Buffer ETFs Debut For New Year

Buffer ETFs Debut For New Year

Innovator has rolled out four more defined outcome ETFs tracking domestic and international indexes.

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Reviewed by: Heather Bell
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Edited by: Heather Bell

Today Innovator ETFs kicked off the new year by rolling out four more actively managed defined outcome ETFs. The domestically focused Innovator Russell 2000 Power Buffer ETF — January (KJAN) and Innovator Nasdaq-100 Power Buffer ETF — January (NJAN) are tied to the Russell 2000 and Nasdaq-100 price indexes and offer downside protection of 15% for one year. The internationally focused Innovator MSCI EAFE Power Buffer ETF — January (IJAN) and Innovator MSCI Emerging Markets Power Buffer ETF — January (EJAN) are tied to the well-known MSCI EAFE and MSCI Emerging Markets price indexes and also have protection against declines of up to 15%.

The domestic ETFs have expense ratios of 0.79% and list on Cboe Global Markets, the parent company of ETF.com. Meanwhile, IJAN has an expense ratio of 0.85%, and EJAN has an expense ratio of 0.89%. Both of the international funds list on the NYSE Arca. 

The funds hold flexible exchange (FLEX) options tied to their reference indexes, with the objective of delivering their price returns. In addition to the 15% downside protection, KJAN investors will be able to see up to 8.98% upside before expenses, while NJAN investors can see up to 9.42% of upside before expenses. IJAN has an upside pre-expense cap of 10.08%, and EJAN has an upside pre-expense cap of 12.78%. The upside caps are reset on an annual basis based on the price of the underlying FLEX options.

These funds are a follow-up to the Innovator Nasdaq-100 Power Buffer ETF – October (NOCT), the Innovator Russell 2000 Power Buffer ETF – October (KOCT), the Innovator MSCI EAFE Power Buffer ETF - July (IJUL) and the Innovator MSCI Emerging Markets Power Buffer ETF - July (EJUL). In all, with these launches included, Innovator has 35 defined outcome ETFs tracking various indexes.

Contact Heather Bell at [email protected]

 

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.