With equities near all-time highs, an inverted yield curve, trade wars, and an increasing reliance on future Fed easing, Defined Outcome ETFs provide known buffers and market participation up to cap.
On the upcoming webcast, Defined Outcome ETFs Investing Overview + An RIA’s Buffered ETF Rotation Strategy, Graham Day, Vice President of Product and Research, Innovator ETFs; Bruce Bond, Co-Founder and CEO, Innovator ETFs; and John Benedict, Portfolio Manager & CEO, J2 Capital Management will help financial advisors learn about Defined Outcome ETF investing, how Buffered ETFs can fit into a client’s portfolio, and how advisors can create a globally-allocated equity portfolio with built-in buffers with the new listing of Innovator’s Nasdaq-100 and Russell 2000 Defined Outcome ETFs.
Specifically, Innovator ETFs has come out with a suite of Defined Outcome ETF strategies with a built-in buffer to help investors hedge against risks ahead, depending on one’s level of risk aversion.
For example, its April series includes the Innovator S&P 500 BUFFER ETF (BAPR), Innovator S&P 500 POWER BUFFER ETF (PAPR) and Innovator S&P 500 ULTRA BUFFER ETF (UAPR), which have a 9%, 15% and 30% buffer, respectively.
The April series joins Innovator’s other Defined Outcome ETFs, including the October series of Innovator S&P 500 Buffer ETF (Cboe: BOCT), Innovator S&P 500 Power Buffer ETF (Cboe: POCT) and Innovator S&P 500 Ultra Buffer ETF (Cboe: UOCT).
The July series includes Innovator S&P 500 Buffer ETF (CBOE: BJUL), Innovator S&P 500 Power Buffer ETF (CBOE: PJUL) and Innovator S&P 500 Ultra Buffer ETF (CBOE: UJUL).
The January series includes the Innovator S&P 500 Buffer ETF (BJAN), Innovator S&P 500 Power Buffer ETF (PJAN) and Innovator S&P 500 Ultra Buffer ETF (UJAN).
Finally, the June series includes the Innovator S&P 500 Buffer ETF (BJUN), Innovator S&P 500 Power Buffer ETF (PJUN) and Innovator S&P 500 Power Buffer ETF (UJUN).
Additionally, the more recently launched Innovator MSCI Emerging Markets Power Buffer ETF (EJUL) and Innovator MSCI EAFE Power Buffer ETF (IJUL) provide exposure to international emerging and developed markets up to a cap with downside buffer levels of 15% over a one-year outcome period.
The quarterly series of Defined Outcome ETFs are designed to provide investors an opportunity to purchase shares as close to the beginning of their respective Outcome Periods as possible. Investors can also purchase shares of a previously listed Defined Outcome ETF throughout the entire Outcome Period and obtain a current set of defined outcome parameters.
Knowing the return profile before investing can significantly reduce the uncertainty involved in buying equities, which typically are among the most volatile asset classes in many investors’ portfolios. Innovator Defined Outcome ETFs represent a new type of strategy that can be effective tools for investors to strike a balance between growth and risk mitigation in portfolios, in a systematic and disciplined manner.
Financial advisors who are interested in learning more about defined outcome strategies can register for the Tuesday, October 15 webcast here.
