February Defined Outcome ETFs Debut

Innovator rolls out three S&P 500 "buffer" ETFs that reset every Feb. 1. 

Reviewed by: Heather Bell
Edited by: Heather Bell

Innovator ETFs today added to its lineup of defined outcome ETFs with another trio of funds that provide downside protection while limiting the upside investors can realize. The funds reset their buffers and adjust their upside caps on an annual basis.

The funds each charge an expense ratio of 0.79% and list on Cboe Global Markets, the parent company of ETF.com.

The funds are all actively managed but seek to replicate the performance of the S&P 500 Price Index using flexible exchange (FLEX) options on the index. The funds, their tickers and their buffers are as follows:

Innovator started out by launching three buffer ETFs for each quarter, but in 2019 began launching funds covering every month. With these latest launches, the lineup tied to the S&P 500 Price Index includes 38 funds with nearly $2 billion in assets under management. Investors should expect additional S&P 500-focused funds to launch for the months of March and May in 2020.

The issuer has also begun launching similar ETFs tied to international indexes and other domestic benchmarks.

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.