At a glance
KFEB charges 0.79% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $41.1M in assets, the 8th largest of that group. Over the past year it returned +12.4% with distributions reinvested (S&P 500: +11.5%), 3rd of those 8 funds.
The short version
Innovator U.S. Small Cap Power Buffer ETF - February (KFEB) uses FLEX options on the iShares Russell 2000 ETF. It aims to deliver small-company stock returns up to a cap and to cushion the first 15% of losses over each February-to-January outcome period. Its 0.79% expense ratio is below the 0.86% average of similar buffer funds. With $41 million in net assets as of July 31, 2026, it is also the smallest of them.
Price history
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KFEB +12.4% 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 | |
|---|---|---|---|---|---|---|
| KFEB price data to Oct 27, 2026 | +12.7% | +12.4% | — | — | — | +12.5% |
- Over the year to Oct 27, 2026, KFEB returned +12.4%, 3rd of 8 among similar funds.
- The deepest fall in its price history was 14.2% (Feb 5, 2025 to Apr 8, 2025), recovered by Jul 10, 2025.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +12.7% |
| 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 $15.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.05%, +1.87%, -0.32%.
How it works
KFEB does not own small-company stocks directly. It puts at least 80% of its net assets into investments that track the iShares Russell 2000 ETF. That fund follows a float-adjusted, market-cap-weighted index of about the 2,000 smallest companies in the Russell 3000 Index. KFEB gets this exposure through FLEX options, which are exchange-listed options with custom strike prices and expiration dates. Innovator is the adviser and Milliman is the sub-adviser. As of July 31, 2026, four option positions made up 99.79% of assets, and cash made up 0.27%.
The options work together. A deep in-the-money call (strike 2.6) tracks the Russell 2000 ETF. A bought put at 259.65 and a sold put at 220.7 create the 15% buffer. A sold call at 305.43 sets the cap. For February 1, 2026 to January 31, 2027, the cap is 17.63% before fees (16.84% after the 0.79% fee). The buffer is 15% before fees (14.21% after). Losses beyond 15% pass through one-for-one: if the underlying ETF fell 20%, the fund would aim for a 5% loss before fees.
These outcomes apply only to shares held for the whole period. Buyers who come in mid-period can get very different results. Innovator posts the remaining cap and buffer daily at innovatoretfs.com/kfeb. At the end of each period, the options settle in cash and a new one-year set is bought.
What it really costs
- KFEB 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 |
|---|---|---|---|---|
| KFEB | $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 adds small-company stock exposure, with a cushion against moderate losses, to a portfolio that may lean on large companies.
KFEB has a short record. It launched February 3, 2025, so it missed the 2008, 2020 and 2022 sell-offs, and it has no full calendar year of results. Its deepest drop was 14.2%, from February 5 to April 8, 2025. It recovered by July 10, 2025, about three months later. That drop came during an outcome period, which shows the buffer only fully applies at the period's end. Someone who has to sell mid-period gets that day's market price. The fund has recorded no distributions, so it offers no income. It costs 0.79% a year. In the SEC's standard $10,000 example, that comes to $81 after one year and $978 after 10 years. Past results don't predict future returns, 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 and will accept a 17.63% pre-fee cap in exchange for a buffer on the first 15% of losses.
- Holders who can buy near February 1 and hold until January 31, when the stated buffer and cap fully apply.
- Cost-conscious buyers of buffer funds: its 0.79% fee matches Innovator's PJAN and PDEC and is below FT Vest funds at 0.85%–0.95%.
Look elsewhere if
- Income seekers: the fund has recorded no distributions, since it holds options on the Russell 2000 ETF rather than the stocks.
- Anyone wanting protection from deep crashes: losses beyond 15% pass through one-for-one, and the fund didn't exist in 2008, 2020 or 2022.
- Investors wary of small funds: $41 million in net assets as of July 31, 2026, the smallest of its peers, with about $15.8 million in net outflows over three months.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| KFEB this fund | 0.79% | $41.1M | +12.4% | — |
| 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
What is KFEB's buffer and cap?
For the outcome period from February 1, 2026 to January 31, 2027, KFEB aims to absorb the first 15% of losses in the iShares Russell 2000 ETF. In return, its gains are capped at 17.63%. Both figures are before fees. After the 0.79% management fee, they become a 14.21% buffer and a 16.84% cap. Losses beyond 15% are passed on to shareholders one-for-one, and the cap is reset each February.
Does KFEB pay dividends?
No. KFEB has recorded no distributions, so it has no yield to report. The fund holds FLEX options on the iShares Russell 2000 ETF instead of the underlying stocks, so it does not pass through their dividends. Its return comes only from how the options perform within the buffer and cap. Investors who want regular income from small-company stocks would need to look at funds that hold the shares directly.
What happens if I buy KFEB in the middle of the outcome period?
Your results can differ a lot from the stated 15% buffer and 17.63% cap. Those outcomes apply only to shares held from February 1 to January 31. If the underlying ETF has already risen, you may have little upside left before the cap. If it has fallen, part of the buffer may already be used up. Innovator publishes the remaining cap and buffer daily at innovatoretfs.com/kfeb, which is worth checking before buying.
What's the difference between KFEB and PJAN?
Both are Innovator Power Buffer ETFs, and both charge 0.79%. KFEB is built on the iShares Russell 2000 ETF, which holds small U.S. companies, and resets each February. PJAN tracks U.S. equity more broadly and resets in January. PJAN is much larger: $1.4 billion in net assets versus about $41 million for KFEB, both as of July 31, 2026. Over one year to October 27, 2026, KFEB returned 12.4% and PJAN returned 10.5%.
How has KFEB performed since launch?
KFEB returned 12.4% over the year to October 27, 2026, and 12.73% for 2026 through that date. That one-year figure ranked third among eight similar buffer funds. Over one year, its volatility was 10.1% and its beta was 0.63, which means it moved less than the market it was measured against. Its deepest drop was 14.2% in early 2025, and it recovered in about three months. The fund launched in February 2025, so it has no long-term record.