At a glance
KDEC charges 0.79% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $72.6M in assets, the 8th largest of that group. Over the past year it returned +9.5% with distributions reinvested (S&P 500: +11.5%), 7th of those 8 funds.
The short version
Innovator U.S. Small Cap Power Buffer ETF - December (KDEC) uses FLEX options on the iShares Russell 2000 ETF to offer small-company stock returns with a cushion and a ceiling. Over the year ending November 30, 2026, it aims to absorb the first 15% of losses while capping gains at 18.09%, before fees. Its 0.79% fee ties for the lowest among similar buffer funds, but it has recorded no distributions.
Price history
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KDEC +9.5% 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 | |
|---|---|---|---|---|---|---|
| KDEC official prospectus, to Dec 31, 2024 | — | +7.17% | — | — | — | +2.54% |
| KDEC price data to Oct 27, 2026 | +11.1% | +9.5% | — | — | — | +6.9% |
- Over the year to Oct 27, 2026, KDEC returned +9.5%, 7th of 8 among similar funds.
- Its worst full calendar year was 2025 (+6.5%); its best was 2025 (+6.5%).
- The deepest fall in its price history was 16.5% (Dec 2, 2024 to Apr 8, 2025), recovered by Aug 22, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +11.2% | — |
| 2025 | +6.5% | +7.17% |
| 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 $15.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.01%, +1.86%, 0.00%.
How it works
KDEC does not buy small-company stocks directly. It holds FLEX options, which are exchange-traded options with custom strike prices and expiration dates, on the iShares Russell 2000 ETF. That ETF tracks the roughly 2,000 smallest companies in the Russell 3000 Index, weighted by market value. 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 Russell 2000 ETF, all expiring in November, plus 0.31% in cash.
The options are set up to produce a defined result over a one-year "outcome period," here December 1, 2025 to November 30, 2026. If the Russell 2000 ETF falls 15% or less, the fund aims to end flat. Losses past 15% pass through one for one, so a 50% drop would mean about a 35% loss. Gains stop at 18.09%. After the 0.79% fee, the cap is 17.30% and the buffer is 14.21%. At the end of each period the options are cashed out and new one-year options are bought, which resets the cap and buffer.
These results apply only to shares held for the whole period. Anyone who buys after December 1 or sells early may get very different results. Innovator posts the remaining cap and buffer daily at innovatoretfs.com/kdec. The fund is also non-diversified, and its market price can drift from the value of its holdings.
What it really costs
- KDEC 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 |
|---|---|---|---|---|
| KDEC | $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 aims to absorb the first 15% of yearly small-cap losses in exchange for capped gains, and its beta was 0.54 over the year to October 27, 2026, so it moved about half as much as the broad market.
KDEC could soften the small-company part of a portfolio, but its record is short. It launched in December 2024, so it was not around for the 2008, 2020 or 2022 downturns. Its only full calendar year, 2025, returned 7.17%, according to the prospectus filed February 27, 2026. Its deepest drop was 16.5%, from December 2, 2024 to April 8, 2025. It recovered by August 22, 2025, about 4.5 months later. That drop shows the buffer is built for the end of the outcome period. Someone who has to sell in the middle of a slump could lose more than 15%. The fund has recorded no distributions, so it provides no income. In the SEC's standard example of $10,000 invested, costs come to $81 for one year and $978 over ten years. 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 who want Russell 2000 small-cap exposure with a 15% yearly loss buffer and can accept gains capped at 18.09% before fees.
- Buyers who can invest near the December 1 reset and hold for the full year, which is when the stated cap and buffer apply.
- Cost-conscious buffer investors: its 0.79% expense ratio is below the 0.86% average for similar buffer funds.
Look elsewhere if
- Anyone who needs income from their portfolio: the fund has recorded no distributions.
- Investors who want a long record: it launched in December 2024 and has never been through a bear market like 2008 or 2022.
- Those who prefer bigger funds: with $72.6 million in net assets as of July 31, 2026, it is the smallest of eight similar buffer funds.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| KDEC this fund | 0.79% | $72.6M | +9.5% | — |
| 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
What is KDEC's cap and buffer?
For the outcome period from December 1, 2025 to November 30, 2026, KDEC aims to absorb the first 15% of losses in the iShares Russell 2000 ETF and caps gains at 18.09%. Those figures are before fees. After the 0.79% management fee, the cap is 17.30% and the buffer is 14.21%. Both reset every December, when the fund buys new one-year FLEX options, so later periods will have different caps.
Does KDEC pay dividends?
No. KDEC has recorded no distributions. Its returns come from FLEX options linked to the iShares Russell 2000 ETF, not from passing stock dividends through to shareholders. Investors who want regular payouts from a retirement portfolio would need to get that income from other holdings, or by selling shares. Selling in the middle of an outcome period can lock in results that differ from the stated cap and buffer.
What's the difference between KDEC and PDEC?
Both are Innovator Power Buffer ETFs that charge 0.79% and reset each December. The main difference is what they track. KDEC uses options on the iShares Russell 2000 ETF, which holds small companies. PDEC is Innovator's U.S. Equity Power Buffer fund. As of October 27, 2026, PDEC returned 11.6% over one year, compared with KDEC's 9.5%. PDEC is also much larger, with $984 million in net assets versus KDEC's $72.6 million as of July 31, 2026.
What happens if you buy KDEC in the middle of the year?
You may not get the stated cap and buffer. The 18.09% cap and 15% buffer apply only to shares held from December 1 through November 30. If the fund has already risen, less upside may remain before the cap, and the buffer may be smaller or not start until after some loss. Innovator posts the remaining cap and buffer every day at innovatoretfs.com/kdec, so buyers can check them before investing.
Can you lose money in KDEC?
Yes. The buffer covers only the first 15% of the Russell 2000 ETF's losses over a full outcome period, or 14.21% after fees. Losses past that pass through one for one. In the prospectus examples, a 50% drop in the underlying ETF means a 35% loss for the fund. Mid-period losses can also be larger than the buffer suggests: from December 2, 2024 to April 8, 2025, KDEC fell 16.5% before recovering by August 22, 2025.