According to Innovator ETFs’ head of distribution Trevor Terrell, there are a lot of different ways to manage risk. The way Innovator ETFs does this is by offering solutions “only available in insurance wrappers or in bank products” through the ETF vehicle.
“We provide defined outcomes in an ETF,” Terrell told NYSE’s Judy Shaw at Exchange 2023. “You get market exposure with built-in risk management.”
With Innovator’s Defined Outcome ETFs, investors can choose their market exposure, whether it be the S&P 500 or the Nasdaq-100. The issuer leverages what’s been available in other structures and uses the ETF vehicle’s liquidity, tax efficiency, and tradability. Terrell added: “What we’re trying to do is put guardrails around your exposure all within the ETF chassis.”
Innovator recently listed four new income-focused Defined Outcome ETFs. The four new Innovator Premium Income Barrier ETFs seek to offer fixed rates of high income with protective barriers against decline in the S&P 500 over a one-year period.
Innovator ETFs has been growing its product solutions team. So, financial advisors who want to see how buffered ETFs can benefit their clients should call Innovator ETFs.