Innovator Capital Management, LLC (Innovator) announced today that its January Series of Innovator S&P 500 Defined Outcome ETFs has begun trading on the Cboe. With market uncertainty fueled by concerns over a global economic slowdown and other fears permeating the minds of investors, these ETFs are worth a look to start the new year.
“The equity market is completely unpredictable, and no one really knows where the market will be a year from now; there are just too many variables,” said Bruce Bond, Chief Executive Officer of Innovator Capital Management. “Defined Outcome ETFs solve this issue by providing investors market exposure with downside buffers of 9%, 15%, or 30%. Today’s launch of the January Series adds three new S&P 500 Defined Outcome ETFs and expands our current suite to nine in total. Defined Outcome ETFs are delivering outcome based investing in a way that is more accessible, liquid, transparent, and cost-effective than ever before, and without corporate credit exposure.”
“Volatility is back and traditional asset management techniques might be at risk,” said John Southard, chief investment officer at Innovator Capital Management. “After years of abnormally low rates, investors are now facing a rising interest rate environment. If rates continue to move higher, bonds may not provide the portfolio cushion they did for investors in 2008 joining other asset classes that became highly correlated. Through the volatile year of 2018, the benchmark Cboe S&P 500 Buffer Protect January Index Series upon which our latest Defined Outcome ETFs are based has demonstrated outperformance compared to the S&P 500 Price Return Index with about half the volatility.”2
Innovator S&P 500 Defined Outcome ETFs seek to provide investors’ exposure to the S&P 500 Price Return Index (S&P 500) to a Cap, with downside buffer levels of 9%, 15%, or 30% over an Outcome Period of approximately one year. The ETFs reset annually and can be held indefinitely.
Return profiles for January 2019 Series – Innovator Defined Outcome ETFs, as of 1/02/19
|Ticker||Name||Buffer Level||Cap *||Outcome Period|
|BJAN||Innovator S&P 500 Buffer ETF||9.00%||22.30% (gross) 21.51% (net of management fee)||12 months 1/01/19 – 12/31/19|
|PJAN||Innovator S&P 500 Power Buffer ETF||15.00%||13.90% (gross) 13.11% (net of management fee)||12 months 1/01/19 – 12/31/19|
|UJAN||Innovator S&P 500 Ultra Buffer ETF||30.00% (-5% to -35%)||12.00% (gross) 11.21% (net of management fee)||12 months 1/01/19 – 12/31/19|
* The Caps above are shown gross and net of the 0.79% management fee. “Cap” refers to the maximum potential return, before fees and expenses and any shareholder transaction fees and any extraordinary expenses, if held over the full Outcome Period. “Buffer” refers to the amount of downside protection the fund seeks to provide, before fees and expenses, over the full Outcome Period. Outcome Period is the intended length of time over which the defined outcomes are sought.