LOCT vs. PHEQ

Last updated Jun 4, 2026

LOCT (Innovator Premium Income 15 Buffer ETF - October) and PHEQ (Parametric Hedged Equity ETF) are both Options Trading funds. Both are actively managed. Over the past year, LOCT returned 5.75% vs 15.97% for PHEQ. A 0.66 correlation means they provide meaningful diversification when combined. LOCT charges 0.79%/yr vs 0.29%/yr for PHEQ.

Performance

LOCT vs. PHEQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Innovator Premium Income 15 Buffer ETF - October (LOCT) 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, LOCT achieves a 2.29% return, which is significantly lower than PHEQ's 5.67% return.

LOCT

• 1D: -0.04%
• 1M: 0.54%
• YTD: 2.29%
• 6M: 2.92%
• 1Y: 5.75%
• 3Y*: —
• 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)

LOCT vs. PHEQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
LOCT Innovator Premium Income 15 Buffer ETF - October	2.29%	5.56%	5.21%	2.88%
PHEQ Parametric Hedged Equity ETF	5.67%	11.76%	14.94%	7.19%

Correlation

The correlation between LOCT and PHEQ is 0.74, 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	0.74
Correlation (All Time) Calculated using the full available price history since Oct 20, 2023	0.66

The correlation between LOCT and PHEQ has been stable across timeframes, ranging from 0.66 to 0.74 - a consistent structural relationship.

Return for Risk

LOCT vs. PHEQ — Risk / Return Rank

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

LOCT

LOCT Risk / Return Rank: 89
LOCT Sharpe Ratio Rank: 83
LOCT Sortino Ratio Rank: 89
LOCT Omega Ratio Rank: 93
LOCT Calmar Ratio Rank: 85
LOCT Martin Ratio Rank: 93

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.

LOCT vs. PHEQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Innovator Premium Income 15 Buffer ETF - October (LOCT) 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.

	LOCT	PHEQ	Difference
Sharpe ratio: Return per unit of total volatility	2.67	2.62	+0.05
Sortino ratio: Return per unit of downside risk	4.10	3.92	+0.17
Omega ratio: Gain probability vs. loss probability	1.66	1.52	+0.14
Calmar ratio: Return relative to maximum drawdown	4.71	3.77	+0.94
Martin ratio: Return relative to average drawdown	25.14	17.21	+7.93
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LOCT vs. PHEQ - Sharpe Ratio Comparison

The current LOCT Sharpe Ratio is 2.67, which is comparable to the PHEQ Sharpe Ratio of 2.62. The chart below compares the historical Sharpe Ratios of LOCT 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

	LOCT	PHEQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.67	2.62	+0.05
Sharpe Ratio (All Time) Calculated using the full available price history	1.69	1.80	-0.11

Drawdowns

LOCT vs. PHEQ - Drawdown Comparison

The maximum LOCT drawdown since its inception was -4.69%, smaller than the maximum PHEQ drawdown of -12.55%. Use the drawdown chart below to compare losses from any high point for LOCT and PHEQ.

Drawdown Indicators

	LOCT	PHEQ	Difference
Max Drawdown Largest peak-to-trough decline	-4.69%	-12.55%	+7.86%
Max Drawdown (1Y) Largest decline over 1 year	-1.23%	-4.26%	+3.03%
Current Drawdown Current decline from peak	-0.06%	-0.18%	+0.12%
Average Drawdown Average peak-to-trough decline	-0.14%	-0.97%	+0.83%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.23%	0.93%	-0.70%

Volatility

LOCT vs. PHEQ - Volatility Comparison

The current volatility for Innovator Premium Income 15 Buffer ETF - October (LOCT) is 0.22%, while Parametric Hedged Equity ETF (PHEQ) has a volatility of 1.05%. This indicates that LOCT experiences smaller price fluctuations and is considered to be less risky than PHEQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LOCT	PHEQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.22%	1.05%	-0.83%
Volatility (6M) Calculated over the trailing 6-month period	1.67%	4.56%	-2.89%
Volatility (1Y) Calculated over the trailing 1-year period	2.16%	6.16%	-4.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.60%	8.62%	-5.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.60%	8.62%	-5.02%

LOCT vs. PHEQ - Expense Ratio Comparison

LOCT has a 0.79% expense ratio, which is higher than PHEQ's 0.29% expense ratio.

Dividends

LOCT vs. PHEQ - Dividend Comparison

LOCT's dividend yield for the trailing twelve months is around 5.14%, more than PHEQ's 1.03% yield.

Position	TTM	2025	2024	2023
LOCT Innovator Premium Income 15 Buffer ETF - October	5.14%	5.12%	6.27%	1.64%
PHEQ Parametric Hedged Equity ETF	1.03%	1.19%	1.39%	1.73%

Frequently Asked Questions

Can I hold both LOCT and PHEQ in my portfolio?

LOCT and PHEQ have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LOCT or PHEQ?

PHEQ has higher volatility (1.05%) compared to LOCT (0.22%). In terms of maximum drawdown, LOCT dropped -4.69% vs PHEQ's -12.55%.

Which ETF is better, LOCT or PHEQ?

On 1-year performance, PHEQ leads with 15.97% vs 5.75% for LOCT. On fees, PHEQ is cheaper at 0.29% per year. On volatility, LOCT has been the lower-risk option at 0.22%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LOCT or PHEQ?

Over the 1-year period, PHEQ has performed better with a 15.97% return vs 5.75%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LOCT or PHEQ?

PHEQ is cheaper with a 0.29% expense ratio, compared with 0.79% for LOCT.

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

LOCT has the higher dividend yield at 5.14%, compared with 1.03% for PHEQ.

What is the main difference between LOCT and PHEQ?

They also come from different issuers: Innovator and Parametric. Their fees differ too: 0.79% for LOCT and 0.29% for PHEQ.

Which has better risk-adjusted returns?

LOCT currently has the higher Sharpe Ratio (2.67 vs 2.62), 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.