At a glance
OCTQ charges 0.79% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $8.4M 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 +3.5% a year.
The short version
Innovator Premium Income 40 Barrier ETF - October (OCTQ) is an actively managed fund that holds U.S. Treasury bills and S&P 500 options. It aims to pay a set income rate over each October-to-September period: 5.20% a year before fees for the period ending September 30, 2025. It gives up stock-market gains. In return, holders aren't expected to lose money unless the S&P 500 falls more than 40% over a period, and past that point losses grow quickly.
Price history
The interactive chart needs JavaScript.
OCTQ 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 | |
|---|---|---|---|---|---|---|
| OCTQ price data to Oct 27, 2026 | 0.0% | 0.0% | +3.5% | — | — | +3.5% |
- Over the year to Oct 27, 2026, OCTQ returned 0.0%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+3.5%); its best was 2024 (+4.6%).
- The deepest fall in its price history was 3.2% (Mar 24, 2025 to Apr 8, 2025), recovered by Apr 28, 2025.
Show as a table
| Year | Price data |
|---|---|
| 2025 | +3.5% |
| 2024 | +4.6% |
| 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 | $0.7800 | -39.1% |
| 2024 | $1.2800 |
What's inside
As of Jul 31, 2025, the fund held 1 securities; the ten largest made up 100.13% of assets.
| Holding | Weight | |
|---|---|---|
| TREASURY BILL Bonds and notes | 100.13% |
By country
United States 100.13%By issuer
US Treasury 100.13%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 withdrew a net $7.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.77%, +0.52%, +0.42%.
How it works
OCTQ, an actively managed Innovator ETF, holds U.S. Treasury bills (short-term government debt) and FLEX options. FLEX options are exchange-traded options with customizable terms. They are tied to the S&P 500 Price Return Index, which leaves out dividends. Each Outcome Period runs from October 1 to September 30. Income comes from Treasury bill interest and from premiums (the price an option buyer pays) that the fund collects on options expiring at the end of the period. It is paid on the first business day of January, April, July and October.
The income rate, called the Defined Distribution Rate, is reset each period. For October 1, 2024 to September 30, 2025 it was 5.20% before fees. The barrier is checked only on the last day of the period. If the S&P 500 has fallen 40% or less since the period began, holders aren't expected to lose money. If it has fallen between 40% and 41%, the fund's loss climbs steeply from 0% to 41%. Beyond that, losses match the index one for one, and the whole investment can be lost. The fund doesn't share in index gains.
As of July 31, 2025, it held one Treasury bill worth about 100% of net assets, plus S&P 500 options expiring September 30, 2025. The stated outcomes apply only to shares held for a full period. The price can move in between.
What it really costs
- OCTQ 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 |
|---|---|---|---|---|
| OCTQ | $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
It is built to pay quarterly income from Treasury bill interest and S&P 500 option premiums, not to grow with the stock market.
OCTQ launched on October 2, 2023, after the 2008, 2020 and 2022 bear markets, so it has no record in a major downturn. Its weaker calendar year, 2025, was still a 3.54% gain. Its deepest drop was 3.2%, from March 24 to April 8, 2025, and it had recovered by April 28. The real risk is a rare, severe market drop. If the S&P 500 ends a period down more than 41%, the fund loses as much as the index. That would hit hard for anyone selling shares to cover spending.
The fund is designed to pay income quarterly, but its trailing 12-month yield was 0% as of October 27, 2026, with no distributions in that year. The 0.79% expense ratio works out to $81 in the first year on $10,000 in the SEC's standard example. Past results don't predict future ones, and any plan needs to weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income seekers wanting quarterly payouts from Treasury bill interest and S&P 500 option premiums, at 5.20% before fees for October 2024–September 2025.
- Those willing to give up S&P 500 gains for no expected losses over a full period unless the index falls more than 40%.
- Investors who can enter near October 1 and hold to September 30, since the barrier and income rate are set for that full period.
Look elsewhere if
- Anyone wanting stock-market growth: its 3.5% yearly three-year return to October 27, 2026 trailed all seven buffer funds compared (13.9% to 18.6%).
- People who can't absorb a sudden large loss: if the S&P 500 falls more than 41% in a period, losses match the index one for one.
- Those wanting a large fund with steady payouts: assets were $8.4 million on July 31, 2025, and nothing was paid 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 |
|---|---|---|---|---|
| OCTQ this fund | 0.79% | $8.4M | 0.0% | +3.5% |
| 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 OCTQ pay monthly dividends?
No. OCTQ is designed to pay quarterly, not monthly. 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. The money comes from Treasury bill interest and option premiums, at a rate set for each October-to-September period. That rate was 5.20% before fees for the period ending September 30, 2025. However, the fund paid nothing in the 12 months to October 27, 2026, and its trailing yield was 0%.
Can you lose money in OCTQ?
Yes. Over a full Outcome Period, the fund isn't expected to lose money if the S&P 500 falls 40% or less, but it has no floor. If the index ends a period down between 40% and 41%, the fund's loss jumps from 0% to 41%. Past a 41% drop, losses match the index one for one, and the prospectus warns that an investor can lose the entire investment. Shares sold partway through a period can also show losses: the price fell 3.2% between March 24 and April 8, 2025.
What's the difference between OCTQ and PJAN?
The main difference is what each fund gives up. Both are Innovator defined-outcome ETFs that charge 0.79%. PJAN, the Innovator U.S. Equity Power Buffer ETF - January, aims to deliver S&P 500 gains up to a cap while absorbing a set range of losses over its outcome period. OCTQ gives up index gains in exchange for income. It is designed to take losses only if the index falls more than 40%, and then they grow quickly. Over the three years to October 27, 2026, PJAN returned 14.8% a year, compared with 3.5% for OCTQ.
Is OCTQ good for retirement income?
It can play an income role, but with real trade-offs. OCTQ aims for a set income rate, which was 5.20% before fees for October 2024 to September 2025. Its deepest drop through October 27, 2026 was 3.2%. But it gives up stock-market growth and takes steep losses if the S&P 500 falls more than 40% in a period. It also returned 0% and paid nothing in the 12 months to October 27, 2026, so it's worth checking with Innovator that new periods are still starting.
What is OCTQ's expense ratio?
OCTQ's expense ratio is 0.79%, all of it management fee, according to its prospectus filed February 28, 2025. The SEC's standard example assumes $10,000 invested, a 5% yearly return and shares sold at the end. On that basis, costs total $81 after one year, $252 after three, $439 after five and $978 after ten. That ties for the lowest among eight defined-outcome funds compared and is below the 0.86% average of the other seven. FT Vest's BUFR and BUFD charge 0.95%.