Innovator ETFs Announces New Upside Cap Ranges for June


Chicago, IL, May 24, 2021 (GLOBE NEWSWIRE) — Innovator Capital Management, LLC (Innovator) today announced the anticipated upside cap ranges and return profiles for the June series of the S&P 500 Buffer ETFs™ – Innovator S&P 500 Buffer ETF™ – June (BJUN), Innovator S&P 500 Power Buffer ETF™ – June (PJUN) and Innovator S&P 500 Ultra Buffer ETF™ – June (UJUN) – which are scheduled to complete their second outcome period and reset at the end of the month. The 36 total ETFs in the flagship S&P 500 Buffer ETF lineup seek to provide investors with upside participation, to a cap, in Large-cap U.S. stocks via options on the S&P 500 with buffers against market losses of 9%, 15% or 30% over one year periods.

Anticipated return profiles for the Innovator S&P 500 Buffer ETFs – June Series, as of 5/20/2021

Ticker Name Buffer Level Est. Cap Range* Outcome Period
BJUN Innovator S&P 500
Buffer ETF™ – June
9.00% 12.82 – 14.87% 12 months
6/01/21 – 5/31/22
PJUN Innovator S&P 500
Power Buffer ETF™ – June
15.00% 7.94 – 9.29% 12 months
6/01/21 – 5/31/22
UJUN Innovator S&P 500
Ultra Buffer ETF™ – June
30.00%
(-5% to -35%)
6.42 – 6.84% 12 months
6/01/21 – 5/31/22

* The Estimated Cap Ranges above are based on the highest and lowest Cap as illustrated by the Funds’ strategy from 4/22/2021-5/20/2021 and are shown gross of the 0.79% management fee. The actual Cap for each Fund will be set at the beginning of the Outcome Period, and is dependent upon market conditions at that time. Periods of high market volatility could result in higher caps, and lower volatility could result in lower caps. As a result, the Cap set by each Fund may be higher or lower than the Estimated Cap Range. “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 commencement of the Outcome Period, the Caps can be found on a daily basis via www.innovatoretfs.com.

The June series of Innovator S&P 500 Buffer ETFs™ (BJUN; PJUN; UJUN) currently have a remaining outcome period of one week. Investors who purchase prior to the rebalance will be fully invested for the next outcome period, obtaining new upside caps and downside buffers for the year commencing June 1, 2021. The ETFs reset annually and can be held indefinitely. For additional information, visit the Innovator Defined Outcome ETF Pricing Tool.

Innovator Defined Outcome ETFs – Benefits to Advisors

  • Pioneer and creator of Defined Outcome ETFs™ with 65 ETFs and over $4.4 billion AUM across family1
  • Tax-efficient exposure[2] to five broad equity benchmarks (S&P 500, NASDAQ-100, Russell 2000, MSCI EAFE, MSCI EM), the 20+ Year U.S. Treasury Market and now including the Stacker ETFs, the world’s first ETFs to offer a “stacked” exposure to two or three benchmark equity index ETFs on the upside, to a cap, with downside exposure to the S&P 500 only, and the Accelerated ETFs™, the world’s first ETFs to seek to offer a multiple of the upside return of a reference asset, up to a cap, with approximately single exposure on the downside.
  • Monthly issuance on the S&P 500 with three buffer levels (9,15, or 30%)

Innovator’s Defined Outcome ETFs™ are the subject of a patent application filed with the U.S. Patent and Trademark Office.

In 2021, starting with the January series, Innovator will be transitioning reference assets of the underlying options within its Defined Outcome Equity Buffer ETFs™ to achieve the stated outcomes with ETF-based, or fund-based, options rather than index-based options. Innovator’s Equity Buffer ETFs™ have traditionally used index-based options while the Defined Outcome Bond ETFs and Stacker ETFs™ have been constructed using fund-based options. This change is intended to streamline market making and increase the operational efficiencies of the tax-efficient Buffer ETFs™ and will not materially impact shareholders. The Buffer ETFs™ will continue to draw from the same deeply liquid options markets pools that underpin the strategies, the level of the upside caps achieved should be unaffected and no tax event will be triggered given the options can be transferred in-kind. “These operational changes are intended to harness the power and efficiencies of the ETF wrapper even further for the benefit of our Defined Outcome Buffer ETF™ investors,” stated Bruce Bond, CEO of Innovator ETFs.

 

The Funds have characteristics unlike many other traditional investment products and may not be suitable for all investors. For more information regarding whether an investment in the Fund is right for you, please see “Investor Suitability” in the prospectus.

