Innovator Capital Management, LLC (Innovator), pioneer and
provider of the largest lineup of Defined Outcome ETFs™, today
announced cap ranges on three new 100% Buffer ETFs™ set to launch
July 1st.
Each of the ETFs are designed to provide 100% downside
protection with a defined upside to the S&P 500 ETF over a
6-month, 1-year, or 2-year outcome period. Innovator, which
launched the industry’s first ever 100% Buffer ETF (TJUL) in July
of 2023, manages the industry’s largest 100% Buffer ETF™ suite.
100% Buffer ETFs Listing 7/1
Fund Name |
Ticker |
SEC Filing |
Cap Range1 |
Equity
Defined Protection ETF – 6mo Jan/Jul |
JAJL |
Filing |
4.82% to 5.08% |
Equity
Defined Protection ETF – 1 Yr July |
ZJUL |
Filing |
9.23% to 9.68% |
Equity
Defined Protection ETF – 2 Yr to July 2026 |
AJUL |
Filing |
18.01% to 19.29% |
Innovator’s Equity Defined Protection ETF™ – 6 mo Jan/Jul (JAJL)
will be the industry’s first ETF to offer investors 100% downside
protection over a 6-month outcome period. JAJL’s 6-month cap range
represents the potential to significantly outperform cash or
short-term bonds, without taking on downside risk. Its ability to
deliver tax-deferred growth offers a significant advantage over
cash or short-term bonds that get taxed at ordinary income
rates.
“Advisors are struggling to deal with client cash allocations
near 30%. Our 100% Buffer ETFs offer a strategy to get this cash
off the sidelines by offering 100% downside protection in the event
of a market downturn, and upside potential if the market rises.
These ETFs also may provide investors with significant tax
advantages compared to cash or bonds. Overall, we believe investors
are anxious about entering the market at all-time highs, but are
also missing out on the market’s persistent gains,” said Graham
Day, CIO at Innovator ETFs. “After launching TJUL, the industry’s
first 100% Buffer ETF™, we remain eager and enthusiastic about
expanding our lineup and extending our leadership in the
space.”
Beyond the three 100% Buffer ETFs listing on July 1, Innovator
has filed and intends to list another eight 100% Buffer ETFs™.
1. The estimated cap range is based on the 21 trading days prior
to June 14th and is shown gross of the fund's management fee. The
cap for each Fund will be set at the beginning of the Outcome
Period, and is dependent upon market conditions at that time.
Periods of high market volatility could result in higher values,
and lower volatility could result in lower values.
The Funds are designed to provide equity upside, to a cap, with
a 100% downside buffer against SPDR S&P 500 ETF losses, over a
six-month, one-year, or two-year outcome period, before fees and
expenses.
JAJL, ZJUL, AND AJUL ARE NOT YET AVAILABLE FOR
TRADING. CLICK THE LINK IN THE TABLE ABOVE FOR THE LATEST SEC
FILING. INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR
AMENDMENT. THE FUND HAS FILED A REGISTRATION STATEMENT WITH THE
SECURITIES AND EXCHANGE COMMISSION BUT IT IS NOT YET EFFECTIVE. AN
INVESTMENT IN THE FUND CANNOT BE MADE, NOR MONEY ACCEPTED, UNTIL
THE REGISTRATION STATEMENT IS EFFECTIVE. AN INVESTOR SHOULD
CONSIDER THE INVESTMENT OBJECTIVES, RISKS, AND CHARGES AND EXPENSES
OF THE FUND CAREFULLY BEFORE INVESTING. THE PRELIMINARY PROSPECTUS
CONTAINS THIS AND OTHER INFORMATION ABOUT THE FUND AND MUST PRECEDE
OR ACCOMPANY THIS COMMUNICATION. THE INFORMATION IN THE PRELIMINARY
PROSPECTUS IS NOT COMPLETE AND MAY BE CHANGED. THE FINAL PROSPECTUS
SHOULD BE READ CAREFULLY BEFORE INVESTING. THE FINAL PROSPECTUS,
WHEN AVAILABLE, MAY BE OBTAINED BY [CALLING [TELEPHONE
NUMBER]/VISITING [WEB ADDRESS]]. THIS COMMUNICATION IS NOT AN OFFER
TO SELL FUND SHARES AND IS NOT SOLICITING AN OFFER TO BUY FUND
SHARES IN ANY STATE WHERE THE OFFER OR SALE IS NOT PERMITTED.
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 Fund 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.
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.
FLEX Options Risk The Fund 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 Fund 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. Innovator
ETFs are distributed by Foreside Fund Services, LLC.
The Fund's 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,
designs, and slogans are the trademarks of Innovator Capital
Management, LLC, its affiliates or licensors. Use of these terms is
strictly prohibited without proper written authorization.
Copyright © 2024 Innovator Capital Management,
LLC | 800.208.5212 | View
our Privacy Policy and Terms of Use
Media ContactFrank Taylor / Stephanie
Dressler(646) 808-3647 / (949) 269-2535frank@dlpr.com /
stephanie@dlpr.com