At a glance
PSTP charges 0.89% a year, above the 0.86% average of the 7 funds most like it (the 6th cheapest of 8). It has $132.9M in assets, the 8th largest of that group. Over the past year it returned +7.2% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned +13.0% a year.
The short version
Innovator Power Buffer Step-Up Strategy ETF (PSTP) is an actively managed fund. It holds one-year options on the SPDR S&P 500 ETF Trust and aims to absorb the first 15% of losses over each options term, while capping gains. Most buffer ETFs lock in a fixed outcome period. PSTP's sub-adviser, Milliman, can instead reset the options each month to lock in gains or rebuild the buffer. It costs 0.89% a year and makes no distributions.
Price history
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PSTP +7.2% 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 | |
|---|---|---|---|---|---|---|
| PSTP official prospectus, to Dec 31, 2024 | — | +10.17% | — | — | — | +8.70% |
| PSTP price data to Oct 27, 2026 | +6.6% | +7.2% | +13.0% | — | — | +8.4% |
- Over the year to Oct 27, 2026, PSTP returned +7.2%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+10.4%); its best was 2023 (+13.6%).
- The deepest fall in its price history was 12.5% (Mar 29, 2022 to Oct 12, 2022), recovered by Jun 13, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +6.6% | — |
| 2025 | +10.4% | +10.17% |
| 2024 | +13.6% | +13.61% |
| 2023 | +13.6% | +13.73% |
| 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 |
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 added a net $1.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.17%, -0.19%, +0.46%.
How it works
PSTP doesn't buy stocks directly. As of July 31, 2026, its portfolio was four FLEX options on the SPDR S&P 500 ETF Trust, an ETF that tracks the S&P 500, plus 0.06% in cash. FLEX options are exchange-traded options whose strike prices and expiration dates can be customized. The prospectus also lets the fund hold the S&P 500 ETF or its stocks directly. Innovator Capital Management is the adviser. Milliman Financial Risk Management, the sub-adviser, runs the options.
Each options package is designed for a one-year term. If the S&P 500 ETF falls less than 15% over that term, the package aims for a 0% return. If it falls more, the fund's loss is meant to be 15 percentage points smaller than the ETF's. In exchange, gains are capped at an upside limit. All of these figures are before fees.
The "step-up" is the unusual part. Each month, Milliman reviews how the package has moved since it was opened. It may close the package early and start a new one-year package, either to lock in gains or to rebuild a buffer that has been used up. Because of this, the fund doesn't promise a set buffer or cap over any period. Its results will differ from simply holding the options to expiration.
What it really costs
- PSTP charges 0.89% a year, versus an average of 0.86% for the similar funds below (6th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $91 in the first year and $1,096 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| PSTP | $91 | $284 | $493 | $1,096 |
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 uses options to soften S&P 500 losses through a 15% buffer, and it moved about half as much as the market over one year, at the cost of capped gains and no income.
PSTP could give a stock allocation a gentler ride than the S&P 500. As of October 27, 2026, its one-year volatility was 6.6% and its beta was 0.51. Beta measures how much a fund moves with the market, so 0.51 means about half as much. The fund launched March 8, 2022, so it missed 2008, 2020 and the start of the 2022 bear market. Its deepest drop, 12.5%, ran from March 29 to October 12, 2022. It recovered by June 13, 2023, about eight months later. Its weakest full calendar year was a 10.17% gain in 2025, so it hasn't faced a long slump. The buffer works over each options term, not day to day. That matters for anyone cashing in shares in a bad year. It pays no distributions and costs 0.89% a year. 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 an options buffer that aims to absorb the first 15% of losses over each one-year term.
- People wary of buffer ETFs' timing risk who prefer a manager resetting options monthly over a fixed outcome period.
- Retirees willing to give up some upside for smaller swings: one-year beta was 0.51 and volatility 6.6% as of October 27, 2026.
Look elsewhere if
- Anyone needing income: the fund has recorded no distributions, so cash must come from redeeming shares.
- Cost-focused investors: 0.89% a year is above the 0.86% peer average and Innovator's own PJAN and PDEC at 0.79%.
- Those wanting a known buffer and cap: monthly resets mean no set outcome, and it trailed all seven peers over one and three years.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| PSTP this fund | 0.89% | $132.9M | +7.2% | +13.0% |
| 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 PSTP pay dividends?
No. The fund has recorded no distributions. It mainly holds FLEX options on the SPDR S&P 500 ETF Trust rather than the stocks themselves, so it does not pass along the S&P 500's dividends. Its return comes from changes in its share price. Investors who want regular cash from this holding would need to redeem shares.
What's the difference between PSTP and PJAN?
Both come from Innovator and use options to buffer U.S. stock losses, but they work differently. PJAN (Innovator U.S. Equity Power Buffer ETF – January) is a defined-outcome fund built around a set outcome period. PSTP's sub-adviser, Milliman, may reset its one-year options each month, so PSTP has no set buffer or cap over any period. PJAN costs 0.79% a year, compared with 0.89% for PSTP. As of October 27, 2026, PJAN returned 10.5% over one year and 14.8% a year over three years. PSTP returned 7.2% and 13%.
Is PSTP good for retirement?
It may suit retirees who want stock exposure with smaller swings, but it has trade-offs. Its one-year beta was 0.51 as of October 27, 2026. Its deepest drop since its March 2022 launch was 12.5%, and it recovered in about eight months. Gains are capped, it pays no distributions, and it costs 0.89% a year. It hasn't been tested in a crash like 2008 or 2020. It's worth comparing with other buffer funds and weighing against the whole portfolio.
Can you lose money in PSTP?
Yes. The prospectus warns that a shareholder may lose their entire investment. The 15% buffer applies only over each one-year options term. If the S&P 500 ETF falls more than 15% over a term, the fund bears the losses beyond that. Because Milliman may reset the options monthly, the protection left at any moment depends on where the market sits relative to the options. The buffer is also stated before the fund's 0.89% annual fee.
How has PSTP performed?
Steadily, but behind similar funds. Its prospectus shows returns of 13.73% in 2023, 13.61% in 2024 and 10.17% in 2025. As of October 27, 2026, it was up 6.6% for the year to date, 7.2% over one year and 13% a year over three years. Over both one and three years, that placed it last among eight buffer funds compared. FT Vest's BUFR returned 11.6% and 16.8% over the same periods. PSTP's worst quarter was a 2.26% loss in the quarter ending September 30, 2023.