At a glance
KOCT charges 0.79% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $129.4M in assets, the 8th largest of that group. Over the past year it returned +12.9% with distributions reinvested (S&P 500: +11.5%), the best of those 8 funds; over three years it returned +15.8% a year. At its worst it fell 28.2% in the 2020 crash (S&P 500: 33.7%) and 14.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 13 months after the lows.
The short version
Innovator U.S. Small Cap Power Buffer ETF - October (KOCT) uses FLEX options on the iShares Russell 2000 ETF. It aims to match the returns of small U.S. company stocks up to a cap, with a buffer against the first 15% of losses over each one-year period starting October 1. Its 0.79% expense ratio is below the 0.86% average of similar buffer funds. The trade-offs are capped gains and no income in the last year.
Price history
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KOCT +12.9% 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 | |
|---|---|---|---|---|---|---|
| KOCT official prospectus, to Dec 31, 2024 | — | +10.43% | — | +5.41% | — | +5.49% |
| KOCT price data to Oct 27, 2026 | +12.7% | +12.9% | +15.8% | +6.8% | — | +6.7% |
- Over the year to Oct 27, 2026, KOCT returned +12.9%, 1st of 8 among similar funds.
- Its 5-year annualized return was +6.8%.
- In the 2020 COVID crash it fell 28.2% and regained its old high 8.2 months after the low.
- Its worst full calendar year was 2022 (-7.9%); its best was 2024 (+11.1%).
- The deepest fall in its price history was 28.2% (Feb 20, 2020 to Mar 18, 2020), recovered by Nov 24, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +12.7% | — |
| 2025 | +10.1% | +10.43% |
| 2024 | +11.1% | +10.99% |
| 2023 | +9.0% | +9.21% |
| 2022 | -7.9% | -7.82% |
| 2021 | +5.7% | +5.49% |
| 2020 | +2.6% | +2.51% |
| 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 | Lost 24.8% over that stretch · deepest drop along the way 28.2%, back to its old high 8.2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 12% over that stretch · deepest drop along the way 14.8%, back to its old high 12.8 months after the low |
Dividends and income
No distribution history is available for this fund.
Distributions through Oct 27, 2026.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 $18.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.08%, +1.92%, +0.24%.
How it works
Innovator runs KOCT, with Milliman Financial Risk Management as sub-adviser. Its results are tied to the iShares Russell 2000 ETF, which tracks the roughly 2,000 smallest companies in the Russell 3000 Index, weighted by market value. The fund mainly holds FLEX Options on that ETF: exchange-listed options with customized price levels and expiry dates. As of July 31, 2026, it held four, plus about 1.7% cash.
The options are arranged over one-year “outcome periods.” From October 1, 2025 to September 30, 2026, the fund sought to absorb the first 15% of the iShares ETF’s losses (14.21% after its 0.79% annual fee). Holders bore losses beyond 15% one for one. In exchange, gains were capped at 17.18% before fees, or 16.39% after. Before fees, a 20% fall in the ETF would mean a 5% fund loss; a 50% gain would return 17.18%.
When a period ends, the fund receives the cash value of its expiring options and buys a new set expiring about a year later, with a new cap set on day one. The outcomes apply only to shares held for the full period, measured at net asset value (the per-share value of holdings). Buying midway, selling early, or trading at a market price away from that value can produce very different results.
What it really costs
- KOCT 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 |
|---|---|---|---|---|
| KOCT | $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 dampened swings, but caps on gains and gaps in the buffer keep it from being a core or truly defensive holding.
KOCT could add small-cap stocks to a portfolio with milder swings. As of October 27, 2026, its one-year beta was 0.54 and its volatility was 8.4%. The buffer has limits, though. In the 2020 COVID crash the fund fell 28.2% from February 20 to March 18, 2020, and took about eight months to recover. In the 2022 bear market it dropped 14.8% and needed nearly 13 months to recover. Its worst calendar year was 2022, at -7.82%. It launched in 2019, so it has no record from 2008. Anyone forced to sell partway through an outcome period in a bad year may get much less than 15% of protection.
The fund paid no income in the last year, so any withdrawals would have to come from selling shares. In the SEC's standard $10,000 example, costs total $81 after one year and $978 after ten. 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 defined 15% buffer and can hold through each full October-to-September outcome period.
- Buffer-fund shoppers watching costs: its 0.79% expense ratio is below the 0.86% average of the seven similar buffer funds compared.
- People willing to give up big gains, such as returns above the 17.18% pre-fee cap for the period ending September 30, 2026, for smaller swings.
Look elsewhere if
- Investors who need income from their holdings: the fund made no distributions in the last year.
- Buyers who would enter mid-period or trade often, since their results can differ sharply from the stated cap and buffer.
- Those who prefer larger funds: KOCT had $129.4 million in net assets as of July 31, 2026, the smallest of eight similar funds.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| KOCT this fund | 0.79% | $129.4M | +12.9% | +15.8% |
| 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 KOCT pay dividends?
No. KOCT made no distributions in the last year, and its trailing yield was 0% as of October 27, 2026. The fund holds FLEX options on the iShares Russell 2000 ETF rather than the stocks themselves, so returns show up as changes in share price. Investors who want cash flow from a holding would need to sell shares or look at funds built to pay income.
How does the KOCT buffer work?
For holders who own shares for a full one-year outcome period, KOCT aims to absorb the first 15% of losses in the iShares Russell 2000 ETF, or 14.21% after its 0.79% fee. Losses beyond 15% pass through one for one, so a 20% drop would mean about a 5% loss before fees. Investors who buy partway through a period or sell early may get much more or much less protection.
What is the KOCT upside cap?
For the outcome period from October 1, 2025 to September 30, 2026, the cap was 17.18% before fees, or 16.39% after the 0.79% management fee. Even if the iShares Russell 2000 ETF rose 50%, the fund's pre-fee return would stop at 17.18%. A new cap is set on the first day of each outcome period and may differ. Innovator posts daily updates at www.innovatoretfs.com/koct.
What's the difference between KOCT and PJAN?
Both come from Innovator, use the same power buffer design, and charge 0.79%. KOCT's options are tied to the iShares Russell 2000 ETF (small companies) and reset each October. By its name, PJAN tracks U.S. equities and resets in January. PJAN is much larger, at $1.4 billion in net assets versus KOCT's $129.4 million as of July 31, 2026. As of October 27, 2026, KOCT returned 12.9% over one year and 15.8% a year over three years, compared with PJAN's 10.5% and 14.8%.
How much did KOCT lose in 2020 and 2022?
In the 2020 COVID crash, KOCT fell 28.2% from February 20 to March 18, 2020, even with its buffer. It recovered by November 24, 2020, about eight months later. In 2022 it fell 14.8% from January to June and took nearly 13 months to recover. Its 2022 calendar-year return was -7.82%. Its worst calendar quarter was -17.89%, in the first quarter of 2020.