At a glance
HOCT charges 0.79% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $7.8M in assets, the 8th largest of that group. Over the past year it returned +0.0% with distributions reinvested, the weakest of those 8 funds; over three years it returned +4.9% a year.
The short version
Innovator Premium Income 9 Buffer ETF - October (HOCT) holds U.S. Treasury bills and options on the SPDR S&P 500 ETF Trust. It aims to pay monthly income, with a buffer against the first 9% of that fund's losses over each October-to-September period. It gives up all S&P 500 gains in exchange for that income, which was set at 6.85% before fees for the period ending September 30, 2025. Its 0.79% fee ties for lowest among similar buffer funds.
Price history
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HOCT 0.0% 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 | |
|---|---|---|---|---|---|---|
| HOCT price data to Oct 27, 2026 | 0.0% | 0.0% | +4.9% | — | — | +4.6% |
- Over the year to Oct 27, 2026, HOCT returned 0.0%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+4.7%); its best was 2024 (+5.8%).
- The deepest fall in its price history was 6.6% (Feb 19, 2025 to Apr 8, 2025), recovered by May 12, 2025.
Show as a table
| Year | Price data |
|---|---|
| 2025 | +4.7% |
| 2024 | +5.8% |
| 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 |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $1.0800 | -36.8% |
| 2024 | $1.7100 |
What's inside
As of Jul 31, 2025, the fund held 2 securities; the ten largest made up 100.23% of assets.
| Holding | Weight | |
|---|---|---|
| TREASURY BILL Bonds and notes | 99.72% | |
| TREASURY BILL Bonds and notes | 0.51% |
By country
United States 100.23%By issuer
US Treasury 100.23%The bonds mature in 0.2 years on average (weighted by size), with an average coupon of 0%.
Source: N-PORT holdings report as of Jul 31, 2025. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2025, investors withdrew a net $5.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.10%, +1.06%, +0.56%.
How it works
HOCT is an actively managed ETF from Innovator, and it owns no stocks. It holds U.S. Treasury bills plus FLEX Options on the SPDR S&P 500 ETF Trust (SPY). FLEX Options are exchange-traded options with customizable strike prices and expiration dates. Each outcome period runs from October 1 to September 30. At the start of each one, the fund fixes an annual payout rate, called the Defined Distribution Rate. It is paid monthly from bill interest and option premiums. The rate was 6.85% before fees for the period ending September 30, 2025, and it can change each period.
The buffer absorbs the first 9% of SPY's price loss, before fees. It is measured only at the end of the period and is not guaranteed. Shareholders bear losses beyond 9% one-for-one and get none of SPY's gains. People who buy after the period starts may not get the full buffer. If the fund has risen, their protection begins only once it falls back to its starting value. A new 9% buffer starts each October.
As of July 31, 2025, the fund had 99.7% in one Treasury bill and 0.5% in another. It also held an SPY put option expiring September 30, 2025, with a $522.14 strike, valued at about −0.2% of assets. A negative value usually means the fund sold the option: it collected a premium and takes on SPY's losses below that strike. The bills averaged about 0.2 years to maturity, so interest-rate changes barely move their prices.
What it really costs
- HOCT 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 |
|---|---|---|---|---|
| HOCT | $81 | $252 | $439 | $978 |
Structure and tax notes
- Organized as a unit investment trust: it cannot lend out its securities or reinvest dividends between payouts, which can create a small drag versus similar open-end ETFs.
- 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.
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
It is built to pay a preset monthly distribution from Treasury bill interest and option premiums, not to grow with stocks.
HOCT aims to pay monthly income. It paid out at a 6.85% rate before fees for October 1, 2024 to September 30, 2025, with a buffer against the first 9% of S&P 500 ETF losses. It launched in 2023, so it has no record from 2008, 2020 or 2022. Its worst calendar year, 2025, was still a 4.7% gain. Its deepest drop was 6.6%, from February 19 to April 8, 2025, and it recovered by May 12. For retirees who sell shares, the buffer counts only at the end of the period. Selling partway through locks in any interim loss, and losses beyond 9% pass through in full.
It charges 0.79% a year: $81 on $10,000 in year one, per the SEC's example. It paid no distributions and its price ended flat in the year to October 27, 2026, so whether shares still trade is worth checking with Innovator. Past results don't predict the future. A plan should weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors willing to give up all S&P 500 gains for a set monthly payout, 6.85% before fees for October 2024 to September 2025.
- Buyers who can get in near October 1 and hold to September 30, the window over which the 9% buffer is measured.
- Those wanting a calmer ride: volatility was 4.6% over three years to October 27, 2026, and its deepest drop, 6.6%, recovered in about 1.1 months.
Look elsewhere if
- Those seeking growth: it gives up all S&P 500 gains and ranked last of eight buffer funds on one- and three-year returns to October 27, 2026.
- Investors needing protection in a deep crash: losses beyond 9% pass through one-for-one, and the buffer applies only over the full October-to-September period.
- Those wary of tiny funds: assets were $7.75 million on July 31, 2025, and no distributions were paid in the year to October 27, 2026.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| HOCT this fund | 0.79% | $7.8M | 0.0% | +4.9% |
| 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 HOCT pay monthly dividends?
It is designed to pay monthly. Shareholders of record on the last business day of each month are paid on the first business day of the next. The amount follows a Defined Distribution Rate set each period: 6.85% before fees for October 1, 2024 to September 30, 2025. The cash comes from Treasury bill interest and option premiums, not stock dividends. However, no distributions were paid in the year to October 27, 2026, so the fund's status is worth checking with Innovator.
Can you lose money in HOCT?
Yes. The prospectus warns that investors could lose money. The buffer covers only the first 9% of SPDR S&P 500 ETF Trust losses, before fees, over a full October-to-September period. Shareholders take losses beyond that one-for-one. The buffer is measured only at the end of the period, so the price can fall along the way. HOCT dropped 6.6% from February 19 to April 8, 2025, before recovering by May 12, 2025.
What happens if I buy HOCT after October 1?
You may not get the full 9% buffer. HOCT's outcomes are designed for shareholders who hold from October 1 to September 30. If the fund has already fallen past the buffer, a new buyer may not benefit from it at all. If the fund has risen, a new buyer has no buffer until it falls back to its starting value. Either way, the buffer is measured only at the end of the period, and a new 9% buffer starts each October.
What's the difference between HOCT and PJAN?
Both are Innovator buffer ETFs that charge 0.79% a year, but HOCT gives up all S&P 500 gains for a set monthly distribution. Its buffer covers the first 9% of losses over each October-to-September period. PJAN, as its name says, is a U.S. equity buffer fund. It is also far larger: $1.44 billion in net assets as of July 31, 2026, against $7.75 million for HOCT as of July 31, 2025. In the year to October 27, 2026, PJAN returned 10.5% and HOCT returned 0%.
Is HOCT's expense ratio high?
No, not compared with similar funds. HOCT's expense ratio is 0.79%, according to its prospectus filed February 28, 2025. That ties with Innovator's PJAN and PDEC for lowest among the eight buffer funds compared, against a 0.86% average for the other seven. In the SEC's standard example, $10,000 earning 5% a year costs about $81 after one year, $252 after three, $439 after five and $978 after ten. The 6.85% distribution rate and 9% buffer are stated before these fees.