VGUS vs. KDEC

Last updated Aug 6, 2026

VGUS (Vanguard Ultra-Short Treasury ETF) and KDEC (Innovator U.S. Small Cap Power Buffer ETF - December) are both exchange-traded funds - VGUS is a Ultrashort Bond fund tracking the Bloomberg Short Treasury Index, while KDEC is a Defined Outcome fund actively managed by Innovator. VGUS is passively managed, while KDEC is actively managed. Over the past year, VGUS returned 3.79% vs 17.93% for KDEC. Their -0.16 correlation means they have often moved in opposite directions in the past. VGUS charges 0.07%/yr vs 0.79%/yr for KDEC.

Performance

VGUS vs. KDEC - Performance Comparison

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

Returns By Period

In the year-to-date period, VGUS achieves a 2.06% return, which is significantly lower than KDEC's 12.36% return.

VGUS

• 1D: 0.01%
• 1M: 0.30%
• 6M: 1.74%
• YTD: 2.06%
• 1Y: 3.79%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 3.97%

KDEC

• 1D: -0.07%
• 1M: 0.93%
• 6M: 8.96%
• YTD: 12.36%
• 1Y: 17.93%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 8.63%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
KDEC Innovator U.S. Small Cap Power Buffer ETF - December	$195.17K	$518.07K	$353.37K
VGUS Vanguard Ultra-Short Treasury ETF	$6.89M	$7.73M	$10.62M

VGUS vs. KDEC - Yearly Performance Comparison

	2026 (YTD)	2025
VGUS Vanguard Ultra-Short Treasury ETF	2.06%	3.78%
KDEC Innovator U.S. Small Cap Power Buffer ETF - December	12.36%	4.81%

Correlation

The correlation between VGUS and KDEC is -0.13, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.13
Correlation (All Time) Calculated using the full available price history since Feb 11, 2025	-0.16

Return for Risk

VGUS vs. KDEC — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VGUS

VGUS Risk / Return Rank: 100
VGUS Sharpe Ratio Rank: 100
VGUS Sortino Ratio Rank: 100
VGUS Omega Ratio Rank: 100
VGUS Calmar Ratio Rank: 99
VGUS Martin Ratio Rank: 100

KDEC

KDEC Risk / Return Rank: 77
KDEC Sharpe Ratio Rank: 75
KDEC Sortino Ratio Rank: 78
KDEC Omega Ratio Rank: 74
KDEC Calmar Ratio Rank: 81
KDEC Martin Ratio Rank: 77

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VGUS vs. KDEC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Ultra-Short Treasury ETF (VGUS) and Innovator U.S. Small Cap Power Buffer ETF - December (KDEC). 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.

	VGUS	KDEC	Difference
Sharpe ratio: Return per unit of total volatility	13.12	1.94	+11.18
Sortino ratio: Return per unit of downside risk	36.83	2.84	+33.99
Omega ratio: Gain probability vs. loss probability	11.40	1.35	+10.05
Calmar ratio: Return relative to maximum drawdown	52.28	3.35	+48.93
Martin ratio: Return relative to average drawdown	415.06	11.20	+403.86

VGUS vs. KDEC - Sharpe Ratio Comparison

The current VGUS Sharpe Ratio is 13.12, which is higher than the KDEC Sharpe Ratio of 1.94. The chart below compares the historical Sharpe Ratios of VGUS and KDEC, 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

VGUS vs. KDEC - Drawdown Comparison

The maximum VGUS drawdown since its inception was -0.07%, smaller than the maximum KDEC drawdown of -16.52%. Use the drawdown chart below to compare losses from any high point for VGUS and KDEC.

Drawdown Indicators

	VGUS	KDEC	Difference
Max Drawdown Largest peak-to-trough decline	-0.07%	-16.52%	+16.45%
Max Drawdown (1Y) Largest decline over 1 year	-0.07%	-5.38%	+5.31%
Current Drawdown Current decline from peak	0.00%	-0.07%	+0.07%
Average Drawdown Average peak-to-trough decline	0.00%	-2.76%	+2.76%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.01%	1.60%	-1.59%

Volatility

VGUS vs. KDEC - Volatility Comparison

The current volatility for Vanguard Ultra-Short Treasury ETF (VGUS) is 0.05%, while Innovator U.S. Small Cap Power Buffer ETF - December (KDEC) has a volatility of 1.57%. This indicates that VGUS experiences smaller price fluctuations and is considered to be less risky than KDEC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGUS	KDEC	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.05%	1.57%	-1.52%
Volatility (6M) Calculated over the trailing 6-month period	0.18%	6.48%	-6.30%
Volatility (1Y) Calculated over the trailing 1-year period	0.29%	9.28%	-8.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	0.33%	11.90%	-11.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	0.33%	11.90%	-11.57%

VGUS vs. KDEC - Expense Ratio Comparison

VGUS has a 0.07% expense ratio, which is lower than KDEC's 0.79% expense ratio.

Dividends

VGUS vs. KDEC - Dividend Comparison

VGUS's dividend yield for the trailing twelve months is around 3.59%, while KDEC has not paid dividends to shareholders.

Position	TTM	2025
KDEC Innovator U.S. Small Cap Power Buffer ETF - December	0.00%	0.00%
VGUS Vanguard Ultra-Short Treasury ETF	3.59%	3.12%

Frequently Asked Questions

Can I hold both VGUS and KDEC in my portfolio?

VGUS and KDEC have a correlation of -0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VGUS or KDEC?

KDEC has higher volatility (1.57%) compared to VGUS (0.05%). In terms of maximum drawdown, VGUS dropped -0.07% vs KDEC's -16.52%.

Which ETF is better, VGUS or KDEC?

On 1-year performance, KDEC leads with 17.93% vs 3.79% for VGUS. On fees, VGUS is cheaper at 0.07% per year. On volatility, VGUS has been the lower-risk option at 0.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGUS or KDEC?

Over the 1-year period, KDEC has performed better with a 17.93% return vs 3.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGUS or KDEC?

VGUS is cheaper with a 0.07% expense ratio, compared with 0.79% for KDEC.

Which ETF pays a higher dividend yield, VGUS or KDEC?

VGUS has the higher dividend yield at 3.59%, compared with 0.00% for KDEC.

What is the main difference between VGUS and KDEC?

VGUS is categorized as Ultrashort Bond, while KDEC is Defined Outcome. They also come from different issuers: Vanguard and Innovator. Their fees differ too: 0.07% for VGUS and 0.79% for KDEC.

Which has better risk-adjusted returns?

VGUS currently has the higher Sharpe Ratio (13.12 vs 1.94), 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.