At a glance
BAUG charges 0.79% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $195.3M in assets, the 8th largest of that group. Over the past year it returned +12.0% with distributions reinvested (S&P 500: +11.5%), 4th of those 8 funds; over three years it returned +20.2% a year. At its worst it fell 24.2% in the 2020 crash (S&P 500: 33.7%) and 15.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 4 months and 9 months after the lows.
The short version
Innovator U.S. Equity Buffer ETF - August (BAUG) uses FLEX options on the SPDR S&P 500 ETF Trust to deliver S&P 500 returns up to a cap. It also seeks to buffer the first 9% of losses over each August-to-July outcome period. Its 0.79% expense ratio is below the 0.86% average of similar buffer funds. With about $195 million in net assets, it is the smallest fund in that group.
Price history
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BAUG +12.0% 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 | |
|---|---|---|---|---|---|---|
| BAUG official prospectus, to Dec 31, 2024 | — | +14.72% | — | +10.95% | — | +11.40% |
| BAUG price data to Oct 27, 2026 | +11.2% | +12.0% | +20.2% | +11.4% | — | +11.7% |
- Over the year to Oct 27, 2026, BAUG returned +12.0%, 4th of 8 among similar funds.
- Its 5-year annualized return was +11.4%.
- In the 2020 COVID crash it fell 24.2% and regained its old high 4 months after the low.
- Its worst full calendar year was 2022 (-10.3%); its best was 2024 (+21.1%).
- The deepest fall in its price history was 24.2% (Feb 19, 2020 to Mar 23, 2020), recovered by Jul 22, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +11.2% | — |
| 2025 | +14.8% | +14.72% |
| 2024 | +21.1% | +21.32% |
| 2023 | +20.1% | +20.07% |
| 2022 | -10.3% | -10.19% |
| 2021 | +12.1% | +12.04% |
| 2020 | +12.2% | +11.56% |
| 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 | Lost 24.2% over that stretch · deepest drop along the way 24.2%, back to its old high 4 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 15.6% over that stretch · deepest drop along the way 15.6%, back to its old high 8.6 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 $5.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.32%, +0.52%, +1.13%.
How it works
BAUG does not pick stocks. Its adviser, Innovator Capital Management, and its sub-adviser, Milliman Financial Risk Management, build a package of FLEX options on the SPDR S&P 500 ETF Trust, which tracks the S&P 500. FLEX options are exchange-traded options with custom strike prices and expiration dates. Each package covers one outcome period, from August 1 to July 31. When the period ends, the fund cashes out the options and buys a new set, and a new cap is set on the first day.
For the August 1, 2025 to July 31, 2026 period, the cap was 15.80% before fees, or 15.01% after the 0.79% fee. The buffer covered the first 9% of the underlying ETF's losses, or 8.21% after fees. Holders bear any loss beyond 9% one-for-one. In the prospectus table, a 20% drop in the underlying ETF means an 11% fund loss. Gains above the cap are given up.
These outcomes apply only to shares held from the first day of the period to the last. Shares bought or sold partway through can get very different results, because the options move with the market along the way. Innovator posts updated figures daily. As of July 31, 2026, the largest position was a deep in-the-money call option worth about 102% of net assets, offset by a sold call worth about -2%. The fund is non-diversified, and through the S&P 500 it has heavy exposure to technology.
What it really costs
- BAUG 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 |
|---|---|---|---|---|
| BAUG | $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 keeps S&P 500 exposure but uses options to cushion moderate yearly losses, and gives up some upside in exchange.
BAUG can soften stock losses, but it cannot remove them. It launched in August 2019, so it has no record from 2008. In the 2020 COVID crash it fell 24.2% between February 19 and March 23, 2020, because the buffer applies only at the end of the outcome period, not partway through. It recovered by July 22, 2020, about four months later. In the 2022 bear market it fell 15.6% and took about 8.6 months to recover, until June 30, 2023. Its worst calendar year was 2022, at -10.19% per the prospectus. A retiree who sells in a slump could still lock in a real loss. The fund made no distributions, so it provides no income, and the cap trims strong years. It costs 0.79% a year, or $81 in year one on $10,000 under the SEC example. 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 who want S&P 500 exposure with a buffer on the first 9% of losses, accept capped gains, and can hold from August 1 to July 31.
- Cost-conscious buyers of buffer funds: its 0.79% expense ratio tied for lowest among eight similar funds, below their 0.86% average.
- Investors who want smaller swings: one-year volatility was 7.5% and beta was 0.58 as of October 27, 2026.
Look elsewhere if
- Anyone who needs regular income: the fund recorded no distributions, because it holds options rather than dividend-paying shares.
- Investors coming in mid-period who haven't checked the remaining cap and buffer, which can differ sharply from the stated outcomes.
- Those seeking protection from deep crashes or full upside: losses beyond 9% pass through one-for-one, and BAUG fell 24.2% in early 2020.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| BAUG this fund | 0.79% | $195.3M | +12.0% | +20.2% |
| 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 BAUG pay dividends?
No. BAUG recorded no distributions. The fund holds options on the SPDR S&P 500 ETF Trust instead of owning the stocks, and option holders don't receive the dividends paid on the underlying shares. All of the return comes from changes in the share price, within the limits of the cap and buffer. Investors who rely on portfolio income would need to get it from other holdings or by selling shares.
What happens if I invest in BAUG after the outcome period starts?
Your results can differ a lot from the stated cap and buffer. Those outcomes apply only to shares held from August 1 through July 31. If the S&P 500 fund has already risen, less upside may be left before the cap. If it has already fallen, some of the buffer may be used up. Innovator posts the remaining cap and buffer daily at innovatoretfs.com/baug, so investors can check before entering.
Is BAUG good for retirement?
It can play a defensive role, but its protection has limits. BAUG cushions moderate yearly declines, and its prospectus shows a 10.19% loss in 2022. It still fell 24.2% in the 2020 crash, then recovered in about four months. It pays no income, and its cap limits gains in strong years. Its annualized return was 20.2% over three years and 11.4% over five years, as of October 27, 2026.
BAUG vs BUFR: what's the difference?
BAUG is a single buffer fund that resets each August. FT Vest Laddered Buffer ETF (BUFR) is a laddered fund: it spreads money across buffer periods that start in different months, so results don't depend on one start date. BAUG costs less (0.79% vs 0.95%). Over the three years to October 27, 2026, BAUG returned 20.2% a year and BUFR returned 16.8%. BUFR is much larger, with about $10.5 billion in net assets against BAUG's $195 million.
How much does BAUG cost?
BAUG's expense ratio is 0.79%, all of it management fee, per the prospectus filed February 27, 2026. The SEC's standard example assumes $10,000 invested and a 5% annual return. On that basis, costs come to about $81 after one year, $252 after three, $439 after five and $978 after ten. That is below the 0.86% average for similar buffer funds and the same as Innovator's PJAN and PDEC. FT Vest's buffer funds charge 0.85% to 0.95%.