At a glance
ZSEP charges 0.79% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $122.6M in assets, the 8th largest of that group. Over the past year it returned +5.2% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds.
The short version
Innovator Equity Defined Protection ETF - 1 Yr September (ZSEP) holds FLEX options on the SPDR S&P 500 ETF Trust (SPY). They aim to protect against 100% of SPY's losses over a one-year outcome period, and in return gains are capped. For September 1, 2025 to August 31, 2026, the cap was 6.72% before fees. Its 0.79% expense ratio is tied for lowest among the buffer funds it was compared with.
Price history
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ZSEP +5.2% 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 | |
|---|---|---|---|---|---|---|
| ZSEP official prospectus, to Dec 31, 2024 | — | +6.80% | — | — | — | +6.58% |
| ZSEP price data to Oct 27, 2026 | +4.6% | +5.2% | — | — | — | +6.3% |
- Over the year to Oct 27, 2026, ZSEP returned +5.2%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+6.8%); its best was 2025 (+6.8%).
- The deepest fall in its price history was 4% (Feb 19, 2025 to Apr 8, 2025), recovered by May 15, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +4.6% | — |
| 2025 | +6.8% | +6.80% |
| 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 $23.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.83%, +0.24%, +0.57%.
How it works
ZSEP does not pick stocks. Innovator and its sub-adviser, Milliman Financial Risk Management, buy and sell FLEX options. These are exchange-traded options with custom strike prices and expiration dates, written on the SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500. As of July 31, 2026, the fund held three options, all expiring August 31, 2026. The first was a call with a $6.48 strike, which moves almost one-for-one with SPY and was worth about 109% of net assets. The second was a bought put at $645.08. The third was a sold call at $688.46, which offset about 9%. Cash was 0.24%.
Together, these options shape the result. For September 1, 2025 to August 31, 2026, the fund aimed to match SPY's gain up to a 6.72% cap (5.93% after its 0.79% fee) and to absorb 100% of SPY's losses (99.21% after fees). If SPY rose 20%, the fund aimed for 6.72%. If SPY fell 20%, it aimed for 0%. That protection is not guaranteed.
When a period ends, the fund collects the cash value of its options and buys a new one-year set. A new cap is set on the first day. The stated outcomes apply only to shares held for the whole period and are measured at net asset value (NAV). Buying partway through, selling early, or trading at a market price away from NAV can produce very different results.
What it really costs
- ZSEP 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 |
|---|---|---|---|---|
| ZSEP | $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 trades away nearly all upside beyond a small cap in exchange for a buffer designed to absorb S&P 500 losses over each one-year period.
ZSEP could cushion money that may be needed within a few years from stock-market losses. Its history is short. It launched in September 2024, so it has no record from the 2008, 2020 or 2022 sell-offs. Its only full calendar year, 2025, returned 6.8%. Its deepest drop was 4%, from February 19 to April 8, 2025, and it recovered by May 15, 2025, about 1.2 months later. That dip shows the buffer is measured at the end of the period, so someone who sells partway through can still take a loss. The fund has recorded no distributions, so it provides no income. Under the SEC's standard example, its 0.79% expense ratio costs about $81 in the first year on $10,000. The cap also limits gains in strong years. Past results don't predict future ones, and a retirement plan needs to 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 100% of losses buffered before fees each year, and who accept a low cap (6.72% for 2025–26).
- Those who can buy near the September 1 start and hold to August 31, when the stated outcomes apply.
- Cost-conscious buffer-fund investors: its 0.79% expense ratio is below the 0.86% average of the buffer funds it was compared with.
Look elsewhere if
- Investors who need income: no distributions have been recorded for this fund.
- Those who want more upside: its 5.2% one-year return through October 27, 2026 ranked last of eight buffer funds compared.
- Anyone who wants a long track record or a large fund: it launched in September 2024 and held about $123 million as of July 31, 2026.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| ZSEP this fund | 0.79% | $122.6M | +5.2% | — |
| 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
Can you lose money in ZSEP?
Yes. The 100% buffer applies before fees and only to shares held for the full outcome period. After the 0.79% fee, the net buffer is 99.21%. Partway through a period, the share price can still fall. ZSEP dropped 4% from February 19 to April 8, 2025, then recovered by May 15, 2025. The options it holds also carry derivatives risk, and the fund is not FDIC-insured.
Does ZSEP pay dividends?
No distributions have been recorded for ZSEP. The fund gets its S&P 500 exposure through FLEX options on the SPDR S&P 500 ETF Trust rather than by holding the stocks, so it is not built to pass along the index's dividends. It may suit investors who want protection against losses rather than income. Those who need regular cash payouts may want to compare dividend-focused funds.
What is ZSEP's upside cap?
For the outcome period from September 1, 2025 to August 31, 2026, the cap was 6.72% before fees, or 5.93% after the fund's 0.79% management fee. The cap resets at the start of each new one-year period, based on market conditions on that day. Innovator posts the cap for the period in progress, and how much of it remains, daily at innovatoretfs.com/zsep.
What's the difference between ZSEP and PJAN?
Both are Innovator buffer ETFs on the S&P 500, and both charge 0.79%. ZSEP's period starts in September and aims to buffer 100% of losses. PJAN's period resets in January, and its buffer and cap levels differ. PJAN is much larger, with about $1.4 billion as of July 31, 2026. Its one-year return through October 27, 2026 was 10.5%, against ZSEP's 5.2%. Comparing each fund's prospectus shows the trade-offs.
Is ZSEP good for retirement?
It may suit retirees who care more about avoiding stock losses than about growth. Its only full calendar year, 2025, returned 6.8%, and its one-year volatility was 2.5% as of October 27, 2026. Drawbacks include a low cap, no income, and no history through a major bear market, since it launched in September 2024. In the SEC's standard example, it costs $81 in the first year on $10,000.