Innovator Capital Management, LLC (Innovator), creator and pioneer
of Buffer ETF™ investing, today announced the listing of a 1-year
100% Buffer ETF™ (ZAUG), as well as three other 15% Buffer ETFs.
ZAUG lists in the wake of strong demand for Innovator’s July
series of 100% Buffer ETFs™, having garnered more than a
quarter-billion dollars of inflows in their first month of
trading.
After launching the industry’s first 100% Buffer ETF™ in July
2023, ZAUG is Innovator’s seventh 100% Buffer ETF™ in a series that
is set to grow to more than 20 ETFs, spanning 6-month, 1-year, and
2-year outcome periods.
“A large part of the demand for these products has been from
investors looking to put sidelined cash to work as the stock market
hovers around all-time highs,” noted Innovator CEO Bruce Bond.
“With double the upside potential of money-market funds, built-in
100% downside protection, and capital-gains taxation, these ETFs
are a timely solution for investors who want to avoid losses, but
who want to pursue higher returns than money-market funds can
offer.”
Innovator also listed three 15% Buffer ETFs™ on the Nasdaq-100
ETF (QQQ), Russell 2000 ETF (IWM), and MSCI EAFE ETF (EFA).
“Many investors have little or no exposure to small-cap or
international stocks on account of the perceived higher risk,” said
Innovator CIO Graham Day. “Looking ahead at a potentially
advantageous rate environment for small-cap and international
stocks, our U.S. Small Cap Buffer ETFs™ and International Developed
Buffer ETFs™ offer a way for investors to initiate positions in
these market segments, with known levels of built-in risk
management.”
Innovator Buffer ETFs™ listed on August 1:
Ticker |
Name |
Reference Asset |
Buffer |
Upside Cap |
Outcome Period |
ZAUG |
Equity Defined Protection ETF - 1 Yr |
S&P 500 ETF |
100% |
8.82% |
1 Year |
NAUG |
Growth-100 Power Buffer ETF™ |
Nasdaq-100 ETF |
15% |
15.75% |
1 Year |
KAUG |
U.S. Small Cap Power Buffer ETF™ |
Russell 2000 ETF |
15% |
19.61% |
1 Year |
IAUG |
Intl Developed Power Buffer ETF™ |
MSCI EAFE ETF |
15% |
16.16% |
1 Year |
See the full list of Innovator ETFs listing and rebalancing on
August 1.
About Innovator
Innovator was established in 2017 by Bruce Bond and John
Southard, founders of the PowerShares ETF lineup that has grown to
be the fourth largest in the world. The listing of three Innovator
Buffer ETFs™ in August 2018 marked the creation of the world’s
first Defined Outcome ETFs™. Innovator is dedicated to providing
ETFs with built-in risk management that offer investors a high
level of predictability around their investment outcomes. Today,
with more than 100 offerings, Innovator is the industry’s leading
provider of Defined Outcome ETFs™.
The Funds have characteristics unlike many other
traditional investment products and may not be suitable for all
investors. For more information regarding whether an investment in
the Fund is right for you, please see "Investor Suitability" in the
prospectus.
The Funds face numerous market trading risks, including active
markets risk, authorized participation concentration risk, buffered
loss risk, cap change risk, capped upside return risk, correlation
risk, liquidity risk, management risk, market maker risk, market
risk, non-diversification risk, operation risk, options risk,
trading issues risk, upside participation risk and valuation risk.
For a detailed list of fund risks see the prospectus.
There is no guarantee the Funds will be successful in
providing the sought-after protection. If the Outcome Period has
begun and the Underlying ETF has increased in value, any
appreciation of the Fund by virtue of increases in the Underlying
ETF since the commencement of the Outcome Period will not be
protected by the Buffer, and an investor could experience losses
until the Underlying ETF returns to the original price at the
commencement of the Outcome Period.
Fund shareholders are subject to an upside return cap
(the "Cap") that represents the maximum percentage return an
investor can achieve from an investment in the funds' for the
Outcome Period, before fees and expenses. If the Outcome Period has
begun and the Fund has increased in value to a level near to the
Cap, an investor purchasing at that price has little or no ability
to achieve gains but remains vulnerable to downside risks.
Additionally, the Cap may rise or fall from one Outcome Period to
the next. The Cap, and the Fund's position relative to it, should
be considered before investing in the Fund. The Fund's website,
www.innovatoretfs.com, provides important Fund information as well
information relating to the potential outcomes of an investment in
a Fund on a daily basis.
Non-U.S. securities are subject to higher volatility than
securities of domestic issuers due to possible adverse political,
social or economic developments, restrictions on foreign investment
or exchange of securities, lack of liquidity, currency exchange
rates, excessive taxation, government seizure of assets, different
legal or accounting standards, and less government supervision and
regulation of securities exchanges in foreign countries.
Small cap companies may be more volatile and susceptible to
adverse developments than their mid and large cap counterpart. In
addition, the small cap companies may be less liquid than larger
companies.
These Funds are designed to provide point-to-point exposure to
the price return of the Reference Asset via a basket of Flex
Options. As a result, the ETFs are not expected to move directly in
line with the Reference Asset during the interim period.
Investors purchasing shares after an outcome period has begun
may experience very different results than fund's investment
objective. Initial outcome periods are approximately 6 months, 1
year and 2 years, beginning on each fund's inception date.
Following the initial outcome period, each subsequent outcome
period will begin on the first day of the month the fund was
incepted. After the conclusion of an outcome period, another will
begin.
FLEX Options Risk The Funds will utilize
FLEX Options issued and guaranteed for settlement by the Options
Clearing Corporation (OCC). In the unlikely event that the OCC
becomes insolvent or is otherwise unable to meet its settlement
obligations, the Funds could suffer significant losses.
Additionally, FLEX Options may be less liquid than standard
options. In a less liquid market for the FLEX Options, the Fund may
have difficulty closing out certain FLEX Options positions at
desired times and prices. The values of FLEX Options do not
increase or decrease at the same rate as the reference asset and
may vary due to factors other than the price of reference
asset.
Investing involves risk. Principal loss is possible. All rights
reserved. Innovator ETFs are distributed by Foreside Fund Services,
LLC.
The Funds’ investment objectives, risks, charges and expenses
should be considered carefully before investing. The prospectus and
summary prospectus contain this and other important information,
and it may be obtained at innovatoretfs.com. Read it carefully
before investing.
The following marks: Accelerated ETFs®, Accelerated Plus ETF®,
Accelerated Return ETFs®, Barrier ETF™, Buffer ETF™, Defined
Outcome Bond ETF®, Defined Outcome ETFs™, Defined Protection ETF™,
Define Your Future®, Enhanced ETF™, Floor ETF®, Innovator ETFs®,
Leading The Defined Outcome ETF Revolution™, Managed Buffer ETFs®,
Managed Outcome ETFs®, Step-Up™, Step-Up ETFs™, Target Protection
ETF™ and all related names, logos, product and service names,
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Management, LLC, its affiliates or licensors. Use of these terms is
strictly prohibited without proper written authorization.
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