Innovator Resets, Adds ETFs

Today Innovator ETFs reset the caps on its three original defined outcome ETFs, which launched about a year ago. It also launched a pair of ETFs that use a similar methodology but offer exposure to two major international indexes.

Resetting Caps

About a year ago, Innovator rolled out its first trio of defined outcome ETFs tied to the price return of the S&P 500 Index. The new caps and the static buffers will remain in effect through June 30, 2020, and are as follows:

• The Innovator S&P 500 Buffer ETF - July (BJUL), which protects against the first 9% of losses, has an upside cap of 14.00% before expenses and 13.21% after expenses
• The Innovator S&P 500 Power Buffer ETF - July (PJUL), which protects against the first 15% of losses, has an upside cap of 8.88% before expenses and 8.09% after expenses
• The Innovator S&P 500 Ultra Buffer ETF - July (UJUL), which protects against losses greater than 5% but less than 35%, has an upside cap of 8.45% before expenses and 7.66% after expenses

While during the inaugural year the issuer had launched three funds every three months, intending to cover each quarter, Innovator has since begun to roll out a set of funds for each month so that investors can roll more frequently between months to lock in gains and start with fresh buffers as often as they want.

Emerging & Developed Markets
In addition to the reset, Innovator rolled out a pair of funds offering defined outcomes tied to the MSCI Emerging Markets Index and the MSCI EAFE Index. The Innovator MSCI Emerging Markets Power Buffer ETF — July (EJUL) and the Innovator MSCI EAFE Power Buffer ETF – July (IJUL) both list on the NYSE Arca, while the other U.S.-focused ETFs in the family list on Cboe Global Markets, parent company of ETF.com.

EJUL carries an expense ratio of 0.89%, while IJUL comes with an expense ratio of 0.85%.

Both funds protect their investors from the first 15% of losses, assuming the funds are bought at the start of their 12-month term. However, while EJUL caps its upside at 9.36% before expenses and 8.47% after expenses, IJUL caps its pre-expense upside at 10.21% and its after-expense upside at 9.36%.

While the caps to the new funds will be reset in a year’s time, it is not clear whether Innovator will start with a monthly launch schedule or adhere to its original quarterly timeline.

Contact Heather Bell at [email protected]