Innovator’s Bond On Defined Outcome ETFs

Bruce Bond, CEO, Innovator Capital Management met with Julie Cooling, Founder & CEO, RIA Channel to discuss his lineup of Defined Outcome ETFs. Bond, well known in the industry for his innovation, has launched several strategies over the last few years. Innovator’s IBD series, a set of products designed around the Investor’s Business Daily system, has gathered over $500 million in assets under management.  The IBD 50 ETF (FFTY), designed to track the returns of the IBD 50 index, offers investors access to a rotating basket of 50 stocks. Adjusted on a weekly basis, the Investor’s Business Daily 50 targets companies based on growth, large increases in sales, return on equity and healthy profit margins. Other Innovator IBD products include BOUT, a break out opportunities ETF, and LDRS, an ETF made up of other top performing IBD ETFs. Bond’s series of Defined Outcome ETFs aims to offer 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 big effort, explains Bond, is helping advisors really understand the products, how they work, and what factors need to be considered. For advisors interested in learning more on this topic, catch the replay of Innovator Capital’s webcast: Own the S&P 500 with Built-in Downside Buffers. The presentation covers:
  • How the Only Defined Outcome ETFsSM Work: Mechanics of the Defined Outcome ETFsSM and an introduction to the upcoming April Series
  • Lock in the Rally, Remain Buffered for the Rest of 2019: Easy Implementation Ideas
  • Ease of Trading Defined Outcome ETFsSM: The substantial liquidity underlying the Defined Outcome ETFsSM
Watch Replay.