How RIAs are Implementing the Only ETFs with Built-In Buffers – Innovator ETFs – 7.25.19
Summary:
Now On Demand.
With trade wars, rate uncertainty, and stocks at all-time highs, investors are looking for reliable downside buffers. Innovator offers the world’s only ETFs with built-in buffers on the S&P 500, MSCI Emerging Markets and MSCI EAFE Indexes and upside caps. These ETFs provide defined outcomes over one-year periods, are rebalanced annually, and can be held indefinitely.
Why Defined Outcome ETFsSM? For the first time in an ETF, access benchmark indexes with built-in downside buffers
Strategies on Implementing the ETFs: Hear from an RIA about how they are using the ETFs in their portfolios
Trading Defined Outcome ETFsSM: The substantial liquidity underlying the Defined Outcome ETFsSM and the benefit this offers to advisors
Sponsors of this webcast may contact registrants. This webcast is for financial professionals only.
Speakers:
Nate Blair Partner Palo Alto Wealth Advisors
Nate’s extensive investment management experience includes serving as a Director at Aetos Capital where he helped guide the investment strategy for the firm’s $10B of institutional assets.
Prior to Aetos, Nate worked in private equity, where he served in various roles, from board member to interim CFO, to help portfolio companies grow their business. He holds an MBA from Stanford University and a BA from Rice University.
Graham Day, CFA VP Innovator Capital Management
Graham joined Innovator Capital Management in 2017 and is vice president of product & research, responsible for product development, capital markets and research efforts. Prior to joining Innovator, Graham was SVP – head of product & research at Elkhorn Investments and a Senior Strategist at Invesco PowerShares. He has been quoted in CNBC.com, TheStreet.com, FA magazine, FOX Business and Investopedia.com. Graham is a CFA charterholder, a member of the CFA Society of Chicago and holds a bachelor’s degree from Wheaton College.
Bruce Bond Founder & CEO Innovator Capital Management
Bruce is co-founder and CEO of Innovator Capital Management. Having co-founded Power Shares Capital Management in 2003, he is recognized as one of the pioneers of the ETF industry. His leadership, creativity and entrepreneurial vision challenged the conventional thinking about ETFs and blazed a trail that made way for the massive growth of what is known today as smart or strategic beta. In addition to being recognized for best-in-class products, Bruce has been named the ETF industry’s most influential person on multiple occasions. He is a thought leader and has been quoted in financial publications around the globe.
Overview:
Title: How RIAs are Implementing the Only ETFs with Built-In Buffers
Investing involves risks. 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, FLEX Option counterparty risk, cyber security risk, fluctuation of net asset value risk, investment objective risk, limitations of intraday indicative value risk, liquidity risk, management risk, market maker risk, market risk, non-diversification risk, operation risk, options risk, Outcome Period risk, tax risk, trading issues risk, upside participation risk and valuation risk. Unlike mutual funds, the Funds may trade at a premium or discount to their net asset value. ETFs are bought and sold at market price and not individually redeemed from the Fund. Brokerage commissions will reduce returns.
The outcomes that a Fund seeks to provide may only be realized if you are holding shares on the first day of the Outcome Period and continue to hold them on the last day of the Outcome Period, approximately one year. If you purchase shares after the Outcome Period has begun or sell shares prior to the Outcome Period’s conclusion, you may experience very different investment returns from those that a Fund seeks to provide.
These Funds are designed to provide point-to-point exposure to the price return of the S&P 500 via a basket of FLEX Options. As a result, the ETFs are not expected to move directly in line with the S&P 500 during the interim period.
FLEX Options Risk. The Fund will utilize FLEX Options issued and guaranteed for settlement by the Options Clearing Corporation (OCC). FLEX options, are non-standard options that allow both the writer and purchaser to negotiate various terms. Terms that are negotiable include the exercise style, strike price, expiration date, as well as other feature. The Fund bears the risk that the OCC will be unable or unwilling to perform its obligations under the FLEX Options contracts. 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 certain other securities such as standardized options. In 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.
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 Funds’ website, innovatoretfs.com, provides important Fund information as well information relating to the potential outcomes of an investment in a Fund on a daily basis.
The Funds only seek to provide shareholders that hold shares for the entire Outcome Period with their respective buffer level against S&P 500 Price Index losses during the Outcome Period. You will bear all S&P 500 Price Index losses exceeding 9%, 15%, and 30%, respectively. Depending upon market conditions at the time of purchase, a shareholder that purchases shares after the Outcome Period has begun may also lose their entire investment. For instance, if the Outcome Period has begun and the Fund has decreased in value beyond the pre-determined 9% buffer, an investor purchasing shares at that price may not benefit from the buffer. Similarly, if the Outcome Period has begun and the Fund has increased in value, an investor purchasing shares at that price may not benefit from the buffer until the Fund’s value has decreased to its value at the commencement of the Outcome Period.
Each Fund’s investment objectives, risks, charges and expenses should be considered before investing. The prospectus contains this and other important information, and may be obtained at www.innovatoretfs.com or 800.208.5212. Read it carefully before investing.
Innovator ETFs are distributed by Foreside Fund Services, LLC.
