Innovator International Developed Power Buffer ETF May (IMAY)

IMAY sits in the same family as IMAR — both are Innovator buffered ETFs holding the same underlying universe of developed-market stocks from outside the US — but with one structural difference: IMAY resets its protective options every May, not March. For an investor who timed their entry or who prefers a May reset cycle, IMAY offers a separate on-ramp into the buffered international-equity strategy.

The fund owns a diversified portfolio of roughly 100–200 large and mid-cap stocks from developed markets: German industrials, Japanese exporters, European banks, Swiss pharma, UK consumer companies, and Korean electronics makers. The MSCI EAFE index is the template. On top of that equity position, IMAY purchases put options annually to protect against declines beyond a specified threshold (typically a 9–15% loss buffer, though the exact level depends on market conditions at reset time). To pay for that insurance, the fund sells call options that cap gains in any given year (often around 20–30% upside, again dependent on volatility and option prices when the trade is structured).

The mechanics mirror IMAR exactly: downside is cushioned, upside is bounded, the cost is embedded in the expense ratio and option transaction costs, and the protection resets every May. For someone who dislikes being reset in March (perhaps because their fiscal or calendar year runs differently), May offers an alternative. For a financial advisor managing client accounts on a May cycle, or for someone who made their initial investment in late April and would be immediately reset weeks later, May can be the more natural choice.

The fund is neither larger nor smaller than IMAR, neither cheaper nor more expensive — they are functional twins separated only by reset date. Which you choose depends on when you plan to monitor the protection level and when you want the reset to occur.

The buffer mechanism is the same: in a year when developed-market stocks fall 18%, IMAY might decline 9%, absorbing half the loss. In a year when they rise 30%, IMAY might rise 20%, giving back some of the excess gain. The payoff is asymmetric — protection down, penalty up — and its value depends entirely on what actually happens in the market between May resets.

IMAY resets in May, meaning the protection level at any given moment reflects market conditions from the preceding May. If global stocks have risen sharply since May, the put strike (the loss level that triggers protection) will be further below the current price, requiring a steeper drop to benefit from the cushion. If markets have fallen, the put strike may be closer to the price, offering more immediate protection. The annual nature of the reset means you are not continuously re-optimizing the strike prices; you take what the market offers in May each year.

The fund is useful for the same cohort as any buffer ETF: investors seeking to hold equities but wanting a defined loss ceiling, those uncomfortable with full equity volatility, retirees concerned about large declines early in retirement, and investors trying to overcome behavioral temptations to panic-sell. It is not suitable for long-term buy-and-hold investors who can afford to ride out full market swings, nor for those who expect prolonged bull markets and want to capture every penny of upside. The cost of protection — both the expense ratio and the implicit cap — is real.

One practical note: IMAY and IMAR are held in some institutional accounts on separate sleeves precisely because they reset at different times. A money manager might hold both to stagger reset dates or to let different clients choose their preferred cycle. If you are building your own portfolio, pick one or the other based on when you want that annual protection reset to occur, not based on perceived performance differences — they are substantively the same fund run on different calendars.

To evaluate IMAY, review the fund’s prospectus and current holdings snapshot, noting the protection level and upside cap. Check the weighted-average maturity of the current options — if it is early May, the protection is fresh and runs nearly a full twelve months; if it is late April, reset is imminent. Compare the fund’s performance to both bare MSCI EAFE returns and to IMAR’s returns to understand the buffer’s actual drag in recent years. Decide whether you value the downside cushion enough to accept the upside cap, and confirm that May’s reset timing fits your own calendar and rebalancing cycle. Finally, keep in mind that the fund is not a hedge against currency risk; it holds international stocks priced in foreign currencies, so exchange-rate moves will amplify or dampen returns independently of the buffer mechanism.