Today’s challenging market environment demands strategic solutions that can offer downside protection and capture upside potential. As such, Innovator Capital Management, LLC (Innovator) announced the expansion of the Innovator Nasdaq-100 Power Buffer ETF (NOCT) and the Innovator Russell 2000 Power Buffer ETF (KOCT), which have commenced trading on the Cboe.
“Based on advisor feedback, we are broadening our category creating Defined Outcome ETF™ suite today with Buffer ETFs™ based on the Nasdaq 100 and Russell 2000 Indexes,” said Bruce Bond, CEO of Innovator ETFs. “With equity markets near all-time highs, investors are looking for ways to remain invested but still have a measurable hedge in place to buffer downside risk. Innovator now offers a full range of Defined Outcome ETFs, based on key equity benchmarks around the world, providing advisors the tools to build globally diversified equity portfolios with built-in downside buffers against loss.”
Innovator Defined Outcome ETFs seek to provide a defined exposure to a broad market index (such as the S&P 500, MSCI EAFE, MSCI EM, Nasdaq 100, and Russell 2000) where the downside buffer level, upside growth potential to a Cap, and Outcome Period are all known, prior to investing. The ETFs reset annually and can be held indefinitely. Innovator Defined Outcome ETFs, with over $1.35 billion in AUM as of September 27, 2019, are among the fastest-growing new categories of ETFs in the market today.
Return profiles for the October Series of Innovator Nasdaq 100 and Russell 2000 Power Buffer ETFs, as of 10/1/19
| Ticker | Name | Buffer Level | Cap * | Outcome Period |
| NOCT | Innovator Nasdaq-100 Power Buffer ETF™ |
15.00% | 11.10% | 12 months 10/1/19 – 9/30/20 |
| KOCT | Innovator Russell 2000 Power Buffer ETF™ |
15.00% | 10.78% | 12 months 10/1/19 – 9/30/20 |
* The Caps above are shown gross and net of the Nasdaq 100 and Russell 2000 Buffer ETFs’ 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. Upon fund launch, the Caps can be found on a daily basis via www.innovatoretfs.com.
The Innovator Defined Outcome Suite of ETFs
Nasdaq 100:
Innovator Nasdaq-100 Power Buffer ETF™ (Cboe: NOCT): Designed to track the price return of the Nasdaq 100 Index (up to a predetermined Cap) while buffering investors against the first 15% of losses over the Outcome Period, before fees and expenses.
Russell 2000:
Innovator Russell 2000 Power Buffer ETF™ (Cboe: KOCT): Designed to track the price return of the Russell 2000 Index (up to a predetermined Cap) while buffering investors against the first 15% of losses over the Outcome Period, before fees and expenses.
S&P 500:
Innovator S&P 500 Buffer ETFs™ (Cboe: BAPR, BJUN, BJUL, BAUG, BSEP, BOCT, BJAN): Designed to track the price return of the S&P 500 (up to a predetermined Cap) while buffering investors against the first 9% of losses over the Outcome Period, before fees and expenses.
Innovator S&P 500 Power Buffer ETFs™ (Cboe: PAPR, PJUN, PJUL, PAUG, PSEP, POCT, PJAN): Designed to track the price return of the S&P 500 (up to a predetermined Cap) while buffering investors against the first 15% of losses over the Outcome Period, before fees and expenses.
Innovator S&P 500 Ultra Buffer ETFs™ (Cboe: UAPR, UJUN, UJUL, UAUG, USEP, UOCT, UJAN): Designed to track the price return of the S&P 500 (up to a predetermined Cap) while buffering investors against a decline of 30% of losses over the Outcome Period, from -5% to -35%, before fees and expenses. Investors are exposed to loss between 0% and 5% and over 35% over the Outcome Period, before fees and expenses.
MSCI Emerging Markets:
Innovator MSCI Emerging Markets Power Buffer ETF™ (NYSE: EJUL): Designed to track the price return of the MSCI Emerging Markets Index (up to a predetermined Cap) while buffering investors against the first 15% of losses over the Outcome Period, before fees and expenses.
MSCI EAFE:
Innovator MSCI EAFE Power Buffer ETF™ (NYSE: IJUL): Designed to track the price return of the MSCI EAFE Index (up to a predetermined Cap) while buffering investors against the first 15% of losses over the Outcome Period, before fees and expenses.