UDEC vs. KSEP

Last updated Jun 4, 2026

UDEC (Innovator U.S. Equity Ultra Buffer ETF - December) and KSEP (Innovator U.S. Small Cap Power Buffer ETF - September) are both Defined Outcome funds from Innovator. UDEC is passively managed, while KSEP is actively managed. Over the past year, UDEC returned 17.31% vs 20.63% for KSEP. A 0.74 correlation means they provide meaningful diversification when combined. Both charge a 0.79% expense ratio.

Performance

UDEC vs. KSEP - Performance Comparison

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

Returns By Period

In the year-to-date period, UDEC achieves a 5.14% return, which is significantly lower than KSEP's 8.77% return.

UDEC

• 1D: -0.12%
• 1M: 2.11%
• YTD: 5.14%
• 6M: 5.49%
• 1Y: 17.31%
• 3Y*: 12.44%
• 5Y*: 7.26%
• 10Y*: —

KSEP

• 1D: -0.28%
• 1M: 1.76%
• YTD: 8.77%
• 6M: 8.72%
• 1Y: 20.63%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

UDEC vs. KSEP - Yearly Performance Comparison

	2026 (YTD)	2025	2024
UDEC Innovator U.S. Equity Ultra Buffer ETF - December	5.14%	12.97%	1.41%
KSEP Innovator U.S. Small Cap Power Buffer ETF - September	8.77%	8.54%	3.08%

Correlation

The correlation between UDEC and KSEP 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 Sep 4, 2024	0.74

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

Return for Risk

UDEC vs. KSEP — Risk / Return Rank

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

UDEC

UDEC Risk / Return Rank: 84
UDEC Sharpe Ratio Rank: 82
UDEC Sortino Ratio Rank: 86
UDEC Omega Ratio Rank: 86
UDEC Calmar Ratio Rank: 77
UDEC Martin Ratio Rank: 88

KSEP

KSEP Risk / Return Rank: 71
KSEP Sharpe Ratio Rank: 62
KSEP Sortino Ratio Rank: 69
KSEP Omega Ratio Rank: 63
KSEP Calmar Ratio Rank: 83
KSEP Martin Ratio Rank: 81

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.

UDEC vs. KSEP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Innovator U.S. Equity Ultra Buffer ETF - December (UDEC) and Innovator U.S. Small Cap Power Buffer ETF - September (KSEP). 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.

	UDEC	KSEP	Difference
Sharpe ratio: Return per unit of total volatility	2.66	2.04	+0.62
Sortino ratio: Return per unit of downside risk	3.89	3.10	+0.80
Omega ratio: Gain probability vs. loss probability	1.53	1.37	+0.16
Calmar ratio: Return relative to maximum drawdown	3.91	4.36	-0.44
Martin ratio: Return relative to average drawdown	19.15	15.77	+3.38
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

UDEC vs. KSEP - Sharpe Ratio Comparison

The current UDEC Sharpe Ratio is 2.66, which is higher than the KSEP Sharpe Ratio of 2.04. The chart below compares the historical Sharpe Ratios of UDEC and KSEP, 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

	UDEC	KSEP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.66	2.04	+0.62
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.02	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.91	1.03	-0.11

Drawdowns

UDEC vs. KSEP - Drawdown Comparison

The maximum UDEC drawdown since its inception was -13.37%, smaller than the maximum KSEP drawdown of -14.92%. Use the drawdown chart below to compare losses from any high point for UDEC and KSEP.

Drawdown Indicators

	UDEC	KSEP	Difference
Max Drawdown Largest peak-to-trough decline	-13.37%	-14.92%	+1.55%
Max Drawdown (1Y) Largest decline over 1 year	-4.44%	-4.75%	+0.31%
Max Drawdown (3Y) Largest decline over 3 years	-8.94%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-10.26%	—	—
Current Drawdown Current decline from peak	-0.15%	-0.28%	+0.13%
Average Drawdown Average peak-to-trough decline	-2.16%	-2.45%	+0.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.91%	1.31%	-0.40%

Volatility

UDEC vs. KSEP - Volatility Comparison

The current volatility for Innovator U.S. Equity Ultra Buffer ETF - December (UDEC) is 0.93%, while Innovator U.S. Small Cap Power Buffer ETF - September (KSEP) has a volatility of 1.63%. This indicates that UDEC experiences smaller price fluctuations and is considered to be less risky than KSEP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	UDEC	KSEP	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.93%	1.63%	-0.70%
Volatility (6M) Calculated over the trailing 6-month period	4.27%	6.27%	-2.00%
Volatility (1Y) Calculated over the trailing 1-year period	6.53%	10.16%	-3.63%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.18%	11.65%	-4.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.02%	11.65%	-3.63%

UDEC vs. KSEP - Expense Ratio Comparison

Both UDEC and KSEP have an expense ratio of 0.79%.

Dividends

UDEC vs. KSEP - Dividend Comparison

Neither UDEC nor KSEP has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both UDEC and KSEP in my portfolio?

UDEC and KSEP 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, UDEC or KSEP?

KSEP has higher volatility (1.63%) compared to UDEC (0.93%). In terms of maximum drawdown, UDEC dropped -13.37% vs KSEP's -14.92%.

Which ETF is better, UDEC or KSEP?

On 1-year performance, KSEP leads with 20.63% vs 17.31% for UDEC. Both ETFs have the same 0.79% expense ratio. On volatility, UDEC has been the lower-risk option at 0.93%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, UDEC or KSEP?

Over the 1-year period, KSEP has performed better with a 20.63% return vs 17.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, UDEC or KSEP?

UDEC and KSEP have the same expense ratio: 0.79% per year.

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

UDEC and KSEP have nearly identical dividend yields, around 0.00%.

Which has better risk-adjusted returns?

UDEC currently has the higher Sharpe Ratio (2.66 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.