.88, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.88
Correlation (All Time) Calculated using the full available price history since Sep 4, 2024	0.90

The correlation between KSEP and VBR has been stable across timeframes, ranging from 0.88 to 0.90 - a consistent structural relationship.

Return for Risk

KSEP vs. VBR — 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

VBR

VBR Risk / Return Rank: 52
VBR Sharpe Ratio Rank: 49
VBR Sortino Ratio Rank: 50
VBR Omega Ratio Rank: 46
VBR Calmar Ratio Rank: 58
VBR Martin Ratio Rank: 58

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. VBR - 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 Vanguard Small-Cap Value ETF (VBR). 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	VBR	Difference
Sharpe ratio Return per unit of total volatility	2.17	1.71	+0.46
Sortino ratio Return per unit of downside risk	3.28	2.52	+0.76
Omega ratio Gain probability vs. loss probability	1.40	1.30	+0.10
Calmar ratio Return relative to maximum drawdown	4.62	2.93	+1.70
Martin ratio Return relative to average drawdown	16.76	10.32	+6.43
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. VBR - Sharpe Ratio Comparison

The current KSEP Sharpe Ratio is 2.17, which is comparable to the VBR Sharpe Ratio of 1.71. The chart below compares the historical Sharpe Ratios of KSEP and VBR, 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	VBR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.17	1.71	+0.46
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.40	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.49	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.04	0.42	+0.63

Drawdowns

KSEP vs. VBR - Drawdown Comparison

The maximum KSEP drawdown since its inception was -14.92%, smaller than the maximum VBR drawdown of -61.98%. Use the drawdown chart below to compare losses from any high point for KSEP and VBR.

Drawdown Indicators

	KSEP	VBR	Difference
Max Drawdown Largest peak-to-trough decline	-14.92%	-61.98%	+47.06%
Max Drawdown (1Y) Largest decline over 1 year	-4.75%	-8.85%	+4.10%
Max Drawdown (3Y) Largest decline over 3 years	—	-24.19%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-24.19%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-45.28%	—
Current Drawdown Current decline from peak	0.00%	-0.39%	+0.39%
Average Drawdown Average peak-to-trough decline	-2.46%	-8.27%	+5.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.31%	2.50%	-1.19%

Volatility

KSEP vs. VBR - Volatility Comparison

The current volatility for Innovator U.S. Small Cap Power Buffer ETF - September (KSEP) is 1.64%, while Vanguard Small-Cap Value ETF (VBR) has a volatility of 3.96%. This indicates that KSEP experiences smaller price fluctuations and is considered to be less risky than VBR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KSEP	VBR	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.64%	3.96%	-2.32%
Volatility (6M) Calculated over the trailing 6-month period	6.29%	10.46%	-4.17%
Volatility (1Y) Calculated over the trailing 1-year period	10.15%	15.17%	-5.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.66%	19.77%	-8.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.66%	21.73%	-10.07%

KSEP vs. VBR - Expense Ratio Comparison

KSEP has a 0.79% expense ratio, which is higher than VBR's 0.05% expense ratio.

Dividends

KSEP vs. VBR - Dividend Comparison

KSEP has not paid dividends to shareholders, while VBR's dividend yield for the trailing twelve months is around 1.76%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VBR Vanguard Small-Cap Value ETF	1.76%	1.95%	1.98%	2.12%	2.03%	1.75%	1.68%	2.06%	2.35%	1.79%	1.77%	1.99%

Frequently Asked Questions

Can I hold both KSEP and VBR in my portfolio?

KSEP and VBR have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KSEP or VBR?

VBR has higher volatility (3.96%) compared to KSEP (1.64%). In terms of maximum drawdown, KSEP dropped -14.92% vs VBR's -61.98%.

Which ETF is better, KSEP or VBR?

On 1-year performance, VBR leads with 25.78% vs 21.98% for KSEP. On fees, VBR is cheaper at 0.05% 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 VBR?

Over the 1-year period, VBR has performed better with a 25.78% 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 VBR?

VBR is cheaper with a 0.05% expense ratio, compared with 0.79% for KSEP.

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

VBR has the higher dividend yield at 1.76%, compared with 0.00% for KSEP.

What is the main difference between KSEP and VBR?

KSEP is categorized as Defined Outcome, while VBR is Small Cap Value Equities. They also come from different issuers: Innovator and Vanguard. Their fees differ too: 0.79% for KSEP and 0.05% for VBR.

Which has better risk-adjusted returns?

KSEP currently has the higher Sharpe Ratio (2.17 vs 1.71), 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.