At a glance
UDEC charges 0.79% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $246.6M in assets, the 8th largest of that group. Over the past year it returned +10.9% with distributions reinvested (S&P 500: +11.5%), 6th of those 8 funds; over three years it returned +15.2% a year. At its worst it fell 9.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 13 months after the low.
The short version
Innovator U.S. Equity Ultra Buffer ETF - December (UDEC) uses FLEX options on the SPDR S&P 500 ETF Trust to track S&P 500 gains up to a cap over each year-long outcome period starting December 1. In exchange, it absorbs losses between 5% and 35%. Its 0.79% expense ratio is below the 0.86% average for similar buffer funds. It pays no distributions, and holders take the first 5% of any loss.
Price history
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UDEC +10.9% 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 | |
|---|---|---|---|---|---|---|
| UDEC official prospectus, to Dec 31, 2024 | — | +13.06% | — | +6.90% | — | — |
| UDEC price data to Oct 27, 2026 | +9.0% | +10.9% | +15.2% | +7.7% | — | +8.0% |
- Over the year to Oct 27, 2026, UDEC returned +10.9%, 6th of 8 among similar funds.
- Its 5-year annualized return was +7.7%.
- Its worst full calendar year was 2022 (-9.4%); its best was 2023 (+16.8%).
- The deepest fall in its price history was 10.3% (Jan 4, 2022 to Dec 28, 2022), recovered by Jul 13, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +9.0% | — |
| 2025 | +13.0% | +13.06% |
| 2024 | +9.5% | +9.43% |
| 2023 | +16.8% | +16.79% |
| 2022 | -9.4% | -9.33% |
| 2021 | +6.4% | +6.39% |
| 2020 | — | +6.68% |
| 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 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 8% over that stretch · deepest drop along the way 9%, back to its old high 12.8 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 $72.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.10%, 0.00%, +0.63%.
How it works
Innovator Capital Management runs the fund, and Milliman Financial Risk Management is the sub-adviser. The fund does not own stocks directly. It holds FLEX Options, which are exchange-traded options with custom strike prices and expiration dates. They reference the SPDR S&P 500 ETF Trust (the "Underlying ETF"), which tracks the S&P 500 Index. As of July 31, 2026, four option positions made up 99.78% of assets, with 0.28% in cash.
Together, the options set the "Outcomes" for each outcome period. For December 1, 2025 to November 30, 2026, the cap on gains is 12.03% before fees, or 11.24% after the 0.79% management fee. The "ultra" buffer covers Underlying ETF losses between 5% and 35%. Holders bear the first 5% of losses and any losses beyond 35%. In the prospectus examples, a 10% fall in the Underlying ETF means a 5% fund loss, and a 50% fall means a 20% loss. These outcomes are based on the Underlying ETF's share price.
At the end of each period, the options expire and the fund reinvests the cash in new options expiring about a year later. A new cap is then set. The stated outcomes apply only to investors who hold shares for the whole period, measured at net asset value (NAV, the per-share value of the fund's holdings). Investors who buy or sell partway through can get very different results. Innovator posts the remaining cap and buffer daily at innovatoretfs.com/udec.
What it really costs
- UDEC 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 |
|---|---|---|---|---|
| UDEC | $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 offers S&P 500 exposure with a buffer against losses between 5% and 35%, in exchange for a cap on gains.
UDEC could act as a defensive stock holding that narrows the range of yearly results. Its record is short and starts after 2008. In the quarter ended March 31, 2020, during the COVID crash, it lost 7.78%. Its worst calendar year was 2022, at -9.33%. Its deepest drop was 10.3%, from January 4 to December 28, 2022. It regained its old peak by July 13, 2023, about 6.5 months later. The fund recorded no distributions, so drawing income means selling shares. A sale before the outcome period ends gets market value, not the buffered result. It costs 0.79% a year, or $81 in the first year on $10,000 under the SEC's standard example. Past results don't predict future ones, 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 losses between 5% and 35% absorbed, who accept a 12.03% pre-fee cap for the December 2025 period.
- Investors who can buy near December 1 and hold for the full year-long outcome period, so the stated buffer and cap apply.
- Cost-conscious buffer buyers: the 0.79% fee is below the 0.86% peer average and FT Vest's 0.85%–0.95% buffer funds.
Look elsewhere if
- Investors who need regular income: the fund recorded no distributions, so cash comes only from selling shares.
- Investors wanting full market upside: gains stop at the cap, and its 15.2% three-year annual return trailed FDEC's 18.5% as of October 27, 2026.
- Investors wary of small funds: $246.6 million in net assets as of July 31, 2026, the smallest of its peers, after $72.8 million in three-month outflows.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| UDEC this fund | 0.79% | $246.6M | +10.9% | +15.2% |
| 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 UDEC pay dividends?
No. The fund has recorded no distributions. It holds FLEX Options on the SPDR S&P 500 ETF Trust rather than the stocks themselves, and its outcomes are based on that ETF's share price. Any return comes through changes in UDEC's share price. Investors who want regular cash payments from S&P 500 exposure would need to sell shares or look at funds that hold the stocks and pass along their dividends.
What is the UDEC cap and buffer for this outcome period?
For December 1, 2025 to November 30, 2026, UDEC's cap is 12.03% before fees, or 11.24% after its 0.79% management fee. The buffer covers losses in the SPDR S&P 500 ETF Trust between 5% and 35%. After fees, that range is 4.21% to 34.21%. Holders bear the first 5% of losses and anything beyond 35%. A new cap is set when the options reset each December.
What happens if I buy UDEC in the middle of the outcome period?
Your results can differ a lot from the stated cap and buffer. Those apply only to shares held from the first day of the outcome period to the last. A mid-period buyer may have less upside left before the cap. They may also have less buffer if the fund has already gained, or more downside before the buffer starts. Innovator posts the remaining cap and buffer daily at innovatoretfs.com/udec.
What's the difference between UDEC and PDEC?
Both are Innovator funds that use options on the SPDR S&P 500 ETF Trust, reset each December, and charge 0.79%. UDEC's "ultra" buffer covers losses between 5% and 35%. PDEC is a "Power Buffer" fund, so its buffer and cap are set differently. As of October 27, 2026, PDEC returned 11.6% over one year versus UDEC's 10.9%. Over three years, PDEC returned 14.9% a year versus 15.2%. PDEC is much larger, at $984.1 million versus $246.6 million as of July 31, 2026.
How much did UDEC lose in 2022?
UDEC fell 9.33% in calendar 2022, its worst year on record. Its deepest drop was 10.3%, from January 4 to December 28, 2022. It regained that peak by July 13, 2023, about 6.5 months after the low. Investors still lost money, because holders bear the first 5% of losses in each outcome period. It rebounded 16.79% in 2023. Past results don't predict how the buffer will hold up in a future downturn.