ZSEP vs. DBO

Last updated Jun 24, 2026

ZSEP (Innovator Equity Defined Protection ETF - 1 Yr September) and DBO (Invesco DB Oil Fund) are both exchange-traded funds - ZSEP is a Defined Outcome fund actively managed by Innovator, while DBO is a Oil & Gas fund tracking the DBIQ Optimum Yield Crude Oil Index Excess Return. ZSEP is actively managed, while DBO is passively managed. Over the past year, ZSEP returned 6.87% vs 37.25% for DBO. At a correlation of -0.08, they often move in opposite directions. ZSEP charges 0.79%/yr vs 0.78%/yr for DBO.

Performance

ZSEP vs. DBO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Innovator Equity Defined Protection ETF - 1 Yr September (ZSEP) and Invesco DB Oil Fund (DBO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZSEP achieves a 2.58% return, which is significantly lower than DBO's 43.93% return.

ZSEP

• 1D: -0.11%
• 1M: 0.16%
• YTD: 2.58%
• 6M: 2.42%
• 1Y: 6.87%
• 3Y*: —
• 5Y*: —
• 10Y*: —

DBO

• 1D: -4.15%
• 1M: -21.96%
• YTD: 43.93%
• 6M: 41.96%
• 1Y: 37.25%
• 3Y*: 12.72%
• 5Y*: 9.10%
• 10Y*: 8.76%

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

ZSEP vs. DBO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ZSEP Innovator Equity Defined Protection ETF - 1 Yr September	2.58%	6.78%	1.42%
DBO Invesco DB Oil Fund	43.93%	-11.71%	2.19%

Correlation

The correlation between ZSEP and DBO is -0.24, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.24
Correlation (All Time) Calculated using the full available price history since Sep 3, 2024	-0.08

The correlation between ZSEP and DBO shifts across timeframes, from -0.24 (1 year) to -0.08 (all time), reflecting how their relationship changes across market environments.

Return for Risk

ZSEP vs. DBO — Risk / Return Rank

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

ZSEP

ZSEP Risk / Return Rank: 92
ZSEP Sharpe Ratio Rank: 92
ZSEP Sortino Ratio Rank: 94
ZSEP Omega Ratio Rank: 93
ZSEP Calmar Ratio Rank: 88
ZSEP Martin Ratio Rank: 94

DBO

DBO Risk / Return Rank: 32
DBO Sharpe Ratio Rank: 33
DBO Sortino Ratio Rank: 34
DBO Omega Ratio Rank: 31
DBO Calmar Ratio Rank: 31
DBO Martin Ratio Rank: 32

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.

ZSEP vs. DBO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Innovator Equity Defined Protection ETF - 1 Yr September (ZSEP) and Invesco DB Oil Fund (DBO). 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.

	ZSEP	DBO	Difference
Sharpe ratio: Return per unit of total volatility	2.89	1.09	+1.79
Sortino ratio: Return per unit of downside risk	4.38	1.65	+2.73
Omega ratio: Gain probability vs. loss probability	1.59	1.20	+0.39
Calmar ratio: Return relative to maximum drawdown	4.76	1.43	+3.34
Martin ratio: Return relative to average drawdown	24.28	4.33	+19.96

ZSEP vs. DBO - Sharpe Ratio Comparison

The current ZSEP Sharpe Ratio is 2.89, which is higher than the DBO Sharpe Ratio of 1.09. The chart below compares the historical Sharpe Ratios of ZSEP and DBO, 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

ZSEP vs. DBO - Drawdown Comparison

The maximum ZSEP drawdown since its inception was -3.97%, smaller than the maximum DBO drawdown of -90.18%. Use the drawdown chart below to compare losses from any high point for ZSEP and DBO.

Drawdown Indicators

	ZSEP	DBO	Difference
Max Drawdown Largest peak-to-trough decline	-3.97%	-90.18%	+86.21%
Max Drawdown (1Y) Largest decline over 1 year	-1.45%	-26.22%	+24.77%
Max Drawdown (3Y) Largest decline over 3 years	—	-28.20%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-37.68%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-61.69%	—
Current Drawdown Current decline from peak	-0.25%	-62.12%	+61.87%
Average Drawdown Average peak-to-trough decline	-0.36%	-62.22%	+61.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.28%	8.63%	-8.35%

Volatility

ZSEP vs. DBO - Volatility Comparison

The current volatility for Innovator Equity Defined Protection ETF - 1 Yr September (ZSEP) is 0.52%, while Invesco DB Oil Fund (DBO) has a volatility of 10.78%. This indicates that ZSEP experiences smaller price fluctuations and is considered to be less risky than DBO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZSEP	DBO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.52%	10.78%	-10.26%
Volatility (6M) Calculated over the trailing 6-month period	1.86%	29.70%	-27.84%
Volatility (1Y) Calculated over the trailing 1-year period	2.42%	34.63%	-32.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.31%	32.59%	-29.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.31%	31.84%	-28.53%

ZSEP vs. DBO - Expense Ratio Comparison

ZSEP has a 0.79% expense ratio, which is higher than DBO's 0.78% expense ratio.

Dividends

ZSEP vs. DBO - Dividend Comparison

ZSEP has not paid dividends to shareholders, while DBO's dividend yield for the trailing twelve months is around 2.44%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
DBO Invesco DB Oil Fund	2.44%	3.51%	4.68%	4.59%	0.66%	0.00%	0.00%	1.63%	1.58%
ZSEP Innovator Equity Defined Protection ETF - 1 Yr September	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ZSEP and DBO in my portfolio?

ZSEP and DBO have a correlation of -0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ZSEP or DBO?

DBO has higher volatility (10.78%) compared to ZSEP (0.52%). In terms of maximum drawdown, ZSEP dropped -3.97% vs DBO's -90.18%.

Which ETF is better, ZSEP or DBO?

On 1-year performance, DBO leads with 37.25% vs 6.87% for ZSEP. On fees, DBO is cheaper at 0.78% per year. On volatility, ZSEP has been the lower-risk option at 0.52%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ZSEP or DBO?

Over the 1-year period, DBO has performed better with a 37.25% return vs 6.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ZSEP or DBO?

DBO is cheaper with a 0.78% expense ratio, compared with 0.79% for ZSEP.

Which ETF pays a higher dividend yield, ZSEP or DBO?

DBO has the higher dividend yield at 2.44%, compared with 0.00% for ZSEP.

What is the main difference between ZSEP and DBO?

ZSEP is categorized as Defined Outcome, while DBO is Oil & Gas. They also come from different issuers: Innovator and Invesco. Their fees differ too: 0.79% for ZSEP and 0.78% for DBO.

Which has better risk-adjusted returns?

ZSEP currently has the higher Sharpe Ratio (2.89 vs 1.09), 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.