At a glance
OCTH charges 0.79% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $18.1M in assets, the 8th largest of that group; it paid 6.51% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +6.3% with distributions reinvested, the weakest of those 8 funds; over three years it returned +7.5% a year.
The short version
Innovator Premium Income 20 Barrier ETF - October (OCTH) holds U.S. Treasury bills and FLEX options on the S&P 500, aiming to pay set quarterly income each October-to-September period. For the period ending September 30, 2026, it targeted a 7.29% payout rate before fees, with no share of stock gains. It aims to avoid losses if the S&P 500 falls 20% or less by period end; beyond 21%, holders take the index's full loss.
Price history
The interactive chart needs JavaScript.
OCTH +6.3% 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 | |
|---|---|---|---|---|---|---|
| OCTH official prospectus, to Dec 31, 2024 | — | +6.73% | — | — | — | +7.39% |
| OCTH price data to Oct 27, 2026 | +5.1% | +6.3% | +7.5% | — | — | +7.2% |
- Over the year to Oct 27, 2026, OCTH returned +6.3%, 8th of 8 among similar funds.
- Its worst full calendar year was 2024 (+6.3%); its best was 2025 (+6.6%).
- The deepest fall in its price history was 7.7% (Mar 25, 2025 to Apr 8, 2025), recovered by May 12, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +5.1% | — |
| 2025 | +6.6% | +6.73% |
| 2024 | +6.3% | +6.07% |
| 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 |
|---|---|---|
| 2026 (to date) | $1.1700 | |
| 2025 | $1.5300 | -14.5% |
| 2024 | $1.7900 |
What's inside
As of Jul 31, 2026, the fund held 1 securities; the ten largest made up 100.26% of assets.
| Holding | Weight | |
|---|---|---|
| TREASURY BILL Bonds and notes | 100.26% |
By country
United States 100.26%By issuer
US Treasury 100.26%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, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $1.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.81%, +0.38%, +0.46%.
How it works
OCTH is actively managed and does not track an index. It holds two things: U.S. Treasury bills and FLEX options, which are exchange-listed contracts with customized strike prices and expiration dates. The options reference the S&P 500 Price Return Index, which excludes dividends. As of July 31, 2026, a Treasury bill made up about 100% of assets, alongside three FLEX option positions expiring September 30, 2026.
Each outcome period runs October 1 to September 30. At the start, the fund sets a Defined Distribution Rate based on its per-share value: 7.29% before fees for the period ending September 30, 2026. Treasury bill interest and option premiums, the cash its options bring in, fund the payouts. It pays quarterly, on the first business day of January, April, July and October, and the rate resets each period.
The barrier, a loss threshold, counts only at period end. If the S&P 500 is down 20% or less, the fund is designed to deliver the distribution rate with no loss. If it ends down between 20% and 21%, losses ramp from 0% to 21%; beyond 21%, the fund takes the index's full loss. It gets no share of index gains. Before expiration, option values swing, so the share price can dip mid-period, and investors entering after October 1 may see different results.
What it really costs
- OCTH 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 |
|---|---|---|---|---|
| OCTH | $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
Its purpose is a preset quarterly payout from Treasury bill interest and S&P 500 option premiums, and it gives up all stock-market gains to provide it.
OCTH could add steady income: its 12-month yield was 6.51% as of October 27, 2026, paid quarterly. Launched in October 2023, it has no record from the 2008, 2020 or 2022 downturns. Its prospectus shows returns of 6.07% in 2024, its weakest year, and 6.73% in 2025. It recovered from its deepest drop, 7.7% between March 25 and April 8, 2025, by May 12, about a month later.
The catch is the cliff: if the S&P 500 ends a period down more than 21%, holders take the index's full loss, a scenario OCTH has not faced and a painful one for anyone needing cash. The payout rate resets each October and can fall. In the SEC's $10,000 example, the 0.79% expense ratio costs $81 in year one and $978 over 10 years. 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 quarterly payouts from Treasury bill interest and option premiums (6.51% trailing yield as of October 27, 2026), accepting no stock-market gains.
- Investors who can enter near October 1 and hold through September 30, since the 20% barrier counts only at the period's end.
- Cost-conscious investors in defined-outcome funds: its 0.79% expense ratio ties for lowest among similar funds, below the 0.86% peer average.
Look elsewhere if
- Growth seekers: OCTH takes no share of S&P 500 gains and returned 6.3% in the year to October 27, 2026, versus 9.5%–12.9% for buffer peers.
- Anyone uneasy with a cliff: if the S&P 500 ends a period down more than 21%, the fund takes the full loss, with no floor.
- Those who prefer larger funds: net assets were about $18.1 million as of July 31, 2026, the smallest in a group of eight similar funds.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| OCTH this fund | 0.79% | $18.1M | +6.3% | +7.5% |
| 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
Does OCTH pay monthly dividends?
No. OCTH pays quarterly. Shareholders of record on the last business day of March, June, September and December receive a distribution on the first business day of the following month. The payments come from Treasury bill interest and option premiums rather than stock dividends. Over the 12 months to October 27, 2026, it paid $1.56 per share, a trailing yield of 6.51%. The target rate resets each October 1, so payouts can rise or fall from one period to the next.
How does OCTH's 20% barrier work?
The barrier aims to shield holders from S&P 500 losses of up to 20%, measured only from the start to the end of each October-to-September outcome period. If the index ends the period down 20% or less, the fund is designed to deliver its distribution rate, before fees, with no loss. If it ends down between 20% and 21%, losses accelerate from 0% to 21%. Past 21%, the fund takes the index's full loss, one for one. The barrier sets no limit on how much holders can lose.
Is OCTH good for retirement income?
It may suit retirees who put income ahead of growth, with caveats. OCTH had a 6.51% trailing yield as of October 27, 2026, and returned 6.07% in 2024 and 6.73% in 2025, per its prospectus. Its deepest drop was 7.7%, between March 25 and April 8, 2025. But it launched in October 2023, after the 2008, 2020 and 2022 downturns, and an S&P 500 fall beyond 21% in an outcome period would pass the full loss to holders. It also gives up all stock gains.
What's the difference between OCTH and PDEC?
OCTH aims for set income with no share of stock gains, while PDEC is a buffer fund, a type that generally tracks S&P 500 gains up to a cap and absorbs a set range of losses. Both come from Innovator and charge 0.79%. OCTH targeted a 7.29% distribution rate before fees for the period ending September 30, 2026, and aims to avoid losses only if the S&P 500 falls 20% or less by period end. Over the year to October 27, 2026, PDEC returned 11.6% versus OCTH's 6.3%.
Can you lose money in OCTH?
Yes. If the S&P 500 ends an outcome period down more than 21%, OCTH takes the index's full loss, and the prospectus warns an investor could lose their entire investment before counting distributions. Even within the barrier, the share price can dip before the options expire: OCTH fell 7.7% between March 25 and April 8, 2025, before recovering by May 12. Investors who enter after October 1 may also get results that differ from the stated outcomes.