USEP vs. BUFF

Last updated Jun 4, 2026

USEP (Innovator U.S. Equity Ultra Buffer ETF - September) and BUFF (Innovator Laddered Allocation Power Buffer ETF) are both Defined Outcome funds from Innovator - USEP tracks the S&P 500 Index while BUFF tracks the Refinitiv Laddered Power Buffer Strategy Index. Both are passively managed. Over the past 5 years, USEP returned 8.01%/yr vs 8.71%/yr for BUFF. Their correlation of 0.84 suggests significant overlap in exposure. USEP charges 0.79%/yr vs 0.89%/yr for BUFF.

Performance

USEP vs. BUFF - Performance Comparison

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

Returns By Period

In the year-to-date period, USEP achieves a 4.73% return, which is significantly lower than BUFF's 5.42% return.

USEP

• 1D: -0.08%
• 1M: 1.65%
• YTD: 4.73%
• 6M: 5.26%
• 1Y: 14.66%
• 3Y*: 13.11%
• 5Y*: 8.01%
• 10Y*: —

BUFF

• 1D: -0.27%
• 1M: 1.68%
• YTD: 5.42%
• 6M: 5.90%
• 1Y: 14.36%
• 3Y*: 12.47%
• 5Y*: 8.71%
• 10Y*: —

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

USEP vs. BUFF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
USEP Innovator U.S. Equity Ultra Buffer ETF - September	4.73%	11.75%	12.39%	18.62%	-7.98%	5.73%	7.13%	3.60%
BUFF Innovator Laddered Allocation Power Buffer ETF	5.42%	11.02%	12.05%	16.51%	-4.44%	8.37%	-12.08%	6.50%

Correlation

The correlation between USEP and BUFF is 0.86, 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	0.86
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.90
Correlation (All Time) Calculated using the full available price history since Sep 4, 2019	0.84

The correlation between USEP and BUFF has been stable across timeframes, ranging from 0.84 to 0.90 - a consistent structural relationship.

USEP vs. BUFF - Sectors Allocation Comparison

Sectors	USEP	BUFF
Technology	36.2%	36.2%
Financial Services	11.9%	11.9%
Communication Services	10.9%	10.9%
Consumer Cyclical	10.1%	10.1%
Healthcare	8.4%	8.4%
Industrials	8.1%	8.1%
Consumer Defensive	4.9%	4.9%
Energy	3.5%	3.5%
Utilities	2.3%	2.3%
Real Estate	1.9%	1.9%
Basic Materials	1.8%	1.8%

Return for Risk

USEP vs. BUFF — Risk / Return Rank

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

USEP

USEP Risk / Return Rank: 84
USEP Sharpe Ratio Rank: 83
USEP Sortino Ratio Rank: 87
USEP Omega Ratio Rank: 88
USEP Calmar Ratio Rank: 74
USEP Martin Ratio Rank: 87

BUFF

BUFF Risk / Return Rank: 86
BUFF Sharpe Ratio Rank: 84
BUFF Sortino Ratio Rank: 90
BUFF Omega Ratio Rank: 89
BUFF Calmar Ratio Rank: 78
BUFF Martin Ratio Rank: 90

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.

USEP vs. BUFF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Innovator U.S. Equity Ultra Buffer ETF - September (USEP) and Innovator Laddered Allocation Power Buffer ETF (BUFF). 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.

	USEP	BUFF	Difference
Sharpe ratio: Return per unit of total volatility	2.70	2.80	-0.10
Sortino ratio: Return per unit of downside risk	3.98	4.24	-0.26
Omega ratio: Gain probability vs. loss probability	1.55	1.58	-0.03
Calmar ratio: Return relative to maximum drawdown	3.66	4.02	-0.37
Martin ratio: Return relative to average drawdown	18.85	21.50	-2.65
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

USEP vs. BUFF - Sharpe Ratio Comparison

The current USEP Sharpe Ratio is 2.70, which is comparable to the BUFF Sharpe Ratio of 2.80. The chart below compares the historical Sharpe Ratios of USEP and BUFF, 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

	USEP	BUFF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.70	2.80	-0.10
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.09	1.04	+0.04
Sharpe Ratio (All Time) Calculated using the full available price history	1.00	0.49	+0.51

Drawdowns

USEP vs. BUFF - Drawdown Comparison

The maximum USEP drawdown since its inception was -13.37%, smaller than the maximum BUFF drawdown of -46.23%. Use the drawdown chart below to compare losses from any high point for USEP and BUFF.

Drawdown Indicators

	USEP	BUFF	Difference
Max Drawdown Largest peak-to-trough decline	-13.37%	-46.23%	+32.86%
Max Drawdown (1Y) Largest decline over 1 year	-4.03%	-3.58%	-0.45%
Max Drawdown (3Y) Largest decline over 3 years	-9.72%	-10.24%	+0.52%
Max Drawdown (5Y) Largest decline over 5 years	-11.84%	-10.24%	-1.60%
Current Drawdown Current decline from peak	-0.08%	-0.27%	+0.19%
Average Drawdown Average peak-to-trough decline	-1.89%	-6.18%	+4.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.78%	0.67%	+0.11%

Volatility

USEP vs. BUFF - Volatility Comparison

The current volatility for Innovator U.S. Equity Ultra Buffer ETF - September (USEP) is 0.62%, while Innovator Laddered Allocation Power Buffer ETF (BUFF) has a volatility of 1.02%. This indicates that USEP experiences smaller price fluctuations and is considered to be less risky than BUFF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	USEP	BUFF	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.62%	1.02%	-0.40%
Volatility (6M) Calculated over the trailing 6-month period	4.00%	3.83%	+0.17%
Volatility (1Y) Calculated over the trailing 1-year period	5.47%	5.15%	+0.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.41%	8.41%	-1.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.06%	17.67%	-9.61%

USEP vs. BUFF - Expense Ratio Comparison

USEP has a 0.79% expense ratio, which is lower than BUFF's 0.89% expense ratio.

Dividends

USEP vs. BUFF - Dividend Comparison

Neither USEP nor BUFF has paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
BUFF Innovator Laddered Allocation Power Buffer ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	1.78%	1.26%	1.74%	1.55%	0.18%
USEP Innovator U.S. Equity Ultra Buffer ETF - September	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.64%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both USEP and BUFF in my portfolio?

USEP and BUFF have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, USEP or BUFF?

BUFF has higher volatility (1.02%) compared to USEP (0.62%). In terms of maximum drawdown, USEP dropped -13.37% vs BUFF's -46.23%.

Which ETF is better, USEP or BUFF?

On 5-year performance, BUFF leads with 8.71% vs 8.01% for USEP. On fees, USEP is cheaper at 0.79% per year. On volatility, USEP has been the lower-risk option at 0.62%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, USEP or BUFF?

Over the 5-year period, BUFF has performed better with a 8.71% return vs 8.01%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, USEP or BUFF?

USEP is cheaper with a 0.79% expense ratio, compared with 0.89% for BUFF.

Which ETF pays a higher dividend yield, USEP or BUFF?

USEP and BUFF have nearly identical dividend yields, around 0.00%.

What is the main difference between USEP and BUFF?

USEP tracks S&P 500 Index, while BUFF tracks Refinitiv Laddered Power Buffer Strategy Index. Their fees differ too: 0.79% for USEP and 0.89% for BUFF.

Which has better risk-adjusted returns?

BUFF currently has the higher Sharpe Ratio (2.80 vs 2.70), 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.