Innovator Resets, Adds ETFs
Issuer resets caps on three original defined outcome ETFs, adds two for emerging markets and EAFE region.
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]
