Defined Outcome ETFs Launch, Reset

April 01, 2020

Today, Innovator ETFs rolled out another pair of additions to its lineup of defined outcome funds. The new products, the Innovator Nasdaq-100 Power Buffer ETF — April (NAPR) and the Innovator Russell 2000 Power Buffer ETF — April (KAPR), reflect the price performance of the Nasdaq-100 Index and the Russell 2000 Index, respectively

Both funds come with an expense ratio of 0.79% and list on Cboe Global Markets, the parent company of ETF.com.

For the next year, KAPR and NAPR will protect against losses of 15% but cap upside performance at 17.95% and 15.06%, respectively. Those buffer and cap levels do not include expenses, and the caps will reset on or around April 1, 2021, while the buffers are static.

The funds are actively managed and primarily hold flexible exchange (FLEX) options on their reference indexes. The addition of the two ETFs brings the total number of defined outcome products in Innovator’s lineup to 43. 

Resets

Three of Innovator’s existing defined outcome ETFs have undergone their annual resets. The affected funds include the Innovator S&P 500 Buffer ETF – April (BAPR), Innovator S&P 500 Power Buffer ETF - April (PAPR) and Innovator S&P 500 Ultra Buffer ETF – April (UAPR).

As of today, BAPR protects against a loss of 9% in the index but allows for 22% of upside performance. Meanwhile, PAPR protects against a 15% loss but allows for 15.40% of upside performance. UAPR protects against losses greater than 5% up to 35% but caps upside performance at 9.80%.

Contact Heather Bell at [email protected]

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