Innovator Capital Management, LLC (Innovator), creator and pioneer
of Buffer ETF™ investing, today announced the listing of 6-Month,
1-Year and 2-Year 100% Buffer ETFs™ which seek to provide capped
upside exposure to the SPDR S&P 500 ETF (SPY), with 100%
downside protection.
"We pioneered the world’s first 100% Buffer ETFs and are
thrilled to expand this lineup," said Bruce Bond, Co-Founder and
CEO of Innovator ETFs. “With record amounts invested in
money-market and short-term bond funds, these ETFs offer investors
a way to pursue higher upside return potential, without taking on
additional downside risk.”
The highest short-term interest rates in two decades have
increased the demand for protective strategies as rising rates have
pushed caps higher. In 2023 alone, insurance companies sold $261
billion in fixed annuities, up 37% over the previous year.1
"With the Fed hinting at a rate cut later this year, this may be
a timely opportunity to lock in these compelling levels of upside
potential,” said Innovator CIO Graham Day. “In addition to their
attractive payoff profiles, these ETFs provide significant
tax-alpha potential over similar fully-protected instruments like
CDs, annuities or even cash. With equity markets at all-time highs,
these ETFs give investors a way to invest with confidence."
Innovator 100% Buffer ETFs™ listed on July 1:
Ticker |
Name |
|
Outcome Period |
Upside Cap |
JAJL |
Innovator Equity Defined Protection ETF - 6 Mo Jan/Jul |
|
6
Months |
5.00 |
% |
ZJUL |
Innovator Equity Defined Protection ETF - 1 Yr July |
|
1
Year |
9.50 |
% |
AJUL |
Innovator Equity Defined Protection ETF - 2 Yr to July 2026 |
|
2 Years |
18.20 |
% |
See the full list of Innovator ETFs listing and rebalancing on
July 1.
About Innovator
Innovator was established in 2017 by Bruce Bond and John
Southard, founders of the PowerShares ETF lineup that has grown to
be the fourth largest in the world. The listing of three Innovator
Buffer ETFs™ in August 2018 marked the inception of the world’s
first Defined Outcome ETFs™. Innovator is dedicated to providing
ETFs with built-in risk management that offer investors a high
level of predictability around their investment outcomes. Today,
with more than 100 ETFs and $19 billion in AUM, Innovator is the
industry’s leading provider of Defined Outcome ETFs™.
The Funds have characteristics unlike many other
traditional investment products and may not be suitable for all
investors. For more information regarding whether an investment in
the Fund is right for you, please see "Investor Suitability" in the
prospectus.
The Funds face numerous market trading risks, including active
markets risk, authorized participation concentration risk, buffered
loss risk, cap change risk, capped upside return risk, correlation
risk, liquidity risk, management risk, market maker risk, market
risk, non-diversification risk, operation risk, options risk,
trading issues risk, upside participation risk and valuation risk.
For a detailed list of fund risks see the prospectus.
There is no guarantee the Funds will be successful in
providing the sought-after protection. If the Outcome Period has
begun and the Underlying ETF has increased in value, any
appreciation of the Fund by virtue of increases in the Underlying
ETF since the commencement of the Outcome Period will not be
protected by the Buffer, and an investor could experience losses
until the Underlying ETF returns to the original price at the
commencement of the Outcome Period.
Fund shareholders are subject to an upside return cap
(the "Cap") that represents the maximum percentage return an
investor can achieve from an investment in the funds' for the
Outcome Period, before fees and expenses. If the Outcome Period has
begun and the Fund has increased in value to a level near to the
Cap, an investor purchasing at that price has little or no ability
to achieve gains but remains vulnerable to downside risks.
Additionally, the Cap may rise or fall from one Outcome Period to
the next. The Cap, and the Fund's position relative to it, should
be considered before investing in the Fund. The Fund's website,
www.innovatoretfs.com, provides important Fund information as well
information relating to the potential outcomes of an investment in
a Fund on a daily basis.
These Funds are designed to provide point-to-point exposure to
the price return of the Reference Asset via a basket of Flex
Options. As a result, the ETFs are not expected to move directly in
line with the Reference Asset during the interim period.
Investors purchasing shares after an outcome period has begun
may experience very different results than fund's investment
objective. Initial outcome periods are approximately 6 months, 1
year and 2 years, beginning on each fund's inception date.
Following the initial outcome period, each subsequent outcome
period will begin on the first day of the month the fund was
incepted. After the conclusion of an outcome period, another will
begin.
FLEX Options Risk The Funds will utilize
FLEX Options issued and guaranteed for settlement by the Options
Clearing Corporation (OCC). In the unlikely event that the OCC
becomes insolvent or is otherwise unable to meet its settlement
obligations, the Funds could suffer significant losses.
Additionally, FLEX Options may be less liquid than standard
options. In a less liquid market for the FLEX Options, the Fund may
have difficulty closing out certain FLEX Options positions at
desired times and prices. The values of FLEX Options do not
increase or decrease at the same rate as the reference asset and
may vary due to factors other than the price of reference
asset.
Investing involves risk. Principal loss is possible. All rights
reserved. Innovator ETFs are distributed by Foreside Fund Services,
LLC.
The Funds’ investment objectives, risks, charges and expenses
should be considered carefully before investing. The prospectus and
summary prospectus contain this and other important information,
and it may be obtained at innovatoretfs.com. Read it carefully
before investing.
The following marks: Accelerated ETFs®, Accelerated Plus ETF®,
Accelerated Return ETFs®, Barrier ETF™, Buffer ETF™, Defined
Outcome Bond ETF®, Defined Outcome ETFs™, Defined Protection ETF™,
Define Your Future®, Enhanced ETF™, Floor ETF®, Innovator ETFs®,
Leading The Defined Outcome ETF Revolution™, Managed Buffer ETFs®,
Managed Outcome ETFs®, Step-Up™, Step-Up ETFs™, Target Protection
ETF™ and all related names, logos, product and service names,
designs, and slogans are the trademarks of Innovator Capital
Management, LLC, its affiliates or licensors. Use of these terms is
strictly prohibited without proper written authorization.
Copyright © 2024 Innovator Capital Management,
LLC | 800.208.5212
_____________________
1 Source: SIFMA