BUFC vs PDEC

BUFCBAB Conservative Buffer ETF

PDECCInnovator U.S. Equity Power Buffer ETF

In short

BUFC Most buffer funds lock you into a 12-month outcome period. BUFC resets every three months, targeting 15% downside protection against the S&P 500 with roughly 3% of the upside per period. Deep cushion, short leash.

PDEC The December door into Innovator's buffer lineup: it tracks SPY up to a preset cap while absorbing the first 15% of losses. Running since 2019, it resets each December 1 and can be held indefinitely.

Stated mandate

BUFC The Fund is an actively managed equity ETF seeking conservative capital appreciation with potential partial downside protection. It uses options to establish an upside cap and downside protection over rolling three-month periods, targeting 15% downside protection and about 3% upside participation to the S&P 500.

PDEC The Fund seeks to track SPY’s return up to a predetermined cap and buffer investors against an initial portion of losses over the outcome period, before fees and expenses.

Why people hold it

• BUFC Uses options to target 15% downside protection against the S&P 500 over rolling three-month periods, so the cushion resets four times a year instead of once.alliancebernstein.com
• At 0.69%, it costs less than Innovator's 0.79% Power Buffer funds (PJUL, PJAN, POCT) and less than the typical fund in its buffer cohort.
• Actively managed rather than pinned to a calendar index series, running since 2023, and among the stronger implementations in its buffer peer group.

• PDEC The cushion is thick: the first 15% of SPY's losses over the outcome period are absorbed before fees. Past that, losses land one for one.sec.gov
• Set-and-reset mechanics. The cap and 15% buffer refresh at the start of each December outcome period, and shares can be held straight through the rollover.innovatoretfs.com
• Innovator launched the first defined-outcome buffer ETFs, and this December vintage dates to 2019. It sits among the stronger builds in its buffer peer group.innovatoretfs.com

Worth knowing

• BUFC The price of that deep cushion: upside participation is targeted near 3% per three-month period, so big rallies mostly pass you by.
• Protection is partial and period-based. Losses past the targeted 15% pass through, and buying mid-period shifts your effective buffer and cap.alliancebernstein.com
• Thinly traded for its size, so spreads and limit orders deserve attention.

• PDEC The cap is the rent you pay for the cushion. Upside above it is left on the table, and each December's cap is set by option pricing at the time.innovatoretfs.com
• Buy mid-period and your cap and remaining buffer differ from the headline terms. Shares also trade lightly, so the spread deserves a look.innovatoretfs.com
• At 0.79% it sits right at the buffer-category median, and laddered rivals like PSFF (0.10%) and BUFP (0.50%) run cheaper.

Full BUFC profile⁠

Full PDEC profile⁠