At a glance
UFEB charges 0.79% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $238.2M in assets, the 8th largest of that group. Over the past year it returned +10.2% with distributions reinvested (S&P 500: +11.5%), 7th of those 8 funds; over three years it returned +14.2% a year. At its worst it fell 8.5% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 15 months after the low.
The short version
Innovator U.S. Equity Ultra Buffer ETF - February (UFEB) uses FLEX options, which are exchange-traded options with customized terms, on the SPDR S&P 500 ETF Trust. The aim is to pass along S&P 500 gains up to a cap while cushioning losses between 5% and 35% over each one-year outcome period. From February 1, 2026 to January 31, 2027, the cap is 11.39% before fees. Its 0.79% expense ratio is the lowest of eight comparable buffer funds.
Price history
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UFEB +10.2% 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 | |
|---|---|---|---|---|---|---|
| UFEB official prospectus, to Dec 31, 2024 | — | +10.44% | — | +7.09% | — | — |
| UFEB price data to Oct 27, 2026 | +8.4% | +10.2% | +14.2% | +7.5% | — | +8.0% |
- Over the year to Oct 27, 2026, UFEB returned +10.2%, 7th of 8 among similar funds.
- Its 5-year annualized return was +7.5%.
- Its worst full calendar year was 2022 (-5.8%); its best was 2024 (+12.9%).
- The deepest fall in its price history was 9% (Feb 2, 2022 to Mar 10, 2023), recovered by Sep 14, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +8.4% | — |
| 2025 | +10.6% | +10.44% |
| 2024 | +12.9% | +13.04% |
| 2023 | +11.9% | +11.97% |
| 2022 | -5.8% | -5.97% |
| 2021 | +7.3% | +7.33% |
| 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 7.5% over that stretch · deepest drop along the way 8.5%, back to its old high 14.9 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 $19.4M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.86%, -0.05%, +0.60%.
How it works
UFEB does not own stocks directly. It invests at least 80% of its net assets in positions tied to the State Street SPDR S&P 500 ETF Trust, an ETF that tracks the S&P 500 Index. Most of that exposure comes from FLEX options on that ETF. As of July 31, 2026, the fund held four option positions and 0.29% cash, with $238.2 million in net assets. Innovator Capital Management is the adviser. Milliman Financial Risk Management is the sub-adviser.
The options set two limits, known as the cap and the buffer, for each outcome period of about one year. From February 1, 2026 to January 31, 2027, gains are capped at 11.39% before fees, or 10.60% after the 0.79% management fee. Holders take the first 5% of the underlying ETF's losses. The fund then seeks to absorb the next 30%, and holders take any losses beyond 35%. In the prospectus examples, before fees, a 20% drop in the underlying ETF means a 5% fund loss, and a 50% drop means a 20% loss. When a period ends, the fund rolls into new options, which sets a new cap.
These outcomes apply only to shares held for the whole period, and they are measured on net asset value (NAV), not market price. Someone who buys partway through gets a different effective cap and buffer. Innovator posts updated figures daily at innovatoretfs.com/ufeb. Results are not guaranteed, and the fund is classified as non-diversified.
What it really costs
- UFEB 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 |
|---|---|---|---|---|
| UFEB | $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 trades away gains above a set cap so that stock losses between 5% and 35% are cushioned over each one-year outcome period.
UFEB could stand in for part of a stock allocation, giving S&P 500 exposure with smaller swings. Its one-year volatility was 5.1% as of October 27, 2026. Its price history starts in June 2020, so it misses the 2008 crisis and the 2020 crash. In the 2022 bear market it fell 8.5% from February 2 to June 16, 2022, and it took until September 14, 2023 to recover. Its deepest drop was 9%. Its worst calendar year, per the prospectus, was 2022 at -5.97%. Shallower drops can mean selling fewer shares in a bad year. However, the buffer works fully only for shares held over a whole outcome period, and the cap limits gains in strong years. No distributions are recorded, so it provides no income. In the SEC's standard example, costs are $81 in the first year on $10,000. 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 who want S&P 500 exposure with losses between 5% and 35% cushioned, and who accept an 11.39% pre-fee cap through January 2027.
- People who can buy near February 1 and hold for the full one-year outcome period, when the stated buffer and cap apply.
- Cost-conscious buyers of buffer funds: its 0.79% expense ratio is below the 0.86% peer average.
Look elsewhere if
- Investors who need regular income: the fund has no recorded distributions.
- Those who want full stock market upside: one- and three-year returns ranked 7th of 8 buffer peers as of October 27, 2026.
- People who want protection against severe crashes: holders take every loss beyond 35% and the first 5% too.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| UFEB this fund | 0.79% | $238.2M | +10.2% | +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 UFEB pay dividends?
No. No distributions are recorded for UFEB. The fund holds FLEX options on the SPDR S&P 500 ETF Trust instead of owning stocks, so any return shows up in its share price. That makes it a poor fit for investors who want regular cash payouts. Anyone drawing income from it would have to sell shares, and the timing of those sales matters because the buffer only fully applies to shares held for a whole outcome period.
What happens if you buy UFEB in the middle of the outcome period?
Your results can differ a lot from the stated cap and buffer. The 11.39% pre-fee cap and the 5%–35% buffer apply only to shares held from February 1, 2026 to January 31, 2027. If the S&P 500 ETF has already risen, a mid-period buyer has less room to the cap. If it has fallen, the buffer may already be partly used up or still some way off. Innovator posts the remaining cap and buffer daily at innovatoretfs.com/ufeb.
UFEB vs FFEB: what's the difference?
Both are February buffer ETFs on U.S. stocks, but they come from different issuers. UFEB is Innovator's and FFEB is FT Vest's. UFEB costs less, at 0.79% compared with 0.85% for FFEB. As of October 27, 2026, FFEB returned 12.9% over one year and 18.6% a year over three years, compared with 10.2% and 14.2% for UFEB. UFEB's buffer starts only after a 5% loss and reaches 35%. Compare FFEB's own prospectus for its buffer and cap terms.
Can you lose money in UFEB?
Yes. Holders take the first 5% of the underlying S&P 500 ETF's losses over an outcome period, plus every loss beyond 35%. The prospectus example shows that before fees, a 50% drop in the underlying ETF means about a 20% fund loss, and a 100% drop means a 70% loss. The worst calendar year was 2022, at -5.97%. The deepest drop was 9%, from February 2, 2022 to March 10, 2023. The fund recovered by September 14, 2023.
Is UFEB good for retirement?
It depends on what the portfolio needs. UFEB may suit retirees who want some stock exposure with smaller swings. Its one-year volatility was 5.1% and its beta was 0.39 as of October 27, 2026, where beta measures how much a fund moves with the market. The trade-off is that gains are capped and the fund pays no income. Costs are 0.79% a year. In the SEC's standard example, that comes to $81 in the first year and $978 over ten years on $10,000.