Elevated equity valuations. Low bond yields. Potentially rising interest rates. There’s a lot of challenges ahead in 2022, and investors will need to position their portfolios carefully to stay one step ahead of tough market conditions. Defined outcome ETFs can help investors maintain their market exposure while seeking to buffer their portfolio against risks ahead.
In the upcoming webcast, How to Stay Invested While Seeking to Buffer Against Risk In 2022, Innovator ETFs’ co-founder and CEO, Bruce Bond, and vice president of product and research, Graham Day, will discuss how buffer ETFs can help investors remain fully invested in the markets up to a cap, with built-in buffers to help manage downside risks.
For example, the June series includes the Innovator S&P 500 Buffer ETF (BJUN), the Innovator S&P 500 Power Buffer ETF (PJUN), and the Innovator S&P 500 Power Buffer ETF (UJUN), which have a 9%, 15%, and 30% buffer, respectively.
The 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 the buffer strategy can register for the Tuesday, January 11 webcast here.