ZFEB vs. KSEP

Last updated Jun 4, 2026

ZFEB (Innovator Equity Defined Protection ETF - 1 Yr February) and KSEP (Innovator U.S. Small Cap Power Buffer ETF - September) are both Defined Outcome funds from Innovator. Both are actively managed. Over the past year, ZFEB returned 7.80% vs 20.63% for KSEP. A 0.69 correlation means they provide meaningful diversification when combined. Both charge a 0.79% expense ratio.

Performance

ZFEB vs. KSEP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Innovator Equity Defined Protection ETF - 1 Yr February (ZFEB) 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, ZFEB achieves a 2.36% return, which is significantly lower than KSEP's 8.77% return.

ZFEB

• 1D: -0.04%
• 1M: 0.81%
• YTD: 2.36%
• 6M: 3.03%
• 1Y: 7.80%
• 3Y*: —
• 5Y*: —
• 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)

ZFEB vs. KSEP - Yearly Performance Comparison

	2026 (YTD)	2025
ZFEB Innovator Equity Defined Protection ETF - 1 Yr February	2.36%	6.10%
KSEP Innovator U.S. Small Cap Power Buffer ETF - September	8.77%	7.34%

Correlation

The correlation between ZFEB and KSEP is 0.68, 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	0.68
Correlation (All Time) Calculated using the full available price history since Feb 4, 2025	0.69

The correlation between ZFEB and KSEP has been stable across timeframes, ranging from 0.68 to 0.69 - a consistent structural relationship.

Return for Risk

ZFEB vs. KSEP — Risk / Return Rank

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

ZFEB

ZFEB Risk / Return Rank: 94
ZFEB Sharpe Ratio Rank: 94
ZFEB Sortino Ratio Rank: 96
ZFEB Omega Ratio Rank: 96
ZFEB Calmar Ratio Rank: 91
ZFEB Martin Ratio Rank: 94

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.

ZFEB vs. KSEP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Innovator Equity Defined Protection ETF - 1 Yr February (ZFEB) 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.

	ZFEB	KSEP	Difference
Sharpe ratio Return per unit of total volatility	3.55	2.04	+1.51
Sortino ratio Return per unit of downside risk	5.61	3.10	+2.51
Omega ratio Gain probability vs. loss probability	1.79	1.37	+0.41
Calmar ratio Return relative to maximum drawdown	5.81	4.36	+1.45
Martin ratio Return relative to average drawdown	28.36	15.77	+12.59
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ZFEB vs. KSEP - Sharpe Ratio Comparison

The current ZFEB Sharpe Ratio is 3.55, which is higher than the KSEP Sharpe Ratio of 2.04. The chart below compares the historical Sharpe Ratios of ZFEB 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

	ZFEB	KSEP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.55	2.04	+1.51
Sharpe Ratio (All Time) Calculated using the full available price history	2.24	1.03	+1.21

Drawdowns

ZFEB vs. KSEP - Drawdown Comparison

The maximum ZFEB drawdown since its inception was -3.00%, smaller than the maximum KSEP drawdown of -14.92%. Use the drawdown chart below to compare losses from any high point for ZFEB and KSEP.

Drawdown Indicators

	ZFEB	KSEP	Difference
Max Drawdown Largest peak-to-trough decline	-3.00%	-14.92%	+11.92%
Max Drawdown (1Y) Largest decline over 1 year	-1.35%	-4.75%	+3.40%
Current Drawdown Current decline from peak	-0.04%	-0.28%	+0.24%
Average Drawdown Average peak-to-trough decline	-0.36%	-2.45%	+2.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.28%	1.31%	-1.03%

Volatility

ZFEB vs. KSEP - Volatility Comparison

The current volatility for Innovator Equity Defined Protection ETF - 1 Yr February (ZFEB) is 0.38%, while Innovator U.S. Small Cap Power Buffer ETF - September (KSEP) has a volatility of 1.63%. This indicates that ZFEB 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

	ZFEB	KSEP	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.38%	1.63%	-1.25%
Volatility (6M) Calculated over the trailing 6-month period	1.45%	6.27%	-4.82%
Volatility (1Y) Calculated over the trailing 1-year period	2.21%	10.16%	-7.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.88%	11.65%	-8.77%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.88%	11.65%	-8.77%

ZFEB vs. KSEP - Expense Ratio Comparison

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

Dividends

ZFEB vs. KSEP - Dividend Comparison

Neither ZFEB nor KSEP has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both ZFEB and KSEP in my portfolio?

ZFEB and KSEP have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ZFEB or KSEP?

KSEP has higher volatility (1.63%) compared to ZFEB (0.38%). In terms of maximum drawdown, ZFEB dropped -3.00% vs KSEP's -14.92%.

Which ETF is better, ZFEB or KSEP?

On 1-year performance, KSEP leads with 20.63% vs 7.80% for ZFEB. Both ETFs have the same 0.79% expense ratio. On volatility, ZFEB has been the lower-risk option at 0.38%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ZFEB or KSEP?

Over the 1-year period, KSEP has performed better with a 20.63% return vs 7.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ZFEB or KSEP?

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

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

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

Which has better risk-adjusted returns?

ZFEB currently has the higher Sharpe Ratio (3.55 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.