Innovator Capital Management, LLC (Innovator) announced today
the anticipated upside Cap Ranges and return profiles for the
January Series of Innovator S&P 500 Defined Outcome ETFs,
scheduled for Cboe listing on January 2, 2019.
Innovator S&P 500 Defined Outcome ETFs seek
to provide investors exposure to the S&P 500 Price Return Index
(S&P 500) to a Cap, with downside buffer levels of 9%, 15%, or
30% over an Outcome Period of approximately one year. The ETFs
reset annually and can be held indefinitely.
Return profiles for January 2019 Series
- Innovator Defined Outcome ETFs, as of 12/07/18
January 2019 SERIES |
Buffer Level |
Cap Range* |
Outcome Period |
BJAN |
Innovator
S&P 500 Buffer ETF |
9.00% |
15.77 -
21.99% (gross)14.98 - 21.20% (net of management fee) |
12 months 1/01/19 - 12/31/19 |
|
|
|
|
|
PJAN |
Innovator
S&P 500 Power Buffer ETF |
15.00% |
10.92 -
13.33% (gross)10.13 - 12.54% (net of management fee) |
12 months 1/01/19 - 12/31/19 |
|
|
|
|
|
UJAN |
Innovator S&P 500 Ultra Buffer ETF |
30.00% (-5% to -35%) |
10.01 - 12.07% (gross) 9.22 - 11.28% (net of management
fee) |
12 months 1/01/19 - 12/31/19 |
* The Cap Ranges above are based on the highest and lowest Cap
as illustrated by the Funds’ strategy from 11/07/2018 to 12/07/2018
and are shown gross and net of the 0.79% management fee. The actual
Cap for each Fund will be set at the beginning of the Outcome
Period, and is dependent upon market conditions at that time. As a
result, the Cap set by each Fund may be higher or lower than the
Cap Range. “Cap” refers to the maximum potential return, before
fees and expenses and any shareholder transaction fees and any
extraordinary expenses, if held over the full Outcome Period.
“Buffer” refers to the amount of downside protection the fund seeks
to provide, before fees and expenses, over the full Outcome Period.
Outcome Period is the intended length of time over which the
defined outcomes are sought. |
“Innovator S&P 500 Defined Outcome ETFs provide investors
the ability to stay invested in the market knowing they have upside
growth potential and very specific downside buffer levels,” said
Bruce Bond, CEO of Innovator ETFs. “Building portfolios with
Defined Outcome ETFs is similar to using any other S&P 500 ETF;
they just have an added feature of built in buffers against losses
over a specified period. It is really that simple, and it seems
unlikely investors will get capped out in 2019 based on the current
cap ranges available compared to historical average calendar year
returns and 2019 stock market forecasts.”
“Innovator S&P 500 Defined Outcome ETFs
represent a unique S&P 500 market exposure that can deliver
less volatility and limit investors’ downside risk,” added John
Southard, Innovator’s chief investment officer. “In light of recent
market volatility, we believe Defined Outcome ETFs offer a very
compelling, practical solution for strategic long-term portfolios
and with investors who have a preservation mindset in the current
environment.”
Innovator S&P 500 Defined Outcome ETFs were
selected as a Hidden Gem for 2018 by ETF.com and Inside ETFs in
their annual effort to shine light on the best innovation taking
place within the ETF marketplace. For additional information visit:
Hidden Gem ETFs: 2018.
Continuing educational efforts around the
Innovator Defined Outcome ETFs, Innovator will host its next
webinar titled, "S&P 500 ETFs That Buffer Against Losses of 9%,
15%, or 30%".
Webinar - Invest
confidently in 2019: Learn how to use Defined Outcome ETFs in your
practice - Thursday, Jan 3, 2019 2:30 PM - 3:30 PM MST
Click on the link above to register.
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.
Innovator S&P 500 Defined Outcome
ETFs – January Series
Innovator S&P 500 Buffer ETF (Cboe: BJAN):
Designed to track the return of the S&P 500 (up to a
predetermined Cap) while buffering investors against the first 9%
of losses over the Outcome Period, before fees and expenses.
Innovator S&P 500 Power Buffer ETF
(Cboe: PJAN): Designed to track the return of the S&P
500 (up to a predetermined Cap) while buffering investors against
the first 15% of losses over the Outcome Period, before fees and
expenses.
Innovator S&P 500 Ultra Buffer ETF
(Cboe: UJAN): Designed to track the return of the S&P
500 (up to a predetermined Cap) while buffering investors against a
decline of 30% of losses over the Outcome Period, from -5% to -35%,
before fees and expenses. Investors are exposed to loss between 0%
and 5% and over 35% over the Outcome Period, before fees and
expenses.
About Innovator S&P 500 Defined
Outcome ETFs
Each Innovator S&P 500 Defined Outcome ETF
seeks to provide investors defined exposure to the S&P 500,
where the downside buffer level, upside growth potential to a Cap,
and Outcome Period are all known, prior to investing.
Innovator plans to issue Defined Outcome ETFs in
a quarterly series to provide investors an opportunity to purchase
shares as close to the beginning of their respective Outcome
Periods as possible. Investors can also purchase shares of a
previously listed Defined Outcome ETF throughout the entire Outcome
Period; and obtain a current set of defined outcome parameters,
which are disclosed daily through a web tool available at:
http://innovatoretfs.com/define/.
Innovator is focused on delivering defined
outcome based solutions inside the benefit-rich ETF wrapper,
retaining many of the features that have contributed to the success
of structured products2 (e.g., downside buffer levels, defined
outcome parameters), but with the added benefits of transparency,
liquidity and lower costs afforded by the ETF structure.
