Innovator Debuts 6 ETFs, Resets 12

Today, Innovator added a range of funds to its lineup of defined outcome ETFs. The new additions include two funds targeting international markets and four “Accelerated” domestically focused ETFs, which provide leveraged upside exposure but unleveraged downside exposure. The two international ETFs list on the NYSE Arca, and the Accelerated ETFs list on Cboe Global Markets.

All of the funds rely on flexible exchange (FLEX) options on their reference assets to deliver their stated goals.

Another dozen ETFs across the Innovator lineup of buffered ETFs reset their caps and buffers today.

International Power Buffer ETFs

The Innovator Emerging Markets Power Buffer ETF - October (EOCT) and the Innovator International Developed Power Buffer ETF – October (IOCT) complete the lineup of international “Power Buffer” ETFs such that now each quarter features a pair of resetting ETFs. While EOCT’s performance is tied to that of the iShares MSCI Emerging Markets ETF (EEM), IOCT essentially tracks the performance of the iShares MSCI EAFE ETF (EFA).

Both funds provide exposure to the upside performance of their reference assets and protect against the first 15% of downside performance.  

EOCT’s upside cap is set at 13.89% for the one-year period before expenses, while IOCT’s upside cap is set at 9.99%. The former ETF comes with an expense ratio of 0.89%, and the latter charges 0.85%.

Accelerated ETFs

The new additions to the “Accelerated” ETF lineup all come with expense ratios of 0.79%. The funds and their tickers are as follows:

• Innovator U.S. Equity Accelerated 9 Buffer ETF – October (XBOC)
• Innovator U.S. Equity Accelerated ETF – October (XDOC)
• Innovator U.S. Equity Accelerated Plus ETF – October (XTOC)
• Innovator Growth Accelerated Plus ETF – October (QTOC)

XBOC seeks to provide twice the performance of the SPDR S&P 500 ETF Trust (SPY) up to a cap of 10.98% before expenses while protecting against the first 9% of downside losses. The twist with this fund is that it only provides exposure to the downside performance on an unleveraged basis. This means that if SPY experiences a 1% increase, XBOC should deliver approximately a 2% return, but if SPY experiences a 1% decrease, XBOC also falls 1%.

Similarly, XDOC provides double the upside return of SPY up to a cap of 17.28% and unleveraged exposure to SPY’s downside performance. XTOC offers triple the upside return of SPY up to a cap of 16.47%. Unlike XBOC, neither fund has a downside buffer

QTOC aims to offer triple the upside return of the PowerShares QQQ Trust (QQQ) up to a cap of 19.80% before expenses.

Contact Heather Bell at [email protected]