At a glance
BSEP charges 0.79% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $214.4M in assets, the 8th largest of that group. Over the past year it returned +11.1% with distributions reinvested (S&P 500: +11.5%), 6th of those 8 funds; over three years it returned +18.6% a year. At its worst it fell 24.0% in the 2020 crash (S&P 500: 33.7%) and 15.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 12 months after the lows.
The short version
Innovator U.S. Equity Buffer ETF - September (BSEP) uses options on the SPDR S&P 500 ETF Trust. It aims to match S&P 500 returns up to a cap and to absorb the first 9% of losses over each September-to-August outcome period. For the period that ended August 31, 2026, the cap was 15.35% before fees. Its 0.79% expense ratio is below the 0.86% average of similar buffer funds, but it pays no dividend.
Price history
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BSEP +11.1% 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 | |
|---|---|---|---|---|---|---|
| BSEP official prospectus, to Dec 31, 2024 | — | +14.75% | — | +11.08% | — | +11.86% |
| BSEP price data to Oct 27, 2026 | +10.5% | +11.1% | +18.6% | +10.9% | — | +12.0% |
- Over the year to Oct 27, 2026, BSEP returned +11.1%, 6th of 8 among similar funds.
- Its 5-year annualized return was +10.9%.
- In the 2020 COVID crash it fell 24% and regained its old high 3.9 months after the low.
- Its worst full calendar year was 2022 (-9.2%); its best was 2023 (+20.9%).
- The deepest fall in its price history was 24% (Feb 19, 2020 to Mar 23, 2020), recovered by Jul 20, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +10.5% | — |
| 2025 | +14.8% | +14.75% |
| 2024 | +17.0% | +17.11% |
| 2023 | +20.9% | +20.87% |
| 2022 | -9.2% | -9.08% |
| 2021 | +14.6% | +14.51% |
| 2020 | +12.4% | +12.38% |
| 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 24% over that stretch · deepest drop along the way 24%, back to its old high 3.9 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 14.7% over that stretch · deepest drop along the way 15%, back to its old high 11.9 months after the low |
Dividends and income
No distribution history is available for this fund.
Distributions through Oct 27, 2026.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 withdrew a net $5.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.51%, +0.30%, +0.93%.
How it works
BSEP aims to match the return of the SPDR S&P 500 ETF Trust, which tracks the S&P 500, within preset limits over a one-year "outcome period." To do this it holds FLEX options, which are exchange-traded options with customized strike prices and expiry dates. Innovator Capital Management is the adviser and Milliman Financial Risk Management is the sub-adviser. As of July 31, 2026, the fund held four option positions on the SPDR ETF plus 0.32% in cash. A bought call with a $6.46 strike tracks the ETF's moves. A bought put at $645.06 and a sold put at $587 create the buffer. A sold call at $744.13 sets the cap.
For September 1, 2025 to August 31, 2026, the cap was 15.35% before fees, or 14.56% after the 0.79% fee. The buffer covered the first 9% of losses, or 8.21% after fees. The fund takes losses beyond that one for one, so a 20% drop in the ETF means about an 11% loss before fees. When a period ends, the options settle in cash and the fund buys a new one-year set. The cap resets each September.
These outcomes apply only to shares held for the whole period. They are based on net asset value, not the market price. Innovator updates the figures daily at innovatoretfs.com/bsep.
What it really costs
- BSEP 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 |
|---|---|---|---|---|
| BSEP | $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 exposure but uses options to soften the first 9% of losses in each outcome period, giving up gains above a cap in return.
BSEP keeps S&P 500 exposure with smaller swings. Its one-year beta was 0.57 as of October 27, 2026, so it moved about half as much as the market. It launched in 2019, so it has no 2008 record. In the 2020 COVID crash it still fell 24%, because the buffer applies at the end of each outcome period, not along the way. It recovered in about four months. In 2022 it dropped 15% and took 11.9 months to recover, and 2022 was its worst calendar year, at −9.08%. Selling mid-period can lock in losses the buffer was meant to soften.
It paid nothing in the year to October 27, 2026, so drawing cash means selling shares. In the SEC's standard example, the 0.79% fee costs $978 over 10 years on $10,000. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting a cushion on S&P 500 losses: for September 1, 2025 to August 31, 2026, the buffer was 9%, the cap 15.35%, before fees.
- Cost-conscious buffer-fund buyers: its 0.79% expense ratio tied for lowest among eight compared funds, versus a 0.86% peer average and 0.95% for BUFR.
- Investors wanting a smoother S&P 500 ride: its worst calendar year was 2022, down 9.08%; its best was 2023, up 20.87%.
Look elsewhere if
- Income seekers: it paid no distributions in the year to October 27, 2026, so retirees drawing cash would have to cash in shares.
- Investors entering mid-period: the buffer and cap apply only to holders from September 1 through August 31; others may see very different results.
- Those wanting full upside or crash protection: gains stop at the cap, and losses beyond 9% pass through; it fell 24% in early 2020.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| BSEP this fund | 0.79% | $214.4M | +11.1% | +18.6% |
| 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 BSEP pay dividends?
No. BSEP made no distributions in the 12 months to October 27, 2026, and its trailing yield was 0%. The fund gets its S&P 500 exposure through FLEX options on the SPDR S&P 500 ETF Trust instead of owning the shares, so it does not collect the dividends those stocks pay. Its returns come from price changes, within the cap and buffer. A retiree drawing cash from it would need to sell shares.
What happens if I buy BSEP in the middle of the outcome period?
Your results can differ sharply from the stated cap and buffer. The prospectus says the outcomes apply only to investors who hold from the start of the outcome period, September 1, until it ends on August 31. Someone who buys after a rally may have little upside left before the cap. The buffer a later buyer gets can also be larger or smaller than 9%. Innovator posts updated figures daily at innovatoretfs.com/bsep.
BSEP vs BUFR: what's the difference?
Both are buffer ETFs tied to U.S. stocks, but they differ in structure, cost and size. BSEP runs one September-to-August outcome period, so results depend on when you buy. The FT Vest Laddered Buffer ETF (BUFR), as its name suggests, spreads its holdings across different start dates. BUFR charges 0.95% to BSEP's 0.79%. It held about $10.5 billion as of August 31, 2026, compared with BSEP's $214 million as of July 31, 2026. Over the three years to October 27, 2026, BSEP returned 18.6% a year and BUFR returned 16.8%.
How did BSEP do in 2022 and the 2020 crash?
BSEP lost 9.08% in calendar 2022, its worst year since its 2019 launch, according to the prospectus. From January 4 to June 16, 2022, it fell 15%, and it took 11.9 months to regain its peak in June 2023. The 2020 COVID crash hit harder. It dropped 24% between February 19 and March 23, 2020, because the buffer applies at the end of the outcome period, not day to day. It recovered by July 20, 2020.
What is BSEP's expense ratio?
BSEP's expense ratio is 0.79% a year, all of it management fee, according to the prospectus filed February 27, 2026. That is below the 0.86% average of the similar buffer funds compared, and the same as Innovator's PJAN and PDEC. In the SEC's standard example, $10,000 earning 5% a year would cost about $81 after one year, $439 after five and $978 after ten. The fee also lowers the cap from 15.35% to 14.56% and the buffer from 9% to 8.21%.