Innovator Expands EFA-Linked Buffer Suite With IMAR

On Friday, Innovator added a new defined outcome ETF to its library with the Innovator International Developed Power Buffer ETF – March (NYSE Arca: IMAR).

IMAR has a net expense ratio of 0.85%, according to the fund prospectus. The ETF mainly holds Flexible Exchange (FLEX) options that reference the iShares MSCI EAFE ETF (EFA) in order to deliver the price return of that fund. EFA offers exposure to a wide range of large and midcap securities across more than 20 developed markets, excluding the U.S. and Canada.

The return cap for IMAR is 19.30% before expenses. The fund also includes a downside buffer against the first 15% of losses during the outcome period, also before expenses. These outcomes may only occur if investors hold shares from the start of the outcome period until the conclusion of said period.

The outcome period for IMAR concludes on February 28, 2025. Following conclusion of the first outcome period, the fund will then reset and invest in a new series of FLEX options to begin the next outcome period.

More New Innovator ETFs Likely

Innovator’s offering includes nine other ETFs that provide exposure to the performance of EFA with a cap and a 15% downside buffer. Assuming the suite will include a fund resetting in each month of the calendar year, Innovator will likely be launching more funds that reset in May, June, and August, respectively.

IMAR is just the latest addition to Innovator’s lineup, which includes more than 110 U.S.-listed ETFs representing roughly $18 billion in total assets. Perhaps fittingly, the firm won the Most Innovative Issuer award for 2023 at the ETF Express awards, which took place at VettaFi’s Exchange conference in February. Its largest fund is the $1.2 billion Innovator U.S. Equity Power Buffer ETF – January (PJAN).

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