At a glance
IOCT charges 0.85% a year, below the 0.86% average of the 7 funds most like it (the 3rd cheapest of 8). It has $168.0M in assets, the 8th largest of that group. Over the past year it returned +9.6% with distributions reinvested (S&P 500: +11.5%), 7th of those 8 funds; over three years it returned +14.1% a year. At its worst it fell 16.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 6 months after the low.
The short version
Innovator International Developed Power Buffer ETF - October (IOCT) uses FLEX options on the iShares MSCI EAFE ETF to give a limited version of that fund's returns over one-year periods that start each October. For the period ending September 30, 2026, it aimed to absorb the first 15% of losses while capping gains at 13.89%, before fees. It costs 0.85% a year and pays no regular income.
Price history
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IOCT +9.6% 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 | |
|---|---|---|---|---|---|---|
| IOCT official prospectus, to Dec 31, 2024 | — | +18.79% | — | — | — | +8.16% |
| IOCT price data to Oct 27, 2026 | +8.3% | +9.6% | +14.1% | +8.3% | — | +8.5% |
- Over the year to Oct 27, 2026, IOCT returned +9.6%, 7th of 8 among similar funds.
- Its 5-year annualized return was +8.3%.
- Its worst full calendar year was 2022 (-6.3%); its best was 2025 (+19.0%).
- The deepest fall in its price history was 16.9% (Nov 5, 2021 to Oct 12, 2022), recovered by May 5, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +8.3% | — |
| 2025 | +19.0% | +18.79% |
| 2024 | +4.9% | +4.93% |
| 2023 | +17.5% | +17.71% |
| 2022 | -6.3% | -6.05% |
| 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 | Lost 16.2% over that stretch · deepest drop along the way 16.4%, back to its old high 6.2 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 withdrew a net $16.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.59%, +0.77%, +1.45%.
How it works
IOCT does not pick stocks. It is built on the iShares MSCI EAFE ETF, which tracks the MSCI EAFE Index. That index weights large and mid-sized companies by market value across developed markets outside the US and Canada. The fund buys FLEX options on that ETF. These are exchange-traded options whose strike prices and expiration dates can be customized. As of July 31, 2026, four option positions made up about 99.8% of assets. A call option bought at a very low strike price supplies the market exposure. A put bought and a put sold create the buffer. A call sold sets the cap.
Each "outcome period" runs for about one year. For October 1, 2025 to September 30, 2026, the cap was 13.89% (13.04% after the 0.85% fee). The buffer covered the first 15% of losses (14.15% after fees). Losses beyond 15% are passed through one for one. In the prospectus examples, a 20% drop in the underlying ETF means a 5% fund loss, and a 50% drop means a 35% loss. When the period ends, the options expire and new ones are bought, which sets a new cap.
These outcomes apply only to shares held for the whole period and are measured at net asset value, not market price. Innovator is the adviser, and Milliman Financial Risk Management is the sub-adviser. The fund is classified as non-diversified.
What it really costs
- IOCT charges 0.85% a year, versus an average of 0.86% for the similar funds below (3rd of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $87 in the first year and $1,049 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| IOCT | $87 | $271 | $471 | $1,049 |
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 trades some upside in international developed-market stocks for a buffer against moderate losses over each one-year outcome period.
IOCT launched in October 2021, so it has no record from the 2008 or 2020 crashes. In the 2022 bear market, shares fell 16.4% from January 12 to October 12, 2022, and recovered by April 18, 2023, about six months later. Its deepest drop was 16.9%, starting November 5, 2021. It recovered by May 5, 2023. Yet its worst calendar year, 2022, ended down only 6.05% per the prospectus. That gap is the lesson: the buffer is measured over the full outcome period. Someone forced to sell in the middle of a bad stretch could lose more than the buffer suggests. The fund recorded no distributions, so it is not an income source. It costs 0.85% a year, or $87 in the first year on $10,000 under the SEC's standard example. 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 international developed-market stocks, through the MSCI EAFE Index, with a buffer against the first 15% of losses each outcome period.
- Holders who can buy close to the October 1 start and hold the full one-year period, when the cap and buffer apply as designed.
- Those who accept capped gains in exchange for smaller swings; one-year volatility was 8% and beta 0.5 as of October 27, 2026.
Look elsewhere if
- Investors who need regular income: the fund recorded no distributions, and its options give up the dividends paid by the underlying stocks.
- Anyone who may need to sell mid-period: shares fell 16.9% from peak to trough in 2021–2022 even though the full-year 2022 loss was 6.05%.
- Investors who want full participation in rallies: its one- and three-year returns ranked 7th of 8 among similar buffer funds as of October 27, 2026.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| IOCT this fund | 0.85% | $168.0M | +9.6% | +14.1% |
| 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 IOCT pay dividends?
No. The fund recorded no distributions. IOCT holds options on the iShares MSCI EAFE ETF rather than the stocks themselves. Options follow price changes, not dividends, so holders give up the dividend income the underlying international stocks pay. Any return comes from changes in the options' value. Investors who want regular cash payments from international stocks would need to look at funds that hold the shares directly.
What happens if I buy IOCT in the middle of the outcome period?
You may get very different results from the stated cap and buffer. Those figures are set on the first day of each period, October 1, and assume shares are held until the period ends. If the fund has already risen, less room is left under the cap. If it has fallen, part of the buffer may already be used up. Innovator posts daily updates on the remaining cap and buffer at innovatoretfs.com/ioct.
IOCT vs PJAN: what's the difference?
Both are Innovator Power Buffer ETFs that use FLEX options, but they track different markets. IOCT covers developed markets outside the US and Canada through the iShares MSCI EAFE ETF. Its period starts in October. PJAN covers US stocks, and its period starts in January. PJAN costs 0.79% against IOCT's 0.85%. As of October 27, 2026, PJAN returned 10.5% over one year and 14.8% a year over three, versus 9.6% and 14.1% for IOCT.
How much does IOCT cost?
IOCT's expense ratio is 0.85% a year, according to the prospectus filed February 27, 2026. In the SEC's standard example ($10,000 invested, 5% annual return), total costs are $87 after one year, $271 after three, $471 after five and $1,049 after ten. That is close to the 0.86% average of similar buffer funds and ranks 3rd cheapest of 8. Innovator's US Power Buffer funds PJAN and PDEC charge 0.79%.
Did IOCT protect investors in 2022?
Partly. Per the prospectus, IOCT lost 6.05% in calendar 2022, and its worst quarter was a 7.39% drop ending September 30, 2022. During the year, though, shares fell 16.4% from January 12 to October 12, because the buffer only applies at the end of the outcome period. The fund recovered by April 18, 2023. It then gained 17.71% in 2023, helped by a 10.72% rise in the last quarter of 2022.