At a glance
PSEP charges 0.79% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $843.3M in assets, the 8th largest of that group. Over the past year it returned +8.8% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned +14.2% a year. At its worst it fell 17.9% in the 2020 crash (S&P 500: 33.7%) and 9.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 8 months after the lows.
The short version
Innovator U.S. Equity Power Buffer ETF - September (PSEP) holds FLEX options, which are exchange-traded options with custom terms, on the SPDR S&P 500 ETF Trust. The goal is S&P 500 returns up to a cap, with a buffer against the first 15% of losses over each one-year period that starts in September. Its 0.79% expense ratio is the lowest among similar buffer funds. The trade-offs: it pays no distributions and gives up any gains above the cap.
Price history
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PSEP +8.8% 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 | |
|---|---|---|---|---|---|---|
| PSEP official prospectus, to Dec 31, 2024 | — | +11.72% | — | +9.36% | — | +9.50% |
| PSEP price data to Oct 27, 2026 | +8.0% | +8.8% | +14.2% | +9.6% | — | +9.5% |
- Over the year to Oct 27, 2026, PSEP returned +8.8%, 8th of 8 among similar funds.
- Its 5-year annualized return was +9.6%.
- In the 2020 COVID crash it fell 17.9% and regained its old high 3.7 months after the low.
- Its worst full calendar year was 2022 (-3.7%); its best was 2023 (+18.8%).
- The deepest fall in its price history was 17.9% (Feb 19, 2020 to Mar 23, 2020), recovered by Jul 14, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +8.0% | — |
| 2025 | +11.8% | +11.72% |
| 2024 | +12.4% | +12.56% |
| 2023 | +18.8% | +18.91% |
| 2022 | -3.7% | -3.84% |
| 2021 | +8.8% | +8.77% |
| 2020 | +8.5% | +8.46% |
| 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 17.9% over that stretch · deepest drop along the way 17.9%, back to its old high 3.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 8.9% over that stretch · deepest drop along the way 9.8%, back to its old high 7.5 months after the low |
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 $37.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.71%, +0.32%, +0.84%.
How it works
PSEP does not pick stocks. The adviser is Innovator Capital Management, and the sub-adviser is Milliman Financial Risk Management. Together they hold a small set of FLEX options on the SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500 Index. As of July 31, 2026, four option positions made up 99.75% of net assets, and cash was 0.31%.
The four options work as a package. A call option with a very low strike price (6.45) rises and falls almost exactly like SPY. A put bought at 645.05, paired with a put sold at 548.29 (about 15% lower), creates the buffer. A call sold at 720.7 sets the cap and helps pay for the protection. For the September 1, 2025 to August 31, 2026 period, the cap was 11.72% before fees, or 10.93% after the 0.79% fee. The buffer was 15%, or 14.21% after the fee. Losses beyond 15% fall on holders one-for-one. If SPY fell 20%, the fund would lose about 5% before fees. Because the options follow SPY's price, the fund's results do not include SPY's dividends.
Each year, when the options expire at the end of August, the fund buys a new set and a new cap is set. These outcomes apply only to shares held for the full period. Someone who buys partway through gets a different cap and buffer. Innovator's website shows the updated figures every day.
What it really costs
- PSEP 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 |
|---|---|---|---|---|
| PSEP | $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 aims to soften S&P 500 losses in exchange for capped gains, and its one-year volatility was just 5.4% as of October 27, 2026.
PSEP could replace part of a stock allocation with something that swings less. Its history starts in September 2019, so it missed 2008. In the 2020 COVID crash it fell 17.9% between February 19 and March 23. The full buffer applies only at the end of each period, so it did not cushion that mid-period drop. The fund recovered by July 14, 2020, about 3.7 months later. In 2022 it dropped 9.8% and took 7.5 months to recover, yet the full calendar year was a loss of only 3.84%. Anyone selling in the middle of a downturn may get less protection than the stated buffer.
The fund has recorded no distributions, so any cash would have to come from selling shares. It costs 0.79% a year, about $81 in the first year on $10,000 under the SEC's standard example. 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
- Investors wanting S&P 500 exposure with a 15% loss buffer each September-to-August, who accept gains capped near 11.72% before fees.
- Holders able to buy near the September start of an outcome period and keep shares for the full year to get the stated results.
- Cost-aware buffer investors: its 0.79% expense ratio is below the 0.86% average of the similar buffer funds compared.
Look elsewhere if
- People seeking regular income: PSEP has recorded no distributions, so any cash would have to come from selling shares.
- Investors wanting more upside: PSEP's one-year return ranked 8th of 8 similar buffer funds as of October 27, 2026.
- Those wanting protection in deep crashes: losses beyond 15% fall one-for-one, and PSEP dropped 17.9% during the 2020 COVID crash.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| PSEP this fund | 0.79% | $843.3M | +8.8% | +14.2% |
| 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 PSEP pay dividends?
No. PSEP has recorded no distributions. The fund does not own the S&P 500 stocks directly. It holds FLEX options on the SPDR S&P 500 ETF Trust, and its results are tied to that ETF's price. So the dividends paid by S&P 500 companies do not pass through to holders. A retiree who wants cash from PSEP would have to sell shares. Investors who want regular payments may want to compare it with income-focused funds.
What happens if I buy PSEP in the middle of the outcome period?
Your results will likely differ from the stated cap and buffer. Those outcomes apply only to shares held from the period's first day to its last. If SPY has risen since the start, less room is left under the cap. If SPY has fallen, part of the buffer may already be used up. Innovator updates the remaining cap and buffer every day at www.innovatoretfs.com/psep. Each new one-year period begins in September.
What's the difference between PSEP and PJAN?
They are the same Innovator Power Buffer design with the same 0.79% expense ratio. The difference is the reset month: PSEP starts a new period in September, PJAN in January. Because each locks in its cap at a different time and market level, their results differ. As of October 27, 2026, PJAN returned 10.5% over one year and 14.8% a year over three years. PSEP returned 8.8% and 14.2%. Laddered funds such as BUFR spread out this timing, but cost 0.95%.
Can you lose money in PSEP?
Yes. Over a full outcome period, the buffer absorbs the first 15% of SPY's losses before fees, or 14.21% after the fee. Anything beyond that falls on holders one-for-one. A 50% SPY drop would mean about a 35% loss before fees. Drops in the middle of a period can be larger than the buffer suggests. PSEP fell 17.9% between February and March 2020. The prospectus also warns that the buffer is not guaranteed.
What is PSEP's expense ratio?
PSEP charges 0.79% a year, according to its prospectus filed February 27, 2026. That ties with PJAN and PDEC for the lowest cost among the eight buffer funds compared. The average for the group is 0.86%, and the FT Vest funds charge 0.85% to 0.95%. Under the SEC's standard example ($10,000 invested, 5% yearly return), costs total $81 after one year, $252 after three, $439 after five and $978 after ten. The fee also lowers the cap from 11.72% to 10.93%.