At a glance
ZAUG charges 0.79% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $97.5M in assets, the 8th largest of that group. Over the past year it returned +5.4% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds.
The short version
Innovator Equity Defined Protection ETF - 1 Yr August (ZAUG) uses FLEX options on the SPDR S&P 500 ETF Trust to follow S&P 500 gains up to a cap, while seeking to buffer 100% of losses over each one-year outcome period that starts August 1. For the period ending July 31, 2026, the cap was 7.28% before fees. Its 0.79% expense ratio tied for lowest among eight buffer funds compared, but the low cap limits gains.
Price history
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ZAUG +5.4% 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 | |
|---|---|---|---|---|---|---|
| ZAUG official prospectus, to Dec 31, 2024 | — | +7.36% | — | — | — | +7.71% |
| ZAUG price data to Oct 27, 2026 | +4.8% | +5.4% | — | — | — | +7.1% |
- Over the year to Oct 27, 2026, ZAUG returned +5.4%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+7.4%); its best was 2025 (+7.4%).
- The deepest fall in its price history was 4.8% (Feb 19, 2025 to Apr 8, 2025), recovered by May 15, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +4.8% | — |
| 2025 | +7.4% | +7.36% |
| 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 withdrew a net $8.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.80%, +0.37%, +0.42%.
How it works
ZAUG does not pick stocks. It holds FLEX options, which are exchange-traded options with custom strike prices and expiration dates. They are tied to the State Street SPDR S&P 500 ETF Trust, which tracks the S&P 500. The fund may also hold that ETF directly. Innovator Capital Management is the adviser and Milliman Financial Risk Management is the sub-adviser. As of July 31, 2026, three option positions made up almost all of the fund, with 0.2% in cash.
The options are set up to create fixed outcomes over a one-year outcome period. For August 1, 2025 to July 31, 2026, the cap on gains was 7.28% before fees, or 6.49% after the 0.79% management fee. The buffer aimed to absorb 100% of the underlying ETF's losses, or 99.21% after the fee. In the prospectus examples, a 5% rise in the underlying ETF gives the fund 5%, a 20% rise gives 7.28%, and a 20% fall gives 0%.
Those outcomes apply only to shareholders who hold for the whole period. They are measured on net asset value (NAV), the per-share value of the fund's holdings, not on market price. If you buy or sell partway through, your result can be very different. At the end of each period the options settle in cash. The fund then buys new options that expire in about a year, and a new cap is set on the first day. Innovator posts updated figures daily at innovatoretfs.com/zaug. The buffer is not guaranteed.
What it really costs
- ZAUG 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 |
|---|---|---|---|---|
| ZAUG | $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 aims to trade nearly all S&P 500 upside above a modest cap for a buffer against 100% of losses over each one-year period.
ZAUG launched in August 2024, so it has no record through the 2008, 2020 or 2022 downturns. Its only full calendar year, 2025, returned 7.36%. Its deepest drop was 4.8%, from February 19 to April 8, 2025, and it was back to its earlier high by May 15, 2025, about five weeks later. So even with a 100% buffer, the price can dip during the period. That matters for anyone who has to sell before the period ends. The fund recorded no distributions, so drawing income means selling shares. It costs 0.79% a year. In the SEC's standard example, that is about $81 in the first year and $978 over 10 years on $10,000. In strong markets the cap means it will trail stocks. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Retirees seeking a shield against 100% of SPDR S&P 500 ETF Trust losses (before fees) who can hold through a full one-year outcome period.
- Cautious investors: one-year volatility (price swings) was 2.6%, and the deepest dip over that year was 1.7%, through October 27, 2026.
- Cost-conscious buffer-fund buyers: the 0.79% expense ratio ties for lowest among eight buffer ETFs compared, below the 0.86% peer average.
Look elsewhere if
- Growth seekers: gains were capped at 7.28% before fees (6.49% after) for the outcome period ending July 31, 2026; strong market years are largely missed.
- Anyone likely to enter or exit mid-period: the cap and buffer apply only to full-period holders, and shares fell 4.8% between February and April 2025.
- Retirees needing regular income: no distributions have been recorded for this fund, so spending money would have to come from trimming the position.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| ZAUG this fund | 0.79% | $97.5M | +5.4% | — |
| 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 ZAUG really protect against 100% of losses?
It aims to, but there is no guarantee. For August 1, 2025 to July 31, 2026, the buffer sought to cover 100% of the underlying S&P 500 ETF's losses before fees, or 99.21% after the 0.79% fee. It applies only to shareholders who hold for the full outcome period. The price can still fall partway through. ZAUG dropped 4.8% between February 19 and April 8, 2025, then recovered by May 15, 2025.
What is ZAUG's upside cap?
For the outcome period from August 1, 2025 to July 31, 2026, the cap was 7.28% before fees, or 6.49% after the fund's 0.79% management fee. If the underlying SPDR S&P 500 ETF Trust rose more than that, the fund's gain stopped at the cap. The cap is reset on the first day of each new one-year period, and Innovator posts the latest terms at innovatoretfs.com/zaug.
Does ZAUG pay dividends?
No. The fund recorded no distributions. Its returns come from changes in the value of the FLEX options it holds on the SPDR S&P 500 ETF Trust, not from dividend payments. An investor who wants cash from ZAUG would need to sell shares. Selling partway through an outcome period can give a result that differs from the fund's stated cap and buffer.
What happens if I buy ZAUG in the middle of the outcome period?
Your result may look very different from the stated outcomes. The cap and buffer are measured from the first day of each one-year period. If you buy later, the upside left to you and the protection you get depend on how the fund and the underlying ETF have moved since then. Innovator updates these figures daily at innovatoretfs.com/zaug. Checking them before buying shows what the remaining period may offer.
ZAUG vs PJAN: what's the difference?
Both come from Innovator and charge 0.79% a year. PJAN, the Innovator U.S. Equity Power Buffer ETF - January, is much larger: about $1.44 billion in net assets versus about $97.5 million for ZAUG, as of July 31, 2026. PJAN returned 10.5% over one year to October 27, 2026, against 5.4% for ZAUG. PJAN resets in January and has its own buffer and cap terms. Those terms are worth comparing with ZAUG's 100% buffer and lower cap.