About Innovator Defined Outcome ETFs

Defined Outcome ETFs™ are the world’s first ETFs that seek to provide investors with known ranges of future investment outcomes prior to investing. These outcome ranges include multiple and single upside exposure, to a cap, with defined levels of downside risk with buffers and floors over a set amount of time. The Innovator Defined Outcome ETFs™ cover a large spectrum of domestic and international equities and bonds. Innovator’s category-creating Defined Outcome ETF™ family includes Buffer ETFs™, Stacker ETFs™, Floor ETFs™ and Accelerated ETFs™. 

The Buffer ETFs™ seek to provide the upside performance of broadly recognized benchmarks (e.g., S&P 500, NASDAQ-100, Russell 2000, MSCI EAFE, and MSCI Emerging Markets, as well as the iShares 20+ Year Treasury Bond ETF (TLT)) to a cap, with built-in buffers, over an outcome period of one year. The ETFs reset annually and can be held indefinitely.

Each Buffer ETF™ in Innovator’s Defined Outcome ETF™ suite seeks to provide a defined exposure to a broad market benchmark where the downside buffer level, upside growth potential to a cap, and Outcome Period are all known, prior to investing. In 2019, Innovator began expanding its suite of S&P 500 Buffer ETFs™ into a monthly series to provide investors more opportunities to purchase shares as close to the beginning of their respective Outcome Periods as possible.

Investors can purchase shares of a previously listed Defined Outcome ETF™ throughout the entire Outcome Period, obtaining a current set of defined outcome parameters, which are disclosed daily through a web tool available at: http://innovatoretfs.com/define.

Innovator is focused on delivering defined outcome-based solutions inside the benefit-rich ETF wrapper, retaining many of the features that have contributed to the success of structured products3 (e.g., downside buffer levels, upside participation, defined outcome parameters), but with the added benefits of transparency, liquidity, the elimination of credit risk[4] and lower costs afforded by the ETF structure.

About Innovator Capital Management, LLC

Awarded ETF.com’s “ETF Issuer of the Year – 2019”, Innovator Capital Management LLC (Innovator) is an SEC-registered investment advisor (RIA) based in Wheaton, IL. Formed in 2014, the firm is currently headed by ETF visionaries Bruce Bond and John Southard, founders of one of the largest ETF providers in the world. Bond and Southard reentered the asset management industry to bring to market first-of-their-kind investment opportunities, including the Defined Outcome ETFs™, products that they felt would change the investing landscape and bring more certainty to the financial planning process. Innovator’s category-creating Defined Outcome ETF™ family includes Buffer ETFs™, Floor ETFs, Stacker ETFs™ and the Accelerated ETFs™, the world’s first ETFs to seek to offer a multiple of the upside return of a reference asset, up to a cap, with approximately single exposure on the downside. Buffer ETFs™ and Floor ETFs™ seek to provide investors structured exposures to broad markets, where the upside growth potential, buffer or floor against the downside, and outcome period are all known, prior to investing. Stacker ETFs are the world’s first ETFs to offer a multiple or “stacked” exposure to two or three benchmark index ETFs (SPY, QQQ, IWM) to a cap, with only downside exposure to the SPY over a one year outcome period. Accelerated ETFs™ are the world’s first ETFs to seek to offer a multiple of the upside return of a reference asset, up to a cap, with approximately single exposure on the downside over an outcome period. Having launched the first Defined Outcome ETFs™ in 2018 — the flagship Innovator S&P 500 Buffer ETF™ Suite – Innovator’s solutions allow advisors to construct diversified portfolios with known outcome ranges to aid in risk management and financial planning. Built on a foundation of innovation and driven by a commitment to help investors better control their financial outcomes, Innovator is leading the Defined Outcome ETF Revolution™. For additional information, visit www.innovatoretfs.com.

About Cboe Global Markets, Inc.

Cboe Global Markets (Cboe: CBOE) is one of the world’s largest exchange-holding companies, offering cutting-edge trading and investment solutions to investors around the world. For more information, visit www.cboe.com.

About Milliman Financial Risk Management LLC

Milliman Financial Risk Management LLC (Milliman FRM) is a global leader in financial risk management to the retirement industry, providing investment advisory, hedging, and consulting services on over $143 billion in global assets as of June 30, 2020. Milliman FRM is one of the largest and fastest-growing subadvisors of ETFs. For more information about Milliman FRM, visit www.Milliman.com/FRM.

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