Introducing Premium Income Barrier ETFs – Innovator ETFs – 4.17.23


Title: Introducing Premium Income Barrier ETFs
Date: Monday, April 17, 2023
Time: 1:00 PM Eastern Daylight Time
Duration: 1 hour

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During this webcast we will discuss:

  • How Premium Income Barrier ETFs seek to provide high levels of income and a protective barrier against losses.
  • The persistent uncertainty in 2023 and how defined outcome strategies seek to mitigate risk.
  • The tactical advantages in creating a payoff profile based on equity index options and U.S. Treasuries.

Learn more about Premium Income Barrier ETFs here.

Accepted for 1 CFP® / IWI / CFA CE Credit


Tim Urbanowicz, CFA Tim Urbanowicz, CFA Head of Research & Investment Strategy Innovator ETFs

Tim Urbanowicz, CFA is the Head of Research & Investment Strategy for Innovator Capital Management. In his role, Tim is responsible for all market research, investment strategy, and portfolio solutions. Prior to joining Innovator, Tim was a Sr. Investment Strategist for Northern Trust, serving as a subject matter expert on global markets and portfolio construction. Prior to joining Northern Trust, Tim served as the Director of Fixed Income ETFs and Head Capital Markets Strategist for Invesco.

Graham Day, CFA Graham Day, CFA SVP, Chief Investment Officer Innovator ETFs

Graham joined Innovator Capital Management in 2017 and is Senior Vice President, Chief Investment Officer, responsible for product development, capital markets and research efforts. Prior to joining Innovator, Graham was SVP – head of product & research at a startup ETF issuer and a Senior Strategist at Invesco PowerShares. He has been quoted in,, FA magazine, FOX Business and Graham is a CFA charter holder, a member of the CFA Society of Chicago and holds a bachelor’s degree from Wheaton College.

For financial professional use only

The Funds have characteristics unlike many other traditional investment products and may not be suitable for all investors. For more information regarding whether an investment in the Fund is right for you, please see “Investor Suitability” in the prospectus.

The Funds seeks to provide investors, over a 1 year outcome period, with an investment that provides a high level of income through a Defined Distribution Rate that is not subject to any losses experienced by the U.S. Equity Index that are at or below the respective Barrier (10,20,30,40) and is subject to initial losses experienced by the U.S. Equity Index beginning at the Barrier and to the full extent of U.S. Equity Index losses on a one-to-one basis beginning after the barrier threshold has been crossed.

The Barrier ETFs’ distribution rate is based upon a rate that is comprised of the income generated by the U.S. Treasuries and the premiums received from the Fund selling FLEX Options. Over each Outcome Period, shareholders will also be subject to U.S. Equity Index losses that are based upon an investment “barrier,” which is an investment strategy whereby a payoff depends on whether an underlying asset has breached a predetermined performance level. The Funds seek to provide a pre-determined barrier at [respectively 10, 20, 30, or 40]% of U.S. Equity Index losses for each Outcome Period (the “Barrier”) by selling FLEX Options that reference the U.S. Equity Index for each Outcome Period (the “Barrier Options”). There is no guarantee that the Fund will be successful in its attempt to implement the Barrier.

Fund shareholders also will be subject to all losses experienced by the U.S. Equity Index if the U.S. Equity Index experiences losses that exceed the Barrier at the end of the Outcome Period. If at the end of the Outcome Period the U.S. Equity Index has experienced a positive price return, or price return losses that are less than the Barrier, the Fund is designed to provide returns that equal the Distribution Rate. However, if the U.S. Equity Index has decreased in value below the Barrier at the end of the Outcome Period, the Fund’s investments will generate Outcomes that equal the Distribution Rate less the entirety of the U.S. Equity Index’s losses over the course of the Outcome Period. The Fund will not benefit from any increases in the U.S. Equity Index over the course of an Outcome Period but is subject to the possibility of significant losses experienced by the U.S. Equity Index if the value of the U.S. Equity Index drops below the Barrier at the end of the Outcome Period. An investor could lose its entire investment. The Fund will not receive or benefit from any dividend payments made by the constituents of the U.S. Equity Index.

A shareholder may lose its entire investment. In the event an investor purchases Shares after the commencement of the Outcome Period or sells Shares prior to the expiration of the Outcome Period, the Barrier that the Fund seeks to provide may not be available. In addition, the operationality of the Barrier is such that the Fund may experience dramatic changes in value of its NAV at the end of the Outcome Period, even if the changes in the U.S. Equity Index are minimal. If the U.S. Equity Index’s value is at or near the Barrier at the end of the Outcome Period, small changes in the value of the U.S. Equity Index could result in dramatic changes in the value of the Barrier Options and therefore the Fund’s NAV. Investors should understand these risks before investing in the Fund.

The Outcomes may only be realized by investors who continuously hold Shares from the commencement of the Outcome Period until its conclusion. Investors who purchase Shares after the Outcome Period has begun or sell Shares prior to the Outcome Period’s conclusion may experience investment returns very different from those that the Fund seeks to provide.

The Funds’ website,, provides important Fund information as well as information relating to the potential outcomes of an investment in a Fund on a daily basis.

The Fund uses its net assets (including the premiums received by selling Barrier Options) to purchase U.S. Treasuries that expire at the end of the Outcome Period. The U.S. Treasuries are entitled to an interest rate, which when added to the premiums received for selling Barrier Options, produce the Distribution Rate. The Distribution Rate is distributed to shareholders in Fund Distributions. The amount of the Fund Distributions is dependent, in part, upon the income received from the U.S. Treasuries, which is not guaranteed. If the U.S. Treasuries fail to pay income or pay less income than anticipated, the Distribution Rate will not be obtained, and a Fund Distribution will be less than anticipated.

FLEX Options Risk. The Fund will utilize FLEX Options issued and guaranteed for settlement by the Options Clearing Corporation (OCC). 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 standard options. In a 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.

Innovator ETFs are distributed by Foreside Fund Services, LLC.

The Funds’ investment objectives, risks, charges and expenses should be considered carefully before investing. The prospectus contains this and other important information, and it may be obtained at Read it carefully before investing.