Bruce Bond, Co-Founder & CEO, Innovator Capital joined Julie Cooling, Founder & CEO, RIA Channel discuss how advisors can deliver downside protection while staying invested with defined outcome products.
Bond, an industry veteran and ETF pioneer, has a long history of moving the needle forward in the ETF space. PowerShares, cofounded by Bond in 2003, was the first shop to bring smart beta products to the ETF marketplace and later went on to be acquired by Invesco. “We love ETFs and we believe any investment process that we can fit into an ETF delivers more value to investors and advisors at the end of day,” says Bond.
When Innovator Capital launched roughly five years ago, it introduced a new kind of product to investors. The Defined Outcome ETFs™ series revolutionized how advisors constructed portfolios and offered a simplified way for advisors to protect client assets from a market drawdown, while still allowing them to participate in the upside. Since then, nearly $6B in assets have flowed into these suite of products. Innovator has continued to expand its suite of Defined Outcome ETFs to include buffered exposure to various parts of the equity and fixed income markets.
Innovator recently filed for the Hedged Tesla ETF (TSLH), its first risk-managed product on a single ticker, which aims to provide hedged exposure to Tesla using options and T-Bills. TSLH will look to help smooth the ride for TSLA investors that ultimately want to stay invested in TSLA, but want protection from Tesla’s notoriously volatile stock prices.
“Now is the time to get active, and reassess client portfolio construction,” says Bond on today’s unique market challenges. While recent market corrections have bounced back quickly due to low interest rates and support from the Fed, Bond predicts that the next market drawdown may not be propped back up by the same level of support. Bond encourages advisors to reimagine the 60/40 portfolio and make sure investors nearing or in retirement are well-protected in the event of a bear market.
Innovator Capital offers true risk management tools, designed to help solve advisor challenges and integrate risk control into portfolios at scale.
To learn more, register and watch Innovator’s webcast: Buffering Against Downturns — Made Easy.
Timing the market is tough, and market volatility makes it hard to be a long-term investor. Learn how the Innovator Buffer ETFs™ can help investors stay fully invested in the market, to a cap, with built-in buffers against equity downside. Now clients have the ability to mitigate the risk of buying high and selling low.