Innovator Capital Management announced Tuesday the launch of seven Defined Outcome ETFs on the Cboe BZX, including its second Defined Protection ETF.
The Innovator Equity Defined Protection ETF (AJAN) aims to track the return of the SPDR S&P 500 ETF Trust (SPY) to a capped level. It provides a 100% downside buffer over a two-year outcome period. AJAN is Innovator’s second Defined Protection ETF following the launch of the Innovator Equity Defined Protection ETF (TJUL) in July.
Innovator’s Defined Protection ETFs are structured without credit risk, while also providing investors with valuable tax efficiency. Innovator plans to launch a Defined Protection ETF every quarter over the next two years.
See more: “Innovator to List 4 Income-Focused Defined Outcome ETFs”
Six New Defined Income ETFs
Innovator also expanded its suite of Defined Income ETFs with six new funds. These ETFs are designed to provide a buffer against market losses while generating high income.
The full list of new ETFs, including AJAN, are below:
| New ETFs | |||||
| Ticker | Name | Ref. Asset | Downside Profile | Outcome Period |
Cap or Defined Dist. Rate* |
| AJAN | Equity Defined Protection | SPY | 100% Buffer | 24 months | 15.81% |
| HJAN | Premium Income 9 Buffer | SPY | 9% Buffer | 12 months | 7.38% |
| LJAN | Premium Income 15 Buffer | SPY | 15% Buffer | 12 months | 6.39% |
| JAND | Premium Income 10 Barrier | SPX | 10% Barrier | 12 months | 8.76% |
| JANH | Premium Income 20 Barrier | SPX | 20% Barrier | 12 months | 7.52% |
| JANJ | Premium Income 30 Barrier | SPX | 30% Barrier | 12 months | 6.40% |
| JANQ | Premium Income 40 Barrier | SPX | 40% Barrier | 12 months | 5.65% |
Innovator CIO Graham Day said these ETFs are a way “of locking in gains and putting a buffer in place.”
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.
Day added that “many of these strategies have historically been locked behind high-fee, tax-inefficient, and illiquid investment structures. So, he is “excited to continue building on” Innovator’s “disruptive approach” to these strategies in 2024.
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