Interim Period Shareholders
Unlike structured notes, which offer limited
liquidity, Innovator Defined Outcome ETFs trade throughout the day
on an exchange, like a stock. As a result, investors purchasing
shares of a Fund after its launch date will achieve a different
payoff profile than those who entered the Fund on day one.
Innovator recognizes this as a benefit of the Funds and provides a
web-based tool that allows investors to know, in real-time
throughout the trading day, their potential defined outcome profile
before they invest, based on the current ETF price and the Outcome
Period remaining. Innovator’s web tool can be accessed at
http://www.innovatoretfs.com/define.
ETF Construction
Each Fund will hold a portfolio of custom
exchange-traded FLEX Options that have varying strike prices (the
price at which the option purchaser may buy or sell the security,
at the expiration date), and the same expiration date
(approximately one year). The layering of these FLEX Options with
varying strike prices provides the mechanism for producing a Fund’s
desired outcome (i.e. Cap or buffer). Each Fund intends to roll
options components annually, on the last business day of the month
associated with each Fund.
The ETFs will be subadvised by Milliman
Financial Risk Management LLC (Milliman FRM), a global leader in
financial risk management. Milliman FRM was also instrumental in
the design of the Cboe S&P 500 Target Outcome Indexes, which
the Innovator Defined Outcome ETFs are benchmarked against.
Although each Fund seeks to achieve the
defined outcomes stated in its investment objective, there is no
guarantee that it will do so. The returns that the Funds seek to
provide do not include the costs associated with purchasing shares
of the Fund and certain expenses incurred by the Fund.
About Innovator Capital Management,
LLC
Innovator Capital Management, LLC is an SEC
registered investment advisor (RIA) based in Wheaton, IL. Formed in
2014, the firm is currently headed by ETF visionaries Bruce Bond
and John Southard, founders of one of the largest ETF providers in
the world. Innovation is our hallmark and acts as a guide to our
company principles. Innovator is committed to helping investors
better control their financial outcomes by providing investment
opportunities they never considered or thought possible. For
additional information, visit
www.innovatoretfs.com.
About Cboe Global Markets,
Inc.
Cboe Global Markets, Inc. (Cboe: CBOE | Nasdaq:
CBOE) is one of the world’s largest exchange-holding companies,
offering cutting-edge trading and investment solutions to investors
around the world. For more information, visit
www.cboe.com.
About Milliman Financial Risk Management
LLC
Milliman Financial Risk Management LLC (Milliman
FRM) is a global leader in financial risk management to the
retirement industry, providing investment advisory, hedging, and
consulting services on over $149 billion in global assets as of
June 30, 2018. For more information about Milliman FRM, visit
www.Milliman.com/FRM.
Media ContactBill Conboy+1 (303)
415-2290bill@bccapitalpartners.com
1 Due to prevailing market conditions the January Series is able
to offer higher upside caps than the June and October Series.
2 Structured notes and structured annuities are
financial instruments designed and created to afford investors
exposure to an underlying asset through a derivative contract. It
is important to note that these ETFs are not structured notes or
structured annuities.
BEFORE INVESTING YOU SHOULD CONSIDER CAREFULLY
THE FUNDS INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES. THIS
AND OTHER INFORMATION IS IN THE PROSPECTUS, A COPY OF WHICH MAY BE
OBTAINED BY CALLING 800.208.5212. PLEASE READ THE PROSPECTUS
CAREFULLY BEFORE INVESTING.
INFORMATION CONTAINED HEREIN IS SUBJECT TO
COMPLETION OR AMENDMENT. A REGISTRATION STATEMENT RELATING TO THESE
SECURITIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION BUT HAS NOT YET BECOME EFFECTIVE. THESE SECURITIES MAY
NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME THE
REGISTRATION STATEMENT BECOMES EFFECTIVE. THIS COMMUNICATION SHALL
NOT CONSTITUTE AN OFFER TO BUY OR THE SOLICITATION OF AN OFFER TO
BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES IN ANY STATE IN
WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO
REGISTRATION OR QUALIFICATION UNDER SECURITIES LAWS OF ANY SUCH
STATE. AN INDICATION OF INTEREST IN RESPONSE TO THIS ADVERTISEMENT
WILL INVOLVE NO OBLIGATION OR COMMITMENT OF ANY KIND.
AN INDICATION OF INTEREST IN RESPONSE TO THIS
ADVERTISEMENT WILL INVOLVE NO OBLIGATION OR COMMITMENT OF ANY
KIND.
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 OCC. 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.
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 provide
buffered returns. The Funds shares will be listed
for trading on the Cboe. The Funds will not terminate after the
conclusion of an Outcome Period. After the conclusion of an Outcome
Period, another will begin.
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.
Cboe Global Markets, Inc., and its
affiliates do not recommend or make any representation as to
possible Benefits from any securities, futures or investments, or
third-party products or services. Cboe Global Markets, Inc., is not
affiliated with S&P DJI, Milliman, or Innovator Capital
Management. Investors should undertake their own due diligence
regarding their securities, futures and investment
practices.
Cboe Global Markets, Inc., and its
affiliates make no warranty, expressed or implied, including,
without limitation, any warranties as of merchantability, fitness
for a particular purpose, accuracy, completeness or timeliness, or
as to the results to be obtained by recipients of the
products.
Innovator ETFs are distributed by Foreside Fund Services,
LLC.
Copyright © 2018 Innovator Capital Management,
LLC.
800.208.5212
Innovator US Equity Ultr... (AMEX:UOCT)
Graphique Historique de l'Action
De Nov 2024 à Déc 2024
Innovator US Equity Ultr... (AMEX:UOCT)
Graphique Historique de l'Action
De Déc 2023 à Déc 2024