Innovator ETFs has launched the Innovator International Developed Power Buffer ETF – November (NYSE Arca: INOV). The fund is part of Innovator’s lineup of Defined Outcome ETFs.
INOV seeks to track the return of the iShares MSCI EAFE ETF up to a predetermined cap. It does this while buffering investors against the first 15% of losses over the outcome period. The ETF can be held indefinitely, resetting at the end of each outcome period, approximately annually.
The outcomes that INOV seeks to provide may only be realized if investors are holding shares on the first day of the outcome period and continue to hold them on the last day of the outcome period, approximately one year. There is no guarantee that the outcomes for an outcome period will be realized.
INOV has an expense ratio of 0.85%.
Enjoying Market Gains While Buffering Against Loss
Innovator Defined Outcome ETFs let investors take advantage of market growth while maintaining defined levels of buffers against loss. They’re as tax efficient as traditional ETFs due to a recent rule change allowing the in-kind trading of options.
Innovator launched in September the Innovator International Developed Power Buffer ETF – September (ISEP). ISEP seeks to track the return of the iShares MSCI EAFE ETF up to a predetermined cap while buffering investors against the first 15% of losses over the outcome period.
In addition, Innovator announced in March the listing of four income-focused Defined Outcome ETFs. The 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.
“Many advisors have been successfully using buffer ETFs to limit the downside,” said VettaFi’s head of research Todd Rosenbluth. “But these new ETFs will provide an income alternative to bond ETFs without credit or duration risk.”
For more news, information, and analysis, visit VettaFi | ETF Trends.