At a glance
BSTP charges 0.89% a year, above the 0.86% average of the 7 funds most like it (the 6th cheapest of 8). It has $60.2M in assets, the 8th largest of that group. Over the past year it returned +9.2% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned +16.4% a year.
The short version
Innovator Buffer Step-Up Strategy ETF (BSTP) holds one-year FLEX options on the SPDR S&P 500 ETF Trust. It aims to deliver S&P 500 gains up to a cap, with a 9% buffer against losses. Unlike most buffer ETFs, it lets its sub-adviser, Milliman, reset the options each month to lock in gains or restore protection. It charges 0.89% a year and is small, with about $60 million in net assets as of July 31, 2026.
Price history
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BSTP +9.2% 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 | |
|---|---|---|---|---|---|---|
| BSTP official prospectus, to Dec 31, 2024 | — | +11.44% | — | — | — | +10.36% |
| BSTP price data to Oct 27, 2026 | +8.8% | +9.2% | +16.4% | — | — | +10.2% |
- Over the year to Oct 27, 2026, BSTP returned +9.2%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+11.8%); its best was 2023 (+18.1%).
- The deepest fall in its price history was 16.7% (Mar 29, 2022 to Oct 12, 2022), recovered by Jul 13, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +8.8% | — |
| 2025 | +11.8% | +11.44% |
| 2024 | +16.7% | +17.06% |
| 2023 | +18.1% | +18.15% |
| 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 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
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 $27K (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +3.03%, -0.38%, +0.37%.
How it works
BSTP is an actively managed fund from Innovator Capital Management, and Milliman Financial Risk Management is its sub-adviser. It does not own stocks directly. Instead, it holds FLEX Options, which are exchange-traded options with customizable terms and one-year expirations, on an ETF that tracks the S&P 500. As of July 31, 2026, four option positions on the SPDR S&P 500 ETF Trust made up nearly all of its $60.2 million in net assets. Cash was 0.09%.
Each options package is set up for a one-year result, before fees. If the underlying ETF falls by less than 9%, the fund aims to return 0%. If it falls by more, the fund aims to lose 9 percentage points less than the ETF. If the ETF rises, the fund aims to match the gain up to a cap.
The step-up is what makes BSTP different. Each month, Milliman checks how the options have moved. It may close them early and open a new one-year package, either to lock in gains or to rebuild the buffer after a decline. So the fund does not promise a set buffer or cap over any period, and results can differ a lot from holding one package to term. The fund is non-diversified, and like the S&P 500 it has heavy exposure to information technology.
What it really costs
- BSTP charges 0.89% a year, versus an average of 0.86% for the similar funds below (6th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $91 in the first year and $1,096 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| BSTP | $91 | $284 | $493 | $1,096 |
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
BSTP offers S&P 500 exposure with an options buffer that has historically cut its swings to about two-thirds of the market's.
BSTP could add a cushioned form of large US stock exposure. As of October 27, 2026, its one-year volatility was 8.3% and its beta was 0.66, meaning it moved about two-thirds as much as the market. The fund launched in March 2022, so it missed the 2008 and 2020 crashes and the start of the 2022 bear market. Even so, it fell 16.7% between March 29 and October 12, 2022, and took until July 13, 2023 to recover, nine months later. The buffer limits losses but does not prevent them, so someone drawing money during a slump could still lock in a loss. It had no losing full calendar year from 2023 to 2025. Its weakest year was 2025, at 11.44%, according to the prospectus. It pays no distributions. Its 0.89% fee is above the 0.86% peer average. Past results don't predict the future, 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% options buffer and accept capped gains in return.
- People worried about entry timing with single-period buffer funds, since Milliman may reset BSTP's options every month.
- Holders who prefer smaller swings: one-year volatility was 8.3% and beta 0.66 as of October 27, 2026.
Look elsewhere if
- Anyone who needs income, since BSTP has recorded no distributions.
- Cost-focused investors: its 0.89% fee is above the 0.86% peer average and Innovator's own 0.79% Power Buffer ETFs.
- Those who want a known buffer and cap for a set period, or a larger fund: BSTP was the smallest of eight peers.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| BSTP this fund | 0.89% | $60.2M | +9.2% | +16.4% |
| 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 BSTP pay dividends?
No. BSTP has recorded no distributions, so it is not a source of regular income. The fund holds options on the SPDR S&P 500 ETF Trust rather than the stocks themselves. Option holders do not receive the dividends that the underlying shares pay. Any return comes from changes in the fund's share price, and investors who rely on regular cash payments may need to draw them from other holdings.
How does the BSTP step-up strategy work?
Each month, sub-adviser Milliman reviews BSTP's one-year FLEX options on the SPDR S&P 500 ETF Trust. It may close them early and open a new one-year package, either to lock in gains or to rebuild the 9% buffer after a drop. The goal is to reduce the timing risk of holding one fixed options package. As a result, the fund does not promise a set buffer or cap over any specific period.
Is BSTP good for retirement?
It may suit retirees who want S&P 500 exposure with smaller swings. Its beta was 0.66 as of October 27, 2026. Even so, the fund fell 16.7% in 2022 and took nine months to recover, and it pays no income. Its 0.89% fee is above the 0.86% average for similar buffer funds. Its record goes back only to March 2022, and gains are capped in strong markets.
BSTP vs BUFR: what's the difference?
Both try to reduce the timing risk of buffer funds, but in different ways. BSTP resets one options package each month. FT Vest Laddered Buffer ETF (BUFR) is, as its name says, laddered, meaning it spreads money across buffer positions that start at different times. BUFR charges 0.95% compared with BSTP's 0.89%. It is far larger, at about $10.5 billion as of August 31, 2026. As of October 27, 2026, BUFR returned 11.6% over one year and 16.8% a year over three years. BSTP returned 9.2% and 16.4% over the same periods.
Can you lose money in BSTP?
Yes. The buffer covers only the first 9% of an S&P 500 ETF decline over a one-year options period, before fees. Because the options are reset early, even that level of protection is not guaranteed. BSTP's deepest drop was 16.7%, from March 29 to October 12, 2022. Its weakest quarter fell 3%, in the quarter ended March 31, 2025. The prospectus warns that a shareholder could lose their entire investment.