Today, Innovator added another three “Stacker” ETFs to its lineup of defined outcome offerings. The Innovator Triple Stacker ETF – January (TSJA), the Innovator Double Stacker ETF – January (DSJA) and the Innovator Double Stacker 9 Buffer ETF – January (DBJA) all offer upside exposure to multiple ETFs but downside exposure to only one.
All three funds come with expense ratios of 0.79% and list on Cboe Global Markets, the parent company of ETF.com.
TSJA offers exposure to the upside price performance of ETFs tracking the S&P 500 Index, the Nasdaq-100 Index and the Russell 2000 Index up to certain caps over a 12-month outcome period. Before expenses, the fund allows upside participation in the performance of the SPDR S&P 500 ETF Trust (SPY), Invesco QQQ Trust (QQQ) and iShares Russell 2000 ETF (IWM) up to a cap of 6.10% for each underlying ETF, for a combined possible upside of 18.30%. The fund only has downside exposure to SPY, not QQQ or IWM.
Similarly, the “Double Stacker” DSJA only has downside exposure to SPY and can participate in the upside price performance of both SPY and QQQ up to a cap of 9.81% on each for a total combined cap of 19.62% upside. Meanwhile, DBJA has a 9% buffer against potential downside SPY performance but can participate in the upside of SPY and QQQ up to a cap of 6.20% for each ETF, or a combined cap of 12.40%.
“The Stacker ETFs seek to provide advisors with diversified exposure across the U.S. stock markets and can magnify investors’ performance potential without increasing risk beyond exposure to the S&P 500, the benchmark many clients are most comfortable with,” said Innovator CEO Bruce Bond when the first series of Stacker ETFs launched on Oct. 1, 2020.
All three of the new ETFs invest in flexible exchange (FLEX) options on their underlying ETFs to achieve their targeted outcomes. The funds reset annually on the last trading day of each year.
Although these are only the second set of Stacker ETFs, they join a family of 54 defined outcome ETFs with roughly $3.5 billion in assets under management.
Contact Heather Bell at [email protected]