At a glance
BUFB charges 0.89% a year, above the 0.86% average of the 7 funds most like it (the 6th cheapest of 8). It has $319.9M in assets, the 8th largest of that group. Over the past year it returned +12.2% with distributions reinvested (S&P 500: +11.5%), 4th of those 8 funds; over three years it returned +18.0% a year. Its ten largest positions make up 83.8% of the fund, out of 12 in all.
The short version
Innovator Laddered Allocation Buffer ETF (BUFB) is a fund of funds that tracks the MerQube U.S. Large Cap Equity Buffer Laddered Index. It holds 12 Innovator U.S. Equity Buffer ETFs in roughly equal amounts, one for each month. Each uses options to absorb the first 9% of S&P 500 losses over about a year, and in return its gains are capped. The monthly reset dates spread out timing risk, and the fund charges 0.89% a year.
Price history
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BUFB +12.2% 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 | |
|---|---|---|---|---|---|---|
| BUFB official prospectus, to Dec 31, 2024 | — | +13.31% | — | — | — | +10.39% |
| BUFB price data to Oct 27, 2026 | +10.8% | +12.2% | +18.0% | — | — | +11.0% |
- Over the year to Oct 27, 2026, BUFB returned +12.2%, 4th of 8 among similar funds.
- Its worst full calendar year was 2025 (+13.4%); its best was 2023 (+20.5%).
- The deepest fall in its price history was 14.9% (Mar 29, 2022 to Oct 14, 2022), recovered by Jun 9, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +10.8% | — |
| 2025 | +13.4% | +13.31% |
| 2024 | +16.4% | +16.33% |
| 2023 | +20.5% | +20.44% |
| 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 12 securities; the ten largest made up 83.79% of assets.
| Fund held | Weight | |
|---|---|---|
| Innovator U.S. Equity Buffer ETF - November | 8.43% | |
| Innovator U.S. Equity Buffer ETF -December | 8.43% | |
| Innovator U.S. Equity Buffer ETF - October | 8.42% | |
| Innovator U.S. Equity Buffer ETF - August | 8.40% | |
| Innovator U.S. Equity Buffer ETF - February | 8.39% | |
| Innovator U.S. Equity Buffer ETF - September | 8.39% | |
| Innovator U.S. Equity Buffer ETF - January | 8.39% | |
| Innovator U.S. Equity Buffer ETF - March | 8.35% | |
| Innovator U.S. Equity Buffer ETF - July | 8.30% | |
| Innovator U.S. Equity Buffer ETF April | 8.29% | |
| Innovator U.S. Equity Buffer ETF - May | 8.12% | |
| Innovator U.S. Equity Buffer ETF - June | 8.00% |
By country
United States 99.91%By asset type
Stocks 99.91%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $24.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.53%, -0.02%, +0.67%.
How it works
BUFB tracks the MerQube U.S. Large Cap Equity Buffer Laddered Index, which MerQube, Inc. builds and calculates. The fund invests at least 80% of its net assets in the index's 12 underlying funds. These are Innovator's U.S. Equity Buffer ETFs, one named for each month, from BJAN to BDEC. On the third Wednesday of April and October, the index resets each one to 1/12 of the portfolio. Between those dates, the weights drift. As of July 31, 2026, each fund made up between 8.0% and 8.4% of assets.
Each underlying ETF follows an ETF that tracks the S&P 500. It does so over an outcome period of about one year that starts on the first day of the month in its name. Using options, it aims to absorb the first 9% of losses over that period. This is the buffer. In exchange, its gains are limited to a maximum, called the cap, which is set at each reset. Losses beyond 9% pass through to the investor.
Laddering means one of the 12 funds resets every month, which gives it a fresh buffer and a new cap. BUFB usually buys and sells these funds partway through their periods, so it holds a mix of partly used buffers and caps. The prospectus warns that at times every underlying fund could have hit its cap, or none could have buffer left. That can last until the next monthly reset.
What it really costs
- BUFB charges 0.89% a year, versus an average of 0.86% for the similar funds below (6th of 8, cheapest first).
