Innovator Capital Management announced the anticipated upside cap ranges and return profiles for the 14 ETFs in the October series of the sponsors’ Defined Outcome ETFs™ lineup, as well as the five quarterly resetting ETFs that will also rebalance at the end of the month. It is no secret that both stocks and bonds have had a trying year, which is just the kind of market that Defined Outcome ETFs are built for. By sacrificing some upside, these products limit downside risk, making them especially useful tools in times of high volatility.
The resetting ETFs span Innovator’s Defined Outcome ETF™ suite, including Buffer ETFs™, Accelerated ETFs™, and Floor ETFs™. With resets across 19 ETFs in total, the October rebalance will be the Defined Outcome ETF™ leader’s largest to date.
Innovator’s Buffered ETFs have seen increased advisor demand amid the difficult market conditions of 2022. Flows are up $3.4 billion YTD into Innovator’s Defined Outcome ETF lineup through Friday, 9-23-22. This makes Innovator one of the fastest growing sub-$10B AUM asset managers this year. As recession fears and market volatility to continue to be top of mind, Defined Outcome ETFs could become an even more sought-after investment tool.
| Ticker | Name | Reference Asset(s) | Buffer Level | Cap Range* | Outcome Period |
|---|---|---|---|---|---|
| (NOCT ) | Innovator Growth-100Power Buffer ETF™ -October | QQQ | 15.00% | 19.33 – 22.96% | 12 months10/01/22 – 9/30/23 |
| (KOCT ) | Innovator U.S. SmallCapPower Buffer ETF™ -October | IWM | 15.00% | 19.40 – 22.41% | 12 months10/01/22 – 9/30/23 |
| (IOCT ) | InnovatorInternationalDevelopedPower Buffer ETF™ -October | EFA | 15.00% | 19.35 – 23.80% | 12 months10/01/22 – 9/30/23 |
| (EOCT ) | Innovator EmergingMarketsPower Buffer ETF™ -October | EEM | 15.00% | 13.79 – 21.79% | 12 months10/01/22 – 9/30/23 |
| (BOCT ) | Innovator U.S. EquityBuffer ETF™ -October | SPY | 9.00% | 21.85 – 27.50% | 12 months10/01/22 – 9/30/23 |
| (POCT ) | Innovator U.S. EquityPower Buffer ETF™ – October | SPY | 15.00% | 15.80 – 19.06% | 12 months10/01/22 – 9/30/23 |
| (UOCT ) | Innovator U.S. EquityUltra Buffer ETF™ -October | SPY | 30.00%(-5% to -35%) | 12.96 – 16.35% | 12 months10/01/22 – 9/30/23 |
| (DSOC ) | Innovator DoubleStacker ETF™ -October | SPY, QQQ | NA | SPY Upside CapRange: 10.97 –12.99%QQQ Upside CapRange: 10.97 –12.99%Total Upside CapRange: 21.93 –25.98% | 12 months10/01/22 – 9/30/23 |
| (DBOC ) | Innovator DoubleStacker 9 BufferETF™ – October | SPY, QQQ | 9.00% | SPY Upside CapRange: 7.76 –9.09%QQQ Upside CapRange: 7.76 –9.09%Total Upside Cap Range: 15.51 – 18.18% | 12 months10/01/22 – 9/30/23 |
| (TSOC ) | Innovator TripleStacker ETF™ -October | SPY, QQQ,IWM | NA | SPY Upside CapRange: 6.58 –7.88%QQQ Upside CapRange: 5.36 –6.00%IWM Upside CapRange: 5.36 –6.00%Total Upside Cap Range:19.78 – 23.64% | 12 months10/01/22 – 9/30/23 |
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- The Cap Ranges above are based on the highest and lowest Cap as illustrated by the Funds’ strategy from 8/24/22-9/22/22 and are shown gross of each fund’s management fee (.79% for all funds in the table above, except for IOCT (.85%) and EOCT (.89%)). The actual 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 caps, and lower volatility could result in lower caps. As a result, the Cap set by each Fund may be higher or lower than the Cap Range. “Cap” refers to the maximum potential return, before fees and expenses and any shareholder transaction fees and any extraordinary expenses, if held over the full Outcome Period. “Buffer” refers to the amount of downside protection the fund seeks to provide, before fees and expenses, over the full Outcome Period. Outcome Period is the intended length of time over which the defined outcomes are sought. Upon fund launch, the Caps can be found on a daily basis via www.innovatoretfs.com
The average upside caps of the October series of the Innovator Accelerated ETFs™, as of 9/22/2022, are as follows in the table below:
| Ticker | ReferenceAsset | Upside toCap | Downside | AverageCap** | Outcome Period |
|---|---|---|---|---|---|
| (XDOC ) | SPY | 2X | 1X | 25.25% | Annual10/01/22 – 9/30/23 |
| (XBOC ) | SPY | 2X | 1X, 9%Buffer | 17.69% | Annual10/01/22 – 9/30/23 |
| (XTOC ) | SPY | 3X | 1X | 22.70% | Annual10/01/22 – 9/30/23 |
| (QTOC ) | QQQ | 3X | 1X | 25.74% | Annual10/01/22 – 9/30/23 |
- The Average Cap listed above represents an average of estimated caps, as illustrated by the fund’s strategy, based upon 10 previous trading days, from 9/09/2022 to 9/22/2022, and are shown gross of the 0.79% management fee. It does not represent the actual cap that will be set at the beginning of the Outcome Period, which will be dependent upon market conditions at that time. Periods of high market volatility could result in higher caps, and lower volatility could result in lower caps. As a result, the Cap set by each Fund may be higher or lower than the Average Cap displayed above. The Cap Ranges based on the highest and lowest Cap as illustrated by the Funds’ strategy from 8/24/22-9/22/22 (gross of the 0.79% management fee) are as follows: 22.00% to 26.34% for XDOC; 15.60% to 18.52% for XBOC; 19.90% to 23.71% for XTOC; and 23.04% to 26.89% for QTOC. “Cap” refers to the maximum potential return, before fees and expenses and any shareholder transaction fees and any extraordinary expenses, if held over the full Outcome Period. “Buffer” refers to the amount of downside protection the fund seeks to provide, before fees and expenses, over the full Outcome Period. Outcome Period is the intended length of time over which the defined outcomes are sought. Upon fund launch, the Caps can be found on a daily basis via www.innovatoretfs.com. Investors who purchase shares after the start of an outcome period may be exposed to enhanced risk.
