PAUG vs. USMF

Last updated Jun 16, 2026

PAUG (Innovator U.S. Equity Power Buffer ETF - August) and USMF (WisdomTree US Multifactor Fund) are both exchange-traded funds - PAUG is a Defined Outcome fund tracking the Cboe S&P 500 15% Buffer Protect August Series Index, while USMF is a Mid Cap Blend Equities fund tracking the WisdomTree US Multifactor Index. Both are passively managed. Over the past 5 years, PAUG returned 9.23%/yr vs 8.31%/yr for USMF. Their correlation of 0.80 suggests significant overlap in exposure. PAUG charges 0.79%/yr vs 0.28%/yr for USMF.

Performance

PAUG vs. USMF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Innovator U.S. Equity Power Buffer ETF - August (PAUG) and WisdomTree US Multifactor Fund (USMF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PAUG achieves a 5.25% return, which is significantly lower than USMF's 6.65% return.

PAUG

• 1D: 0.40%
• 1M: 1.02%
• YTD: 5.25%
• 6M: 5.77%
• 1Y: 15.45%
• 3Y*: 13.76%
• 5Y*: 9.23%
• 10Y*: —

USMF

• 1D: 1.25%
• 1M: 5.30%
• YTD: 6.65%
• 6M: 6.40%
• 1Y: 9.68%
• 3Y*: 13.99%
• 5Y*: 8.31%
• 10Y*: —

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

PAUG vs. USMF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
PAUG Innovator U.S. Equity Power Buffer ETF - August	5.25%	12.34%	15.37%	17.71%	-6.85%	7.58%	9.82%	3.60%
USMF WisdomTree US Multifactor Fund	6.65%	4.60%	19.65%	13.47%	-8.82%	21.26%	12.01%	5.46%

Correlation

The correlation between PAUG and USMF is 0.65, 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	0.65
Correlation (3Y) Calculated over the trailing 3-year period	0.74
Correlation (5Y) Calculated over the trailing 5-year period	0.80
Correlation (All Time) Calculated using the full available price history since Aug 1, 2019	0.80

The correlation between PAUG and USMF shifts across timeframes, from 0.65 (1 year) to 0.80 (all time), reflecting how their relationship changes across market environments.

PAUG vs. USMF - Sectors Allocation Comparison

Sectors	PAUG	USMF
Technology	38.4%	33.2%
Financial Services	11.0%	10.7%
Communication Services	10.8%	9.8%
Consumer Cyclical	10.0%	10.5%
Healthcare	8.4%	9.0%
Industrials	7.9%	8.2%
Consumer Defensive	4.6%	4.3%
Energy	3.2%	4.8%
Utilities	2.1%	1.9%
Real Estate	1.8%	2.0%
Basic Materials	1.7%	0.9%

Return for Risk

PAUG vs. USMF — Risk / Return Rank

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

PAUG

PAUG Risk / Return Rank: 90
PAUG Sharpe Ratio Rank: 90
PAUG Sortino Ratio Rank: 93
PAUG Omega Ratio Rank: 93
PAUG Calmar Ratio Rank: 80
PAUG Martin Ratio Rank: 92

USMF

USMF Risk / Return Rank: 28
USMF Sharpe Ratio Rank: 26
USMF Sortino Ratio Rank: 25
USMF Omega Ratio Rank: 24
USMF Calmar Ratio Rank: 32
USMF Martin Ratio Rank: 32

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.