- Of that, 0.1% is the management fee; the rest covers other fund expenses.
- 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 |
|---|---|---|---|---|
| BUFB | $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.
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
BUFB keeps stock-market exposure, but its 9% buffers and caps have made it swing far less than the market.
BUFB could serve as a lower-volatility stock holding. As of October 27, 2026, its one-year volatility was 7.8% and its beta was 0.59. Beta measures how much a fund moves with the market, so 0.59 means it moved a bit more than half as much. The fund launched in February 2022. That means it missed the 2008 and 2020 crashes and the start of the 2022 bear market. Its deepest drop was 14.9%, from March 29 to October 14, 2022. It got back to its earlier high by June 9, 2023, about eight months later. Its weakest full calendar year was still a gain of 13.31% in 2025. An investor selling in a bad year would still bear any losses beyond the buffers. The fund has paid no distributions, so drawing cash means selling shares. Its costs are 0.89% a year. 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% buffer in each underlying fund, and who accept capped upside in return.
- Holders who prefer one ticker that spreads buffer timing across 12 monthly reset dates rather than picking a single entry date.
- Portfolios seeking smoother stock returns: one-year volatility was 7.8% and beta 0.59 as of October 27, 2026.
Look elsewhere if
- Investors who need regular income: the fund has recorded no distributions, so cash comes only from selling shares.
- Cost-focused investors: the 0.89% expense ratio is above the 0.86% average of similar buffer funds and ranks 6th of 8.
- Those wanting deeper protection or a long record: losses beyond 9% pass through, history starts in 2022, and deep-buffer funds like BUFD exist.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| BUFB this fund | 0.89% | $319.9M | +12.2% | +18.0% |
| 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
Can you lose money in BUFB?
Yes. Each of BUFB's 12 underlying Innovator ETFs buffers only the first 9% of S&P 500 losses over its one-year outcome period. Losses beyond that pass through. BUFB also buys those funds partway through their periods, so some buffers may already be partly used. From March 29 to October 14, 2022, the fund fell 14.9%. Its weakest quarter in the prospectus was a 2.72% loss in the first quarter of 2025.
What's the difference between BUFB and BUFR?
Both are laddered buffer ETFs that hold funds with different reset dates. BUFB holds 12 Innovator funds with a 9% buffer each and charges 0.89%. FT Vest Laddered Buffer ETF (BUFR) charges 0.95%. BUFR is much larger: about $10.5 billion in net assets as of August 31, 2026, against about $320 million for BUFB as of July 31, 2026. As of October 27, 2026, BUFB returned 12.2% over one year and BUFR 11.6%. Over three years, BUFB returned 18.0% a year and BUFR 16.8%.
Does BUFB pay dividends?
No. BUFB has recorded no distributions. Its returns have come from changes in its share price, which follows the 12 underlying buffer ETFs it holds. That sets it apart from income-focused funds: anyone who needs cash from BUFB has to sell shares. Turnover was 1% according to the prospectus, so its twice-yearly rebalancing trades have been small. Those trades are when it buys and sells the underlying ETFs to bring them back to equal weights.
How much does BUFB cost?
BUFB's expense ratio is 0.89%, according to its prospectus filed February 27, 2026. Its management fee is 0.10%. Because it is a fund of funds, its total expense ratio generally also includes the costs of the underlying ETFs. The SEC's standard example assumes $10,000 invested with a 5% annual return. On that basis, costs come to about $91 after one year, $284 after three, $493 after five and $1,096 after ten. Similar buffer funds average 0.86% and range from 0.79% to 0.95%.
Is BUFB good for retirement?
It may suit retirees who want stock exposure with smaller swings. As of October 27, 2026, its one-year volatility was 7.8% and its beta was 0.59. According to its prospectus, it gained 20.44% in 2023, 16.33% in 2024 and 13.31% in 2025. There are tradeoffs. Caps limit gains in strong markets, it pays no distributions, and it costs 0.89% a year. Its history also starts in 2022, so it has not been tested in a crash like 2008 or 2020.