Graham Day, VP of Product Development & Research, Innovator Capital Management met with Julie Cooling, Founder & CEO, RIA Channel to discuss the firm’s Defined Outcome ETF series, and how advisors can leverage the buffered products during times of market uncertainly.
As the name suggests, Innovator ETFs, lead by Bruce Bond, seeks to bring innovation and disruption to the ETF landscape. Innovator, the self-proclaimed home of the defined outcome ETF, offers advisors low cost and tax efficient access to buffered products.
Amongst today’s market turbulence and unknown longterm economic impact of COVID-19, Innovator’s defined outcome products aim to keep clients invested, buffered from risk, and on track to meet their long-term goals.
Innovator recently released their May series of S&P Buffer ETFs:
- Innovator S&P 500 Buffer ETF – May (BMAY)
19.50% starting cap and 9% starting buffer. - Innovator S&P 500 Power Buffer ETF – May (PMAY)
13.52% starting cap and 15% starting buffer. - Innovator S&P 500 Ultra Buffer ETF – May (UMAY)
8.57% starting cap and 30% starting buffer.
Designed to produce annuity-like payouts in a more liquid structure, the family of ETFs track market returns, with a predefined downside buffer and an upside cap. Unlike structured notes, where the investor is exposed to the credit risk of the issuer, Innovator Defined Outcome ETFs allow the investor direct ownership of the option. The firm emphasizes advisor education around the products, how they work, and what factors need to be considered.