PAUG vs. USMF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Innovator U.S. Equity Power Buffer ETF - August (PAUG) and WisdomTree US Multifactor Fund (USMF). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	PAUG	USMF	Difference
Sharpe ratio: Return per unit of total volatility	2.80	0.86	+1.94
Sortino ratio: Return per unit of downside risk	4.19	1.29	+2.90
Omega ratio: Gain probability vs. loss probability	1.60	1.15	+0.45
Calmar ratio: Return relative to maximum drawdown	3.92	1.50	+2.42
Martin ratio: Return relative to average drawdown	21.35	4.47	+16.88

PAUG vs. USMF - Sharpe Ratio Comparison

The current PAUG Sharpe Ratio is 2.80, which is higher than the USMF Sharpe Ratio of 0.86. The chart below compares the historical Sharpe Ratios of PAUG and USMF, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

PAUG vs. USMF - Drawdown Comparison

The maximum PAUG drawdown since its inception was -17.88%, smaller than the maximum USMF drawdown of -36.24%. Use the drawdown chart below to compare losses from any high point for PAUG and USMF.

Drawdown Indicators

	PAUG	USMF	Difference
Max Drawdown Largest peak-to-trough decline	-17.88%	-36.24%	+18.36%
Max Drawdown (1Y) Largest decline over 1 year	-3.96%	-6.47%	+2.51%
Max Drawdown (3Y) Largest decline over 3 years	-10.45%	-15.39%	+4.94%
Max Drawdown (5Y) Largest decline over 5 years	-11.76%	-18.10%	+6.34%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-1.81%	-4.15%	+2.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.72%	2.17%	-1.45%

Volatility

PAUG vs. USMF - Volatility Comparison

The current volatility for Innovator U.S. Equity Power Buffer ETF - August (PAUG) is 1.01%, while WisdomTree US Multifactor Fund (USMF) has a volatility of 4.10%. This indicates that PAUG experiences smaller price fluctuations and is considered to be less risky than USMF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PAUG	USMF	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.01%	4.10%	-3.09%
Volatility (6M) Calculated over the trailing 6-month period	4.26%	8.13%	-3.87%
Volatility (1Y) Calculated over the trailing 1-year period	5.55%	11.31%	-5.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.72%	14.34%	-5.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.58%	16.97%	-6.39%

PAUG vs. USMF - Expense Ratio Comparison

PAUG has a 0.79% expense ratio, which is higher than USMF's 0.28% expense ratio.

Dividends

PAUG vs. USMF - Dividend Comparison

PAUG has not paid dividends to shareholders, while USMF's dividend yield for the trailing twelve months is around 1.29%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
PAUG Innovator U.S. Equity Power Buffer ETF - August	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	1.33%	0.00%	0.00%
USMF WisdomTree US Multifactor Fund	1.29%	1.37%	1.22%	1.33%	1.74%	1.42%	1.34%	1.38%	1.45%	0.67%

Frequently Asked Questions

Can I hold both PAUG and USMF in my portfolio?

PAUG and USMF have a correlation of 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PAUG or USMF?

USMF has higher volatility (4.10%) compared to PAUG (1.01%). In terms of maximum drawdown, PAUG dropped -17.88% vs USMF's -36.24%.

Which ETF is better, PAUG or USMF?

On 5-year performance, PAUG leads with 9.23% vs 8.31% for USMF. On fees, USMF is cheaper at 0.28% per year. On volatility, PAUG has been the lower-risk option at 1.01%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PAUG or USMF?

Over the 5-year period, PAUG has performed better with a 9.23% return vs 8.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PAUG or USMF?

USMF is cheaper with a 0.28% expense ratio, compared with 0.79% for PAUG.

Which ETF pays a higher dividend yield, PAUG or USMF?

USMF has the higher dividend yield at 1.29%, compared with 0.00% for PAUG.

What is the main difference between PAUG and USMF?

PAUG is categorized as Defined Outcome, while USMF is Mid Cap Blend Equities. PAUG tracks Cboe S&P 500 15% Buffer Protect August Series Index, while USMF tracks WisdomTree US Multifactor Index. They also come from different issuers: Innovator and WisdomTree. Their fees differ too: 0.79% for PAUG and 0.28% for USMF.

Which has better risk-adjusted returns?

PAUG currently has the higher Sharpe Ratio (2.80 vs 0.86), 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.