At a glance
OCTD charges 0.79% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $5.4M 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 +6.1% a year.
The short version
Innovator Premium Income 10 Barrier ETF - October (OCTD) holds Treasury bills and S&P 500 options. It seeks to pay a preset income rate over each October-to-September period, which was 8.29% before fees for the period ending September 30, 2025. Unlike buffer funds, it isn't built to share in stock gains. Its barrier protects holders if the S&P 500 ends a period down 10% or less, but past an 11% drop the fund takes the full loss.
Price history
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OCTD 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 | |
|---|---|---|---|---|---|---|
| OCTD price data to Oct 27, 2026 | 0.0% | 0.0% | +6.1% | — | — | +5.6% |
- Over the year to Oct 27, 2026, OCTD returned 0.0%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+5.6%); its best was 2024 (+6.9%).
- The deepest fall in its price history was 10.1% (Feb 19, 2025 to Apr 8, 2025), recovered by May 12, 2025.
Show as a table
| Year | Price data |
|---|---|
| 2025 | +5.6% |
| 2024 | +6.9% |
| 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 | $1.3500 | -35.7% |
| 2024 | $2.1000 |
What's inside
As of Jul 31, 2025, the fund held 1 securities; the ten largest made up 100.36% of assets.
| Holding | Weight | |
|---|---|---|
| TREASURY BILL Bonds and notes | 100.36% |
By country
United States 100.36%By issuer
US Treasury 100.36%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 added a net $0.00 (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +3.13%, +1.60%, +0.77%.
How it works
OCTD is an actively managed Innovator ETF. It holds Treasury bills (short-term US government debt) and FLEX options, which are exchange-traded options with customized terms. The options are tied to the S&P 500 Price Return Index. Each outcome period runs from October 1 to September 30. At the start, the fund sets a yearly payout rate, called the Defined Distribution Rate. It was 8.29% before fees for the period ending September 30, 2025. The quarterly payouts come from T-bill interest plus option premiums.
The barrier is measured only on the period's last day, against the index level on day one. If the S&P 500 ends down 10% or less, holders aren't expected to lose money. If it ends down between 10% and 11%, fund losses climb steeply from 0% to 11%. Beyond 11%, the fund loses as much as the index, and the prospectus warns of possible total loss. Returns are designed to equal the payouts minus any such losses, so rising stocks add nothing extra.
On July 31, 2025, a single Treasury bill made up about 100.4% of net assets. The fund also held S&P 500 put options (contracts that gain value when the index falls below a set price) expiring September 30, 2025. A new barrier and payout rate are set each period. Partway through a period, the share price can stray from these targets, so the timing of entry and exit matters.
What it really costs
- OCTD 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 |
|---|---|---|---|---|
| OCTD | $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.
- 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
The fund's purpose is a preset payout from Treasury bill interest and option premiums, but that income comes with full stock-market losses if the S&P 500 ends a period down more than 11%.
OCTD could add a preset income stream: 8.29% before its 0.79% fee for the period ending September 30, 2025, paid quarterly. It launched October 2, 2023, after the 2008, 2020 and 2022 downturns. So there's no record of a period ending with the S&P 500 down more than 11%, the point where full losses apply. In 2025, the weaker of its two calendar years, it gained 5.6%. Still, its price fell 10.1% from February 19 to April 8, 2025, and recovered by May 12. Anyone cashing out during a dip like that could lock in a loss, because the barrier counts only at period-end.
It returned 0% and paid nothing in the year to October 27, 2026, and net assets were $5.4 million on July 31, 2025. Whether it still trades is worth checking. 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
- Income-focused investors wanting a payout rate set in advance (8.29% before fees for October 2024 to September 2025), funded by Treasury bills and option premiums.
- Those comfortable betting that the S&P 500 ends each October-to-September period down no more than 10%, and able to hold for the full period.
- Cost-aware defined-outcome investors: its 0.79% expense ratio ties for lowest among eight similar funds, below the other seven's 0.86% average.
Look elsewhere if
- Anyone wanting growth: returns are designed to match the payout rate. Its three-year return, 6.1% a year to October 27, 2026, trailed all seven peers.
- Retirees who can't absorb a deep crash: if the S&P 500 ends a period down more than 11%, the fund takes the full loss.
- Those wanting a large fund with steady payouts: assets were $5.4 million on July 31, 2025, with no distributions 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 |
|---|---|---|---|---|
| OCTD this fund | 0.79% | $5.4M | 0.0% | +6.1% |
| 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
How does the 10% barrier in OCTD work?
The barrier protects holders only from S&P 500 declines of 10% or less, measured from October 1 to September 30. If the index ends the period down 10% or less, holders aren't expected to lose money. If it ends down between 10% and 11%, fund losses climb steeply from 0% to 11%. Beyond that, the fund loses as much as the index. Unlike a buffer, it gives no protection once the drop passes 11%. It also doesn't limit price swings partway through a period.
Does OCTD pay monthly dividends?
No. The prospectus describes quarterly payments. Holders of record on the last business day of March, June, September and December are paid on the first business day of the next month. For October 1, 2024 to September 30, 2025, the distribution rate was 8.29% before fees, funded by Treasury bill interest and option premiums. However, no distributions were recorded in the 12 months to October 27, 2026, leaving its trailing yield at 0%.
Is OCTD good for retirement income?
It can supply income, but with more risk than its Treasury bill holdings suggest. Its 8.29% pre-fee distribution rate for the period ending September 30, 2025 came partly from option premiums. The fund earns those premiums by taking on S&P 500 losses beyond 10%. Its price fell 10.1% between February 19 and April 8, 2025, before recovering by May 12. It also returned 0% and paid nothing in the year to October 27, 2026. Its net assets were only $5.4 million on July 31, 2025.
What's the difference between OCTD and PJAN?
PJAN shares in stock gains up to a cap; OCTD doesn't. Both are Innovator ETFs charging 0.79%. PJAN, a buffer fund, uses options to cushion a set range of losses. OCTD's return is designed to equal its distribution rate, and its protection gives way once the S&P 500 ends a period down more than 10%. As of October 27, 2026, PJAN returned 14.8% a year over three years, compared with 6.1% for OCTD. PJAN held $1.4 billion on July 31, 2026; OCTD held $5.4 million on July 31, 2025.
What is OCTD's expense ratio?
OCTD charges 0.79% a year, all of it a management fee, according to its prospectus filed February 28, 2025. That ties for lowest in a group of eight similar defined-outcome funds. The other seven average 0.86%, and the FT Vest funds among them charge 0.85% to 0.95%. The SEC's standard example assumes $10,000 invested with a 5% yearly return. In that example, costs total about $81 after one year, $252 after three, $439 after five and $978 after ten.