In July 2025, Innovator ETFs launched the world’s first Dual Directional Buffer ETFs™, which reached $140 million in assets in just a few weeks.
In a traditional buffer ETF, investors receive a capped, positive return when the underlying stock market index rises, while being protected from losses until the downside buffer level is reached. While the traditional buffer ETF has a zero return when the stock market declines by less than the buffer, the dual-directional buffer ETF earns a positive return during small market declines. For example, the return on a 10% buffer ETF will be zero if the stock market index has declined by less than 10% at the maturity date. In contrast, a 10% dual-directional buffer ETF will have a positive 9% return if the stock market index declines 9% at maturity. Investors are responsible for losses exceeding the buffer, with a 15% loss on a 10% buffered product when the underlying market declines by 25%.
Buffers with lesser downside protection typically offer higher capped returns. Over a 12-month outcome period, a 10% dual-directional buffer has the potential to earn a return of 12% or more in a strong equity market, while a 15% dual-directional buffer may have returns capped at over 8%.
WEBCAST – Making Money in Positive and Negative Markets: September Dual Directional Buffer ETFs
On September 2nd, Innovator will expand upon the World’s 1st Dual Directional Buffer ETFs™ with the launch of:
- DDFS – Equity Dual Directional 15 Buffer ETF™– September
- DDTS – Equity Dual Directional 10 Buffer ETF™– September
Join Innovator ETFs® for a timely conversation on navigating volatility, unlocking unique return profiles, and positioning portfolios for today’s risks.
In this webcast, we’ll discuss:
- What rising deficits, tariffs, and global tensions mean for markets
- How Dual Directional Buffer ETFs™ can deliver upside—even when markets don’t
- Ways to incorporate these new investment strategies into client portfolios today
Accepted for 1 CFP® / IWI / CFA CE Credit