BAUG vs ZALT

BAUGCInnovator U.S. Equity Buffer ETF

ZALTAInnovator U.S. Equity 10 Buffer ETF - Quarterly

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.

ZALT The defined-outcome trade on a three-month clock: ZALT follows SPY up to a cap and buffers the first 10% of a decline, then resets both every quarter. Four fresh caps a year, at a fee under the shallow-buffer median.

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.

ZALT The fund seeks to follow SPY's return up to a predetermined cap while providing a 10% downside buffer over each three-month outcome period. It may be held indefinitely, with the defined outcomes resetting at the end of each period.

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.

• ZALT Resets on a quarterly clock: a new cap is set the first day of each calendar quarter and the 10% buffer starts over. Can be held indefinitely, no rolling into a new ticker.sec.govcboe.com
• At 0.69% it undercuts the going rate for 10% buffer funds on the S&P 500, where peers like SIXZ, JULT and BJUN charge 0.74% to 0.79%.
• The cushion is built from FLEX options on SPY itself, so the thing you are hedged against is the same fund most investors already watch.sec.gov
• Sits among the stronger implementations in its shallow-buffer peer group on cost and ease of trading.

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%.

• ZALT Three months of upside buys a lower ceiling. Each quarter's cap is priced off three-month options, so it lands well below what a 12-month buffer fund can offer.sec.gov
• Buy mid-quarter and you inherit whatever cap and buffer are left, not the full 10%. The prospectus says so plainly.sec.gov
• The fee comes out of the cushion: with the 0.69% fee counted, the prospectus puts the net buffer at 9.82% per period. No distributions so far, so return shows up in price.sec.gov

Full BAUG profile⁠

Full ZALT profile⁠