BAUG vs XTR

BAUGCInnovator U.S. Equity Buffer ETF

XTRCGlobal X S&P 500 Tail Risk ETF

In short

BAUG A year of S&P 500 exposure with the first 9% of losses absorbed, in exchange for an upside cap set fresh every August 1. This is the August-reset seat in Innovator's buffer lineup, built to be held the full twelve months.

XTR Most downside-protection ETFs sell away your upside to pay for it. XTR pays cash instead: it owns the S&P 500 stocks and buys 10% out-of-the-money puts every quarter, leaving the upside uncapped.

Stated mandate

BAUG The Fund seeks returns linked to its underlying ETF, subject to a predetermined upside cap, while protecting against the first 9% of underlying losses during the applicable outcome period.

XTR The Fund seeks to track the performance of the Cboe S&P 500 Tail Risk Index before fees and expenses.

Why people hold it

• BAUG Mechanically simple: the first 9% of the reference S&P 500 ETF's losses over the outcome period are absorbed, and upside runs to a cap reset each August 1.innovatoretfs.com
• No style drift. It delivers the defined-outcome structure on its stated reference fund and nothing else, which is exactly what the prospectus advertises.
• The 0.79% fee sits right at the median for annual buffer funds. You are not paying a premium for the August calendar slot.
• Live since 2019, so it has run through multiple complete 12-month outcome cycles rather than being an untested launch.

• XTR No cap on the gains. The hedge is bought with cash rather than funded by selling calls, so index rallies come through less the put premium and fees.sec.gov
• Costs 0.25%, well under half of what the defined-outcome funds it competes with typically charge for downside protection.
• Owns the roughly 500 S&P 500 stocks themselves, with the put position layered on top, rather than wrapping the index in a stack of options.sec.gov
• Rules-based and mechanical: puts are bought at 10% below the prevailing index level each quarter and held to expiration, with no manager guessing at timing.sec.gov

Worth knowing

• BAUG Thinly traded next to its peers, so spreads can widen. Order type and timing matter more here than in a mega-cap index fund.
• Buy mid-period and your own buffer and cap differ from the stated terms, which run August 1 to July 31 and are measured before the fund's fee.innovatoretfs.com
• Cheaper wrappers around the same idea exist: BUFB ladders buffers for 0.10%, and ZALT runs a quarterly reset at 0.69%.

• XTR Protection starts about 10% down and resets quarterly, so garden-variety dips are absorbed in full and the gap widens if the market rallies mid-quarter.sec.gov
• Insurance is not free. The quarterly premium is a steady cost against plain index exposure, and in calm markets the puts expire worthless.sec.gov
• A small fund that trades thinly, so limit orders matter and subscale products carry more risk of being closed than the category's giants.

Full BAUG profile⁠

Full XTR profile⁠