At a glance
PAUG charges 0.79% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $852.7M in assets, the 8th largest of that group. Over the past year it returned +9.4% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned +15.6% a year. At its worst it fell 11.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months after the low.
The short version
Innovator U.S. Equity Power Buffer ETF - August (PAUG) holds FLEX options on the SPDR S&P 500 ETF Trust (SPY). Over each one-year outcome period starting August 1, it aims to deliver S&P 500 gains up to a cap while absorbing the first 15% of losses. Its 0.79% fee tied for the lowest among eight buffer funds compared, against a 0.86% average. In return, it pays no income and gives up gains above the cap.
Price history
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PAUG +9.4% 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 | |
|---|---|---|---|---|---|---|
| PAUG official prospectus, to Dec 31, 2024 | — | +12.28% | — | +8.86% | — | +9.13% |
| PAUG price data to Oct 27, 2026 | +8.6% | +9.4% | +15.6% | +9.4% | — | +10.0% |
- Over the year to Oct 27, 2026, PAUG returned +9.4%, 8th of 8 among similar funds.
- Its 5-year annualized return was +9.4%.
- Its worst full calendar year was 2022 (-6.8%); its best was 2023 (+17.7%).
- The deepest fall in its price history was 11.8% (Jan 4, 2022 to Oct 11, 2022), recovered by Jun 12, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +8.6% | — |
| 2025 | +12.3% | +12.28% |
| 2024 | +15.4% | +15.55% |
| 2023 | +17.7% | +17.90% |
| 2022 | -6.8% | -6.85% |
| 2021 | +7.6% | +7.28% |
| 2020 | — | +9.47% |
| 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 11.7% over that stretch · deepest drop along the way 11.8%, back to its old high 8 months after the low |
Dividends and income
No distribution history is available for this fund.
Distributions through Oct 27, 2026.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 $55.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.57%, +0.50%, +0.66%.
How it works
PAUG doesn't buy S&P 500 stocks directly. It puts at least 80% of net assets into investments tied to the SPDR S&P 500 ETF Trust (SPY), mainly FLEX Options. These are exchange-traded options whose strike prices and expiration dates can be customized. The options are set for an outcome period running August 1 to July 31. For the period ending July 31, 2026, the cap on gains was 12.25% and the buffer covered the first 15% of SPY losses, both before fees. After the 0.79% fee, they were 11.46% and 14.21%. Losses beyond 15% pass through one-for-one. Before fees, a 20% SPY drop means a 5% fund loss.
As of July 31, 2026, the fund held four SPY options, worth about 99.8% of assets, plus 0.26% cash. A low-strike call (105% of assets) tracked SPY's price. Puts with strikes of 632.08 and 537.27 formed the 15% buffer. A sold call at 709.51 (−5.3%) set the cap. When a period ends, the options settle in cash and the fund buys a new one-year set with a new cap.
The stated outcomes apply only to shares held for the full period. They are based on NAV (the value of the fund's holdings), not the market price. Buyers mid-period may get very different results. Innovator is the adviser and Milliman Financial Risk Management is the sub-adviser.
What it really costs
- PAUG 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 |
|---|---|---|---|---|
| PAUG | $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
PAUG keeps S&P 500 exposure but uses options to cushion the first 15% of losses each outcome period, and it has moved far less than the market.
PAUG could serve as a defensive way to hold U.S. stocks. As of October 27, 2026, its one-year volatility was 5.3% and its beta was 0.38, so it moved roughly 38% as much as the market. It launched in 2019 and has no 2008 record. Its weakest quarter was a 10.84% drop in early 2020. In the 2022 bear market it fell 11.8% between January 4 and October 11 and was back to its old high by June 12, 2023, about 8 months later. 2022 was its worst calendar year, at −6.85%. Someone who sells mid-period during a slump could still lock in a loss. It pays no income, so withdrawals mean selling shares. It costs 0.79% a year. Under the SEC's standard $10,000 example, that comes to $81 in year one and $978 over 10 years. 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 wanting SPDR S&P 500 ETF Trust exposure with a buffer against its first 15% of losses, held for full August-to-July outcome periods.
- Investors accepting capped gains for a gentler ride: its deepest price decline since mid-2020 was 11.8%, in 2022, recovered within 8 months.
- Cost-conscious buffer investors: its 0.79% annual expense ratio ties for lowest among eight buffer funds compared, below the 0.86% peer average.
Look elsewhere if
- Income seekers: its trailing yield was 0% as of October 27, 2026, because holding options instead of stocks means forgoing S&P 500 dividends.
- Investors wanting uncapped growth: gains were capped at 12.25% before fees for the outcome period ending July 31, 2026; caps reset each August.
- Investors buying mid-period or fearing deep crashes: full buffer benefits require holding August 1 to July 31, and losses beyond 15% pass through fully.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| PAUG this fund | 0.79% | $852.7M | +9.4% | +15.6% |
| 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
What is the PAUG cap and buffer?
For the outcome period from August 1, 2025 to July 31, 2026, PAUG's cap was 12.25%. Its buffer covered the first 15% of SPY losses. Both figures are before fees. After the 0.79% management fee, they were 11.46% and 14.21%. Each August 1, the fund buys new one-year options and a new cap is set, which can be higher or lower. Innovator posts updated outcome information daily at innovatoretfs.com/paug.
Does PAUG pay dividends?
No. PAUG made no distributions in the 12 months to October 27, 2026, and its trailing yield was 0%. The fund owns options on SPY, not the stocks themselves. Its return comes from changes in the value of those options. Investors who rely on regular cash payments would need to sell shares or use other holdings for income.
Can you lose money with PAUG?
Yes. The buffer covers only the first 15% of SPY losses, and only for shares held from August 1 to July 31. Beyond that, losses pass through one-for-one. Before fees, a 20% SPY drop means about a 5% fund loss, and a 50% drop means 35%. Prices also swing within a period. PAUG fell 11.8% between January 4 and October 11, 2022, and ended that year down 6.85%.
What's the difference between PAUG and BUFR?
Both use options to buffer S&P 500 losses, but they are built differently. PAUG runs one one-year outcome period starting each August 1. FT Vest's BUFR is a laddered fund: it staggers several buffer periods so they don't all reset at once. BUFR charges 0.95% a year, compared with PAUG's 0.79%. As of October 27, 2026, BUFR returned 11.6% over one year and PAUG returned 9.4%. Innovator's PJAN and PDEC use the same strategy as PAUG, with different start months.
What happens if you buy PAUG after August 1?
Your results can differ a lot from the stated cap and buffer. Those outcomes apply only to shares held from the first day of the outcome period to the last. If the fund has already risen, less upside is left before the cap. If it has fallen, part of the buffer may already be used up. The market price can also differ from NAV. Innovator's website posts updated outcome figures daily.