At a glance
BFEB charges 0.79% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $253.9M in assets, the 8th largest of that group. Over the past year it returned +13.6% with distributions reinvested (S&P 500: +11.5%), the best of those 8 funds; over three years it returned +19.0% a year. At its worst it fell 26.4% in the 2020 crash (S&P 500: 33.7%) and 14.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 5 months and 8 months after the lows.
The short version
Innovator U.S. Equity Buffer ETF - February (BFEB) holds FLEX options on the SPDR S&P 500 ETF Trust (SPY). It aims to match SPY's return up to a cap, while cushioning the first 9% of losses over each one-year period that runs from February to January. For February 1, 2026 to January 31, 2027, the cap is 16.60% before fees. Its 0.79% expense ratio is below the 0.86% average for similar buffer funds, but it pays no distributions.
Price history
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BFEB +13.6% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| BFEB official prospectus, to Dec 31, 2024 | — | +12.89% | — | +12.28% | — | — |
| BFEB price data to Oct 27, 2026 | +11.9% | +13.6% | +19.0% | +11.5% | — | +12.5% |
- Over the year to Oct 27, 2026, BFEB returned +13.6%, 1st of 8 among similar funds.
- Its 5-year annualized return was +11.5%.
- In the 2020 COVID crash it fell 26.4% and regained its old high 4.7 months after the low.
- Its worst full calendar year was 2022 (-6.8%); its best was 2023 (+22.4%).
- The deepest fall in its price history was 26.4% (Feb 19, 2020 to Mar 23, 2020), recovered by Aug 12, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +11.9% | — |
| 2025 | +13.0% | +12.89% |
| 2024 | +17.6% | +17.48% |
| 2023 | +22.4% | +22.48% |
| 2022 | -6.8% | -6.63% |
| 2021 | +18.1% | +17.92% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 26.4% over that stretch · deepest drop along the way 26.4%, back to its old high 4.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 13.2% over that stretch · deepest drop along the way 14.8%, back to its old high 7.6 months after the low |
What's inside
As of Jul 31, 2026, the fund held 0 securities; the ten largest made up 0% of assets.
| Holding | Weight |
|---|
By country
By asset type
What changed recently
- Over the three months to Jul 31, 2026, investors added a net $10.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.96%, -0.23%, +0.54%.
How it works
BFEB doesn't pick stocks. Under normal conditions, at least 80% of its net assets go into investments tied to the State Street SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500. The fund doesn't own SPY directly. Instead it holds a few FLEX options on SPY. FLEX options are exchange-listed options whose terms can be customized. As of July 31, 2026, the portfolio held four SPY options plus 0.28% in cash. Innovator Capital Management is the adviser, and Milliman Financial Risk Management is the sub-adviser.
The options are set on the first day of each one-year outcome period. For February 1, 2026 to January 31, 2027, the fund aims to match SPY's gains up to a cap of 16.60% and to absorb the first 9% of SPY losses. After the 0.79% fee, the cap is 15.81% and the buffer is 8.21%. Losses beyond 9% pass through one for one. In the prospectus table, a 20% SPY drop produces an 11% fund loss before fees.
These outcomes apply only to shares held for the whole period. If you buy or sell partway through, your results can be very different. Innovator posts updated figures daily at innovatoretfs.com/bfeb. When the period ends, the options expire, the fund collects their cash value and buys a new one-year set. Shares also trade at market prices, which can differ from net asset value.
What it really costs
- BFEB charges 0.79% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $81 in the first year and $978 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| BFEB | $81 | $252 | $439 | $978 |
Structure and tax notes
- Uses options to limit losses within a range (the buffer) in exchange for a cap on gains over each outcome period; results depend on when you buy relative to the period start.
In a retirement portfolio
It keeps S&P 500 stock exposure but trades some upside for a 9% loss buffer, aiming for a smoother ride rather than income or diversification.
BFEB could be a gentler way to hold large US stocks. As of October 27, 2026, its one-year volatility was 8.2% and its beta was 0.64, meaning it moved less than the market. The buffer has limits, though. The fund launched in 2020, so it has no record from 2008. In the 2020 COVID crash it fell 26.4% between February 19 and March 23, then recovered by August 12, about 4.7 months later. In 2022 it fell 14.8% from its March peak and took 7.6 months to recover. It lost 6.63% for that calendar year. Anyone forced to sell in a year like that would lock in the loss. The fund has made no distributions, so income would have to come from selling shares. In the SEC's standard example, $10,000 invested costs $81 in the first year and $978 over ten years. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want S&P 500 exposure with a 9% buffer against losses and accept a 16.60% cap on gains (before fees) through January 31, 2027.
- Investors who can buy near February 1 and hold for the full year, since the stated cap and buffer apply only to that full period.
- Buffer-fund investors focused on cost: its 0.79% expense ratio ties for lowest among eight similar funds, whose average is 0.86%.
Look elsewhere if
- Retirees who need regular cash income: the fund has recorded no distributions, so withdrawals mean selling shares.
- Investors seeking protection from deep crashes: losses beyond 9% pass straight through, and the fund fell 26.4% in the 2020 COVID crash.
- Those who prefer larger funds: with $254 million in net assets as of July 31, 2026, BFEB is the smallest of eight similar buffer funds.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| BFEB this fund | 0.79% | $253.9M | +13.6% | +19.0% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Does BFEB pay dividends?
No. BFEB has recorded no distributions. The fund holds FLEX options on SPY, and its returns come from changes in its share price. Retirees who need regular cash would have to sell shares to get it. In a down year, that can mean selling at a loss. Investors who rely on portfolio income may want to compare it with funds that pay distributions.
What is BFEB's cap and buffer for 2026?
For the outcome period from February 1, 2026 to January 31, 2027, BFEB's cap is 16.60%, and its buffer covers the first 9% of SPY losses. Both figures are before fees. After the 0.79% management fee, the cap is 15.81% and the buffer is 8.21%. These figures apply only to shares held for the whole period. Innovator updates the figures for mid-period buyers daily at innovatoretfs.com/bfeb.
What's the difference between BFEB and FFEB?
Both are February buffer ETFs on US stocks. BFEB, from Innovator, charges 0.79% a year, and FT Vest's FFEB charges 0.85%. FFEB is much larger: about $1.42 billion in net assets as of August 31, 2026, against BFEB's $254 million as of July 31, 2026. As of October 27, 2026, their price returns were close: 13.6% for BFEB and 12.9% for FFEB over one year, and 19.0% and 18.6% a year over three years. Their caps and buffers are worth comparing too.
How did BFEB do in the 2022 bear market?
BFEB lost 6.63% in calendar 2022, according to its prospectus. That was its only losing calendar year from 2021 through 2025. The buffer softened the decline but didn't prevent it. The fund fell 14.8% from its March 29, 2022 peak to October 12, 2022, and recovered by June 1, 2023, about 7.6 months later. Its worst quarter was a 10.8% loss in the quarter ending June 30, 2022.
Is BFEB good for retirement?
It depends on the job you want it to do. BFEB may suit retirees who want S&P 500 exposure with smaller swings. As of October 27, 2026, its one-year volatility was 8.2% and its beta was 0.64. But it pays no income, it caps gains, and it buffers only the first 9% of losses over a full outcome period. It fell 26.4% in the 2020 COVID crash. In the SEC's standard example, it costs $81 in the first year on $10,000.