ISEP vs SPY
Innovator International Developed Power Buffer ETF - September vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | ISEP | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.85% | 0.09% | |
| AUM | $65M | $789.1B | |
| Dividend Yield | 0.00% | 1.01% | |
| Holdings | 6 | 505 | |
| YTD Return | +8.28% | +13.68% | |
| 1Y Return | +13.02% | +21.53% | |
| 3Y Return (annualized) | +12.61% | +21.44% | |
| 5Y Return (annualized) | - | +13.18% | |
| Volatility (annualized) | 7.5% | 15.3% | |
| Max Drawdown | -7.4% | -56.5% | |
| Fund Family | Innovator ETFs Trust | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Sep 1, 2023 | Jan 22, 1993 |
ISEP vs SPY Performance
Innovator International Developed Power Buffer ETF - September (ISEP) is a ETF from Innovator ETFs Trust and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year ISEP returned +13.02% while SPY returned +21.53%. Year to date, ISEP is up 8.28% versus a gain of 13.68% for SPY.
Over three years, ISEP compounded at +12.61% per year against +21.44% for SPY. Across the full 3-year window we track, ISEP has the edge at +12.61% annualized vs +8.85%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 7.5% for ISEP. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -7.4% for ISEP and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ISEP charges 0.85% per year while SPY charges 0.09%. On a $10,000 position that is $85 vs $9 annually, a gap of $76 per year that compounds over a long holding period. On income, ISEP currently yields 0.00% against 1.01% for SPY.
Frequently Asked Questions
Which is cheaper, ISEP or SPY?
ISEP has an expense ratio of 0.85% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $76 per year of difference.
Which performed better, ISEP or SPY?
Over the past year ISEP returned +13.02% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), ISEP annualized +12.61% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, ISEP or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 7.5% for ISEP. Worst drawdown: ISEP -7.4% vs SPY -56.5%.
Should I hold both ISEP and SPY?
ISEP and SPY have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, ISEP or SPY?
ISEP yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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