At a glance
ZALT charges 0.69% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $776.2M in assets, the 8th largest of that group. Over the past year it returned +7.8% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned +11.1% a year.
The short version
Innovator U.S. Equity 10 Buffer ETF - Quarterly (ZALT) is a buffered fund. It uses FLEX options on the State Street SPDR S&P 500 ETF Trust (SPY) to absorb the first 10% of losses in each three-month period. In return, gains are capped. Its 0.69% expense ratio is the lowest in a group of eight buffer ETFs. But its one- and three-year returns ranked last in that group as of October 27, 2026.
Price history
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ZALT +7.8% 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 | |
|---|---|---|---|---|---|---|
| ZALT official prospectus, to Dec 31, 2024 | — | +9.23% | — | — | — | +11.21% |
| ZALT price data to Oct 27, 2026 | +6.7% | +7.8% | +11.1% | — | — | +10.5% |
- Over the year to Oct 27, 2026, ZALT returned +7.8%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+9.4%); its best was 2024 (+11.9%).
- The deepest fall in its price history was 8.2% (Feb 20, 2025 to Apr 8, 2025), recovered by May 15, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +6.7% | — |
| 2025 | +9.4% | +9.23% |
| 2024 | +11.9% | +12.20% |
| 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 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
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 added a net $133.4M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.82%, +0.32%, +0.51%.
How it works
ZALT does not pick stocks. At least 80% of its net assets go into investments tied to the State Street SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500 Index. Rather than owning SPY shares, the fund mostly holds FLEX options. These are customizable options traded on an exchange. As of July 31, 2026, four option positions on SPY made up 99.9% of assets, with 1.81% in cash. The largest is a call option with a very low strike price, and it moves almost one-for-one with SPY. The other three are put options that create the buffer and a sold call that sets the cap.
The fund works in three-month "outcome periods." On the first day of each period, a new cap is set. The cap is the most the fund can gain that quarter. From January 1 through March 31, 2026, the cap was 3.01% before fees, or 2.83% after the 0.69% management fee. The buffer aims to absorb the first 10% of SPY losses (9.82% after fees). Losses beyond that pass through one for one. If SPY fell 20% in a quarter, the fund would aim to fall about 10% before fees. When a period ends, the options expire and the fund buys a new set.
These outcomes apply only to shares held for a full period. Buying or selling partway through can give very different results. Results over several quarters will also differ from a single quarter's outcomes. Innovator posts updated figures daily at innovatoretfs.com/zalt.
What it really costs
- ZALT charges 0.69% 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 $70 in the first year and $859 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| ZALT | $70 | $221 | $384 | $859 |
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 offers S&P 500 exposure with a 10% quarterly loss buffer, and it has been far less volatile than the stock market, with a one-year beta of 0.28.
ZALT could cushion the stock part of a portfolio against modest quarterly drops. It launched October 2, 2023, so it has no record from the 2008, 2020 or 2022 sell-offs. Its deepest drop was 8.2%, from February 20 to April 8, 2025. It recovered by May 15, 2025, about 1.2 months later. Even its weaker calendar year, 2025, was a 9.23% gain. The trade-off is a tight cap on gains: its one- and three-year returns ranked last among eight buffer ETFs as of October 27, 2026. It pays no income, so drawing cash means selling shares, and selling mid-quarter may not deliver the stated buffer. Its 0.69% expense ratio is below the 0.86% peer average. 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 against the first 10% of quarterly losses, and who accept gains capped at a few percent per quarter.
- Cost-conscious buffer buyers: its 0.69% expense ratio is the lowest among eight similar buffer ETFs, which average 0.86%.
- Retirees who value a smoother ride: its deepest drop was 8.2% in early 2025, and it recovered in about 1.2 months.
Look elsewhere if
- Investors who need regular income from a holding, since the fund has recorded no distributions.
- Those seeking most of the stock market's gains: its one- and three-year returns ranked last of eight buffer ETFs as of October 27, 2026.
- Anyone wanting protection from deep crashes: losses beyond 10% in a quarter pass through one for one, and the fund has no 2008, 2020 or 2022 record.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| ZALT this fund | 0.69% | $776.2M | +7.8% | +11.1% |
| 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 ZALT pay dividends?
No. ZALT has recorded no distributions. It holds FLEX options on the State Street SPDR S&P 500 ETF Trust (SPY) rather than SPY shares, and its outcomes are based on SPY's share price. Any return comes from changes in the fund's share price. Investors who need cash from this holding would have to sell shares. Selling before a three-month outcome period ends may give results that differ from the stated buffer and cap.
How does the ZALT buffer work?
ZALT aims to absorb the first 10% of SPY losses in each three-month outcome period, before fees. After its 0.69% management fee, the buffer is 9.82%. Losses beyond 10% pass through one for one. For example, a 20% SPY drop would mean about a 10% fund loss before fees. In exchange, gains are capped each quarter. From January 1 to March 31, 2026, the cap was 3.01% before fees. The buffer is not guaranteed.
What happens if you buy ZALT in the middle of a quarter?
You may get a different buffer and cap than the stated ones. The stated outcomes apply only to shares held from the first day of an outcome period to its last. If SPY has already risen, less upside may remain under the cap. If it has fallen, part of the buffer may already be used up. Innovator posts updated buffer and cap figures daily at innovatoretfs.com/zalt.
ZALT vs BUFR: what's the difference?
Both are buffer (defined-outcome) ETFs, but they differ in structure, cost and size. ZALT resets one 10% buffer and cap every three months. BUFR, the FT Vest Laddered Buffer ETF, uses a laddered approach and had $10.5 billion in net assets as of August 31, 2026. ZALT costs 0.69% a year and BUFR costs 0.95%. Through October 27, 2026, BUFR returned 11.6% over one year and 16.8% a year over three years. ZALT returned 7.8% and 11.1%.
Is ZALT's expense ratio high?
It is low for a buffer ETF but higher than a plain index fund. ZALT charges 0.69% a year, the lowest in a group of eight similar buffer funds, which average 0.86%. The SEC's standard example assumes $10,000 invested with a 5% yearly return. On that basis, costs would be about $70 after one year, $384 after five years and $859 after ten. Plain S&P 500 index funds usually cost much less, but they offer no buffer.