Innovator Capital Management has expanded on its line of Defined Maturity exchange traded fund strategies with four new January Series strategies to help investors gain exposure to U.S., developed international and emerging markets with a built-in buffer to hedge against potential risks ahead.
Specifically, Innovator rolled out the Innovator Nasdaq-100 Power Buffer ETF (NJAN), Innovator Russell 2000 Power Buffer ETF (KJAN), Innovator MSCI EAFE Power Buffer ETF (IJAN) and Innovator MSCI Emerging Markets Power Buffer ETF (EJAN), which all come with a 15.0% buffer level. Both NJAN and KJAN show a 0.79% expense ratio while IJAN has a 0.85% expense ratio and EJAN has a 0.89% expense ratio.
“Today’s listings expand our category-creating Defined Outcome ETF suite with four new Power Buffer ETFs based on the Nasdaq 100, Russell 2000, MSCI EAFE, and MSCI Emerging Markets Indexes that provide exposure to major market segments with built-in downside buffers of 15% to mitigate market risks,” Bruce Bond, CEO of Innovator ETFs, said in a note. “Innovator is committed to building out a full range of Defined Outcome ETFs, based on broad equity benchmarks, that provide advisors tools to construct globally diversified equity portfolios with known upside potential and downside buffers against loss.”
Innovator ETFs’ suite of Defined Outcome ETF strategies come with a built-in buffer to help investors hedge against risks ahead, depending on one’s level of risk aversion.
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.
The new NJAN, KJAN, IJAn and EJAN will provide the price return of the underlying benchmark Nasdaq-100, Russell 2000, MSCI EAFE Index and MSCI Emerging Markets Index, respectively, with up to a predetermined cap, while buffering investors against the first 15% of losses over the outcome period. The ETF can be held indefinitely, resetting at the end of each outcome period, approximately annually.
“Innovator Defined Outcome ETFs are the first ETFs that allow investors to take advantage of market growth while maintaining defined levels of buffers against loss,” according to Innovator.
For more information on new fund products, visit our new ETFs category.