USEP vs. ZDEK

Last updated Jun 4, 2026

USEP (Innovator U.S. Equity Ultra Buffer ETF - September) and ZDEK (Innovator Equity Defined Protection ETF - 1 Yr December) are both Defined Outcome funds from Innovator. USEP is passively managed, while ZDEK is actively managed. Over the past year, USEP returned 14.66% vs 9.03% for ZDEK. Their correlation of 0.90 suggests significant overlap in exposure. Both charge a 0.79% expense ratio.

Performance

USEP vs. ZDEK - 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 Equity Defined Protection ETF - 1 Yr December (ZDEK). 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 higher than ZDEK's 2.56% return.

USEP

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

ZDEK

• 1D: -0.04%
• 1M: 0.84%
• YTD: 2.56%
• 6M: 2.82%
• 1Y: 9.03%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

USEP vs. ZDEK - Yearly Performance Comparison

	2026 (YTD)	2025	2024
USEP Innovator U.S. Equity Ultra Buffer ETF - September	4.73%	11.75%	-0.89%
ZDEK Innovator Equity Defined Protection ETF - 1 Yr December	2.56%	7.78%	-0.38%

Correlation

The correlation between USEP and ZDEK is 0.89, 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	0.89
Correlation (All Time) Calculated using the full available price history since Dec 3, 2024	0.90

The correlation between USEP and ZDEK has been stable across timeframes, ranging from 0.89 to 0.90 - a consistent structural relationship.

Return for Risk

USEP vs. ZDEK — 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

ZDEK

ZDEK Risk / Return Rank: 93
ZDEK Sharpe Ratio Rank: 92
ZDEK Sortino Ratio Rank: 95
ZDEK Omega Ratio Rank: 95
ZDEK Calmar Ratio Rank: 91
ZDEK Martin Ratio Rank: 95

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. ZDEK - 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 Equity Defined Protection ETF - 1 Yr December (ZDEK). 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	ZDEK	Difference
Sharpe ratio Return per unit of total volatility	2.70	3.28	-0.58
Sortino ratio Return per unit of downside risk	3.98	5.12	-1.14
Omega ratio Gain probability vs. loss probability	1.55	1.71	-0.16
Calmar ratio Return relative to maximum drawdown	3.66	6.02	-2.36
Martin ratio Return relative to average drawdown	18.85	30.78	-11.93
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

USEP vs. ZDEK - Sharpe Ratio Comparison

The current USEP Sharpe Ratio is 2.70, which is comparable to the ZDEK Sharpe Ratio of 3.28. The chart below compares the historical Sharpe Ratios of USEP and ZDEK, 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	ZDEK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.70	3.28	-0.58
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.09	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.00	2.02	-1.02

Drawdowns

USEP vs. ZDEK - Drawdown Comparison

The maximum USEP drawdown since its inception was -13.37%, which is greater than ZDEK's maximum drawdown of -3.40%. Use the drawdown chart below to compare losses from any high point for USEP and ZDEK.

Drawdown Indicators

	USEP	ZDEK	Difference
Max Drawdown Largest peak-to-trough decline	-13.37%	-3.40%	-9.97%
Max Drawdown (1Y) Largest decline over 1 year	-4.03%	-1.51%	-2.52%
Max Drawdown (3Y) Largest decline over 3 years	-9.72%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-11.84%	—	—
Current Drawdown Current decline from peak	-0.08%	-0.04%	-0.04%
Average Drawdown Average peak-to-trough decline	-1.89%	-0.45%	-1.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.78%	0.29%	+0.49%

Volatility

USEP vs. ZDEK - Volatility Comparison

Innovator U.S. Equity Ultra Buffer ETF - September (USEP) has a higher volatility of 0.62% compared to Innovator Equity Defined Protection ETF - 1 Yr December (ZDEK) at 0.36%. This indicates that USEP's price experiences larger fluctuations and is considered to be riskier than ZDEK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	USEP	ZDEK	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.62%	0.36%	+0.26%
Volatility (6M) Calculated over the trailing 6-month period	4.00%	1.64%	+2.36%
Volatility (1Y) Calculated over the trailing 1-year period	5.47%	2.77%	+2.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.41%	3.31%	+4.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.06%	3.31%	+4.75%

USEP vs. ZDEK - Expense Ratio Comparison

Both USEP and ZDEK have an expense ratio of 0.79%.

Dividends

USEP vs. ZDEK - Dividend Comparison

Neither USEP nor ZDEK has paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
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%
ZDEK Innovator Equity Defined Protection ETF - 1 Yr December	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both USEP and ZDEK in my portfolio?

USEP and ZDEK have a correlation of 0.89, 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 ZDEK?

USEP has higher volatility (0.62%) compared to ZDEK (0.36%). In terms of maximum drawdown, USEP dropped -13.37% vs ZDEK's -3.40%.

Which ETF is better, USEP or ZDEK?

On 1-year performance, USEP leads with 14.66% vs 9.03% for ZDEK. Both ETFs have the same 0.79% expense ratio. On volatility, ZDEK has been the lower-risk option at 0.36%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, USEP or ZDEK?

Over the 1-year period, USEP has performed better with a 14.66% return vs 9.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, USEP or ZDEK?

USEP and ZDEK have the same expense ratio: 0.79% per year.

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

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

Which has better risk-adjusted returns?

ZDEK currently has the higher Sharpe Ratio (3.28 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.