Anticipated return profiles for the Defined Outcome ETFs™ – Quarterly resetting series, as of 9/22/22
| Ticker | Name | ReferenceAsset | Buffer orFloor Level | Cap Range**** | Outcome Period | |
|---|---|---|---|---|---|---|
| (BALT ) | Innovator DefinedWealth Shield ETF | SPY | **20.00%Buffer | 2.06 – 2.76% | Quarterly; 3 months10/01/22 – 12/31/22 | |
| (TFJL ) | Innovator 20+ YearTreasury Bond 5FloorETF™ | TLT | 5.00%Floor*** | 4.94 – 7.39% | Quarterly; 3 months10/01/22 – 12/31/22 | |
| (TSLH ) | Innovator HedgedTSLA Strategy ETF | TSLA | 10% Floor | 9.86 – 11.13% | Quarterly; 3 months10/01/22 – 12/31/22 |
- Although BALT targets a 20% buffer, the buffer may fall into a range of 15% to 20%; there is no guarantee that the buffer will be within this range or that the Fund will provide the buffer. The Upside Cap above is shown gross of the .175% quarterly (0.69% annual) management fee for BALT. “Cap” refers to the maximum potential return, before fees and expenses and any shareholder transaction fees and any extraordinary expenses, if held over the full Outcome Period. “Buffer” refers to the amount of downside protection the fund seeks to provide, before fees and expenses, over the full Outcome Period. Outcome Period is the intended length of time over which the defined outcomes are sought. Upon commencement of the Outcome Period, the remaining Cap and/or Buffer can be found on a daily basis via www.innovatoretfs.com
*Floor refers to the projected maximum amount of loss an investor can expect to incur prior to the downside protection the fund seeks to provide, before fees and expenses, over the full Outcome Period. The Floor is only operative against Underlying share price losses exceeding approximately 5% for TFJL and 10% for TSLH over the duration of the Outcome Period. There is no guarantee that the Fund will be successful in its attempt to provide the Floor. If an investor is considering purchasing Shares during the Outcome Period, and the Fund has already increased in value, then a shareholder may experience losses prior to gaining the protection offered by the Floor, which is not guaranteed.
**The Cap Ranges above are based on the highest and lowest Cap as illustrated by the Funds’ strategy from 8/24/22-9/22/22 and are shown gross of each fund’s management fee (.175% quarterly and .69% annual for BALT; .2% quarterly and .79% annually for TFJL and TSLH). The actual 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 caps, and lower volatility could result in lower caps. As a result, the Cap set by each Fund may be higher or lower than the Cap Range. “Cap” refers to the maximum potential return, before fees and expenses and any shareholder transaction fees and any extraordinary expenses, if held over the full Outcome Period. “Buffer” refers to the amount of downside protection the fund seeks to provide, before fees and expenses, over the full Outcome Period. Outcome Period is the intended length of time over which the defined outcomes are sought. Upon commencement of the Outcome Period, the remaining Cap and/or Buffer can be found on a daily basis via www.innovatoretfs.com .
| Ticker | Reference Asset | Upside to Cap | Downside | Average Cap**** | Outcome Period | Rebalancing | |
|---|---|---|---|---|---|---|---|
| (XDSQ ) | SPY | 2X | 1X | 10.85 | % | Quarterly | 10/01/22 |
| (XDQQ ) | QQQ | 2X | 1X | 12.84 | % | Quarterly | 10/01/22 |
- The Average Cap listed above represents an average of estimated caps, as illustrated by the fund’s strategy, based upon 10 previous trading days, from 9/09/2022 to 9/22/2022, and are shown gross of the 0.79% management fee. It does not represent the actual cap that will be set at the beginning of the Outcome Period, which will be dependent upon market conditions at that time. Periods of high market volatility could result in higher caps, and lower volatility could result in lower caps. As a result, the Cap set by each Fund may be higher or lower than the Average Cap displayed above. The Cap Ranges based on the lowest and highest Cap as illustrated by the Funds’ strategy from 8/24/22-9/22/22 (gross of the 0.79% management fee) are as follows: 8.97% to 11.94% for XDSQ; 10.88% to 13.87% for XDQQ. “Cap” refers to the maximum potential return, before fees and expenses and any shareholder transaction fees and any extraordinary expenses, if held over the full Outcome Period. “Buffer” refers to the amount of downside protection the fund seeks to provide, before fees and expenses, over the full Outcome Period. Outcome Period is the intended length of time over which the defined outcomes are sought. Upon fund launch, the Caps can be found on a daily basis via www.innovatoretfs.com. Investors who purchase shares after the start of an outcome period may be exposed to enhanced risk.
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