ZSEP vs. IBIC

Last updated Jun 23, 2026

ZSEP (Innovator Equity Defined Protection ETF - 1 Yr September) and IBIC (iShares iBonds Oct 2026 Term TIPS ETF) are both exchange-traded funds - ZSEP is a Defined Outcome fund actively managed by Innovator, while IBIC is a Inflation-Protected Bonds fund tracking the ICE 2026 Maturity US Inflation-Linked Treasury Index. ZSEP is actively managed, while IBIC is passively managed. Over the past year, ZSEP returned 7.42% vs 4.38% for IBIC. At a correlation of -0.17, they often move in opposite directions. ZSEP charges 0.79%/yr vs 0.10%/yr for IBIC.

Performance

ZSEP vs. IBIC - 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 iShares iBonds Oct 2026 Term TIPS ETF (IBIC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ZSEP achieves a 2.69% return, which is significantly higher than IBIC's 2.39% return.

ZSEP

• 1D: 0.02%
• 1M: 0.27%
• YTD: 2.69%
• 6M: 2.84%
• 1Y: 7.42%
• 3Y*: —
• 5Y*: —
• 10Y*: —

IBIC

• 1D: 0.06%
• 1M: 0.08%
• YTD: 2.39%
• 6M: 2.49%
• 1Y: 4.38%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

ZSEP vs. IBIC - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ZSEP Innovator Equity Defined Protection ETF - 1 Yr September	2.69%	6.78%	1.42%
IBIC iShares iBonds Oct 2026 Term TIPS ETF	2.39%	4.96%	1.61%

Correlation

The correlation between ZSEP and IBIC is -0.25, 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	-0.25
Correlation (All Time) Calculated using the full available price history since Sep 3, 2024	-0.17

Return for Risk

ZSEP vs. IBIC — Risk / Return Rank

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

ZSEP

ZSEP Risk / Return Rank: 93
ZSEP Sharpe Ratio Rank: 92
ZSEP Sortino Ratio Rank: 94
ZSEP Omega Ratio Rank: 94
ZSEP Calmar Ratio Rank: 89
ZSEP Martin Ratio Rank: 94

IBIC

IBIC Risk / Return Rank: 98
IBIC Sharpe Ratio Rank: 98
IBIC Sortino Ratio Rank: 98
IBIC Omega Ratio Rank: 98
IBIC Calmar Ratio Rank: 98
IBIC Martin Ratio Rank: 98

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. IBIC - 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 iShares iBonds Oct 2026 Term TIPS ETF (IBIC). 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	IBIC	Difference
Sharpe ratio: Return per unit of total volatility	3.08	4.94	-1.86
Sortino ratio: Return per unit of downside risk	4.73	8.90	-4.17
Omega ratio: Gain probability vs. loss probability	1.64	2.21	-0.57
Calmar ratio: Return relative to maximum drawdown	5.14	16.41	-11.27
Martin ratio: Return relative to average drawdown	26.26	58.11	-31.85

ZSEP vs. IBIC - Sharpe Ratio Comparison

The current ZSEP Sharpe Ratio is 3.08, which is lower than the IBIC Sharpe Ratio of 4.94. The chart below compares the historical Sharpe Ratios of ZSEP and IBIC, 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. IBIC - Drawdown Comparison

The maximum ZSEP drawdown since its inception was -3.97%, which is greater than IBIC's maximum drawdown of -0.90%. Use the drawdown chart below to compare losses from any high point for ZSEP and IBIC.

Drawdown Indicators

	ZSEP	IBIC	Difference
Max Drawdown Largest peak-to-trough decline	-3.97%	-0.90%	-3.07%
Max Drawdown (1Y) Largest decline over 1 year	-1.45%	-0.27%	-1.18%
Current Drawdown Current decline from peak	-0.15%	-0.11%	-0.04%
Average Drawdown Average peak-to-trough decline	-0.36%	-0.10%	-0.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.28%	0.08%	+0.20%

Volatility

ZSEP vs. IBIC - Volatility Comparison

Innovator Equity Defined Protection ETF - 1 Yr September (ZSEP) has a higher volatility of 0.51% compared to iShares iBonds Oct 2026 Term TIPS ETF (IBIC) at 0.16%. This indicates that ZSEP's price experiences larger fluctuations and is considered to be riskier than IBIC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ZSEP	IBIC	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.51%	0.16%	+0.35%
Volatility (6M) Calculated over the trailing 6-month period	1.86%	0.67%	+1.19%
Volatility (1Y) Calculated over the trailing 1-year period	2.42%	0.89%	+1.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.31%	1.57%	+1.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.31%	1.57%	+1.74%

ZSEP vs. IBIC - Expense Ratio Comparison

ZSEP has a 0.79% expense ratio, which is higher than IBIC's 0.10% expense ratio.

Dividends

ZSEP vs. IBIC - Dividend Comparison

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

Position	TTM	2025	2024	2023
IBIC iShares iBonds Oct 2026 Term TIPS ETF	3.59%	4.43%	4.65%	0.83%
ZSEP Innovator Equity Defined Protection ETF - 1 Yr September	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ZSEP and IBIC in my portfolio?

ZSEP and IBIC have a correlation of -0.25, 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 IBIC?

ZSEP has higher volatility (0.51%) compared to IBIC (0.16%). In terms of maximum drawdown, ZSEP dropped -3.97% vs IBIC's -0.90%.

Which ETF is better, ZSEP or IBIC?

On 1-year performance, ZSEP leads with 7.42% vs 4.38% for IBIC. On fees, IBIC is cheaper at 0.10% per year. On volatility, IBIC has been the lower-risk option at 0.16%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ZSEP or IBIC?

Over the 1-year period, ZSEP has performed better with a 7.42% return vs 4.38%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ZSEP or IBIC?

IBIC is cheaper with a 0.10% expense ratio, compared with 0.79% for ZSEP.

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

IBIC has the higher dividend yield at 3.59%, compared with 0.00% for ZSEP.

What is the main difference between ZSEP and IBIC?

ZSEP is categorized as Defined Outcome, while IBIC is Inflation-Protected Bonds. They also come from different issuers: Innovator and iShares. Their fees differ too: 0.79% for ZSEP and 0.10% for IBIC.

Which has better risk-adjusted returns?

IBIC currently has the higher Sharpe Ratio (4.94 vs 3.08), 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.