This ETF buys and sells FLEX options on the underlying ETF SPY. Over an outcome period of about one year, it is designed to capture upside returns up to a cap while fully protecting against downside losses.

It suits conservative investors who want to participate in stock market gains while minimizing the risk of losing principal.

It is an actively managed ETF run by Innovator.

The fund invests most of its net assets in FLEX options referencing the underlying ETF (SPY). This creates a structure in which, over a set outcome period, upside returns are captured up to a predetermined cap and the full amount of the underlying asset's downside losses is protected. When an outcome period ends, the fund automatically rolls into a new one.

• Structure that fully protects against downside losses
• Automatic renewal of defined one-year outcome periods

Assets under management (AUM) stand at $64.2M, and the total expense ratio is 0.79% per year.

Outcome periods and protection levels differ from those of other defined protection and buffer ETFs from the same issuer, so the effective terms vary depending on the starting point.

The fund is linked to the movements of the underlying S&P 500, but because it applies a cap on the upside and protection on the downside, it follows a different path from a standard index-tracking ETF. If you enter midway through an outcome period, your effective exposure may differ from the originally set terms.

During volatile periods when concerns about principal losses are high, interest in defined protection and buffer ETFs tends to rise, and inflows are spread across the lineups of similar issuers.

Full protection against downside losses is its core strength, but because upside returns are tied to a cap, returns relative to the index are limited in strong bull markets.

The same issuer's defined protection and buffer lineup includes products such as BUFR and BUFD, which offer a lower level of downside protection in exchange for a higher upside cap, letting you strike a different balance between protection strength and upside participation. An approach like SFLR, which drops downside protection altogether and keeps only a buffer zone (floor), can also be considered an alternative, and comparing similar product families that start with different outcome periods each month can help spread out your entry timing.

Before investing in ZMAY, you need to understand exactly how a defined outcome structure works. The protection level, the cap, and the entry timing all affect your actual returns, so a prior review is important.

Because the upside is tied to a cap, returns may lag those of a standard S&P 500 tracking ETF in a strong bull market, and if you buy midway through an outcome period, the originally designed protection and cap terms may not apply as is.

It is a structured ETF suited to conservative investors who want limited participation in stock market gains while minimizing the risk of losing principal. If you want more upside participation, comparing it with similar products such as BUFR and BUFD is recommended.