Own the S&P 500 with Built-in Downside Buffers – Innovator ETFs – 3.18.19
Summary:
Now On Demand.
The Innovator S&P 500 Defined Outcome ETFsSM are the only ETFs in the world to provide investors with S&P 500 performance and defined downside buffers. The ETFs provide defined outcomes over one-year periods, are rebalanced annually, and can be held indefinitely. The ETFs are among the fastest growing in the market today.
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
The April Series ETFs list on April 1, 2019
Sponsors of this webcast may contact registrants.
Speakers:
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.
Matt Kaufman Principal Milliman Financial Risk Management
Matt is director of marketing at Milliman’s Financial Risk Management practice in Chicago. This group advises corporations and financial institutions on financial and capital markets risk management. In his current role, Matt directs the group’s overall brand, marketing, and public relations strategies.
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.
Overview:
Title: Own the S&P 500 with Built-in Downside Buffers
For Financial Professionals Only.
1. The Cap Ranges above are based on the highest and lowest Cap as illustrated by the Funds’ strategy from 1/31/19 – 3/1/19 and are shown gross of the 0.79% management fee. The actual Caps will be set at the beginning of the Outcome Period, and are dependent upon market conditions at that time. As a result, the Caps may be higher or lower than the Cap Range. Upon fund launch, the Caps can be found on a daily basis via www.innovatoretfs.com. BAPR, PAPR and UAPR are not yet available for investment.
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.
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 investment returns very different 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.
Investors are subject to an upside return Cap that represents the maximum percentage return an investor can achieve from an investment in the Fund for the Outcome Period. Therefore, even though a Fund’s returns are based upon the S&P 500, if the Fund experiences returns for the Outcome Period in excess of the Cap, you will not experience those excess gains but will remain vulnerable to significant downside risks. Regardless of the performance of the S&P 500, the Cap is the maximum return an investor can achieve from an investment in the Fund for the Outcome Period. The Cap will change from year-to-year based upon prevailing market conditions at the beginning of the Outcome Period. The Cap, and the Fund’s position relative to it, should be considered before investing in the Fund.
Similarly, the buffer that the Funds seek to provide is only operative against the percentage (i.e. 9%, 15% and 30%) of S&P 500 losses for the applicable Fund’s Outcome Period. If an investor is considering purchasing shares during the Outcome Period, and the Fund has already decreased in value by an amount equal to or greater than its buffer, an investor purchasing shares at that price will have increased gains available prior to reaching the Cap but may not benefit from the buffer that the Fund seeks to offer for the remainder of the Outcome Period. Conversely, if an investor is considering purchasing Shares during the Outcome Period, and the Fund has already increased in value, then a shareholder may experience losses prior to gaining the protection offered by the buffer. After the S&P 500 has decreased in value by more than a Fund’s buffer during an Outcome Period, the Fund will experience any subsequent losses on a one-to-one basis. There is no guarantee that a Fund will be successful in its attempt to provides buffered returns. The Funds shares will be listed for trading on the CBOE BZX Exchange. The Funds will not terminate after the conclusion of an Outcome Period. After the conclusion of an Outcome Period, another will begin.
Innovator ETFs are distributed by Foreside Fund Services, LLC.
