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Innovator ETFs Plans to List July Series of Nasdaq 100 and Russell 2000 Power Buffer ETFs, Announces New Upside Cap Ranges for July Defined Outcome Buffer ETFs on S&P 500, MSCI EAFE and MSCI Emerging Markets

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NJUL and KJUL to complete quarterly listings that provide buffered exposure to Growth and Technology stocks, US Small-Cap equities

IJUL and EJUL set to mark first full outcome period for MSCI EAFE and MSCI Emerging Markets Power Buffer ETF Suite

Chicago, IL, June 24, 2020 (GLOBE NEWSWIRE) -- Innovator Capital Management, LLC (Innovator) today announced plans to list the July series of its Innovator Nasdaq 100 Power Buffer ETF (NJUL) and Innovator Russell 2000 Power Buffer ETF (KJUL) on Cboe July 1st. The listing of NJUL and KJUL will complete the quarterly issuance schedule of Innovator's Nasdaq 100 and Russell 2000 Power Buffer ETF suites. Innovator also announced the anticipated upside cap ranges for the July series of Innovator S&P 500 Buffer ETFs (BJUL, PJUL and UJUL) and the Innovator MSCI EAFE (IJUL) and MSCI Emerging Markets (EJUL) Power Buffer ETFs. Additionally, IJUL and EJUL will complete their first outcome period and reset at the end of the month. It was a year that saw some international stock market benchmarks reach record highs before one of the most rapid bear market drawdowns and subsequent rebounds in the history of global equity market indices.

The Buffer ETFs™ are part of Innovator's category-creating Defined Outcome ETF™ family – the first group of ETFs designed to provide investors with built-in buffers against losses of -9% ("Buffer"), -15% ("Power Buffer") or -30% ("Ultra Buffer") and exposure to the growth of equity markets, to a cap, in a tax-efficient vehicle over a one year outcome period. In 2019, Innovator expanded the Defined Outcome lineup beyond the S&P 500 Buffer ETF Suite to offer quarterly issued Power Buffer ETFs on the MSCI EAFE, MSCI Emerging Markets, Russell 2000 and Nasdaq 100 indices, allowing advisors to create diversified portfolios of key equity market exposures with built-in buffers against the first 15% of losses in the respective market, with upside participation up to a cap over a one year period. With the listing of NJUL and KJUL, Innovator will have 48 total Defined Outcome Buffer ETFs in the market with total assets under management (AUM) exceeding $2.9 billion and over $1.1 billion in inflows year-to-date1. Innovator was recently named "ETF Issuer of the Year – 2019" in the seventh annual ETF.com Awards, acknowledging the rapid advisor adoption and the positive potential impact on investor behavior of the Defined Outcome ETFs.

Bruce Bond, CEO of Innovator ETFs, said, "With the coming completion of quarterly issuance in our Nasdaq 100 and Russell 2000 Power Buffer ETFs, we're providing investors more tools to help manage risk in diversified equity portfolios. While the Nasdaq 100 Index lost less than other segments of the domestic equity market and has led the rally off the March lows to reach  record highs this week, the recovery has broadened and small-caps have rebounded strongly since their bottom. With Covid-19, however, uncertainty reigns and many investors are equally concerned with missing out on the potential for a continued recovery rally as they are with putting capital at risk should another leg down come."

Bond continued, "This conundrum extends to international stocks, which have rallied significantly from their lows. The July series of the Innovator Power Buffer ETFs on the MSCI EAFE and MSCI Emerging Markets Indices have, to date, provided since inception investors with lower drawdowns in the depths of the pandemic panic and reduced volatility2 during their tumultuous first full outcome period. For advisors seeking to mitigate risk yet maintain global stock market exposure, we think the opportunity for upside participation with a buffer against a known level of loss over a defined period of time provides a strong proposition to a diversified portfolio."

Anticipated return profiles for the Innovator S&P 500, Nasdaq 100, Russell 2000, MSCI EAFE, and MSCI EM July Series of Defined Outcome Buffer ETFs, as of 6/22/20

 

Ticker Name Buffer Level Cap Range* Outcome Period
BJUL Innovator S&P 500
Buffer ETF™ - July
9.00% 14.75 – 17.98%
12 months
7/1/20 – 6/30/20
PJUL Innovator S&P 500
Power Buffer ETF™ - July
15.00% 9.82 – 12.63%
12 months
7/1/20 – 6/30/20
UJUL Innovator S&P 500
Ultra Buffer ETF™ - July
30.00%
(-5% to -35%)
6.68 – 8.63%
12 months
7/1/20 – 6/30/20
NJUL Innovator Nasdaq-100
Power Buffer ETF™ - July
15.00% 11.30 – 17.70%
12 months
7/1/20 – 6/30/20
KJUL Innovator Russell 2000
Power Buffer ETF™ - July
15.00% 13.17 – 18.29%
12 months
7/1/20 – 6/30/20
IJUL Innovator MSCI EAFE
Power Buffer ETF™ - July
15.00% 7.93 – 15.59%
12 months
7/1/20 – 6/30/20
EJUL Innovator MSCI Emerging Markets
Power Buffer ETF™ - July
15.00% 10.65 – 15.33% 12 months
7/1/20 – 6/30/20

 


* The Cap Ranges above are based on the highest and lowest Cap as illustrated by the Funds' strategy from 5/26/20-6/22/20 and are shown gross of their respective management fee (.79% for BJUL, PJUL, UJUL, NJUL and KJUL; .85% for IJUL and .89% for EJUL). 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. Periods of high market volatility could result in higher caps, and lower volatility could result in lower caps. 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. Upon fund launch, the Caps can be found on a daily basis via www.innovatoretfs.com. NJUL and KJUL are not yet available for investment.

The July Series of Innovator S&P 500 Buffer ETFs (BJUL, PJUL, UJUL) as well as the Innovator MSCI EAFE and MSCI Emerging Markets Power Buffer ETFs (IJUL, EJUL) currently have a remaining outcome period of under one week, with known upside potential and downside buffers through month-end. Investors who purchase prior to the rebalance on July 1, 2020 will be fully invested for the next outcome period, obtaining new upside caps and downside buffers on July 1, 2020 for the year ahead. For additional information, visit the Innovator Defined Outcome ETF Pricing Tool.

Quarterly issuance of Innovator Power Buffer ETFs on the Nasdaq 100, Russell 2000, MSCI EAFE and MSCI Emerging Markets Indices provides advisors a wider range of return profiles to better manage risk and more frequent opportunities to allocate near the beginning of an outcome period.

Innovator Defined Outcome ETFs - Benefits to Advisors

 

Innovator's Defined Outcome ETFs are the subject of a patent application filed with the U.S. Patent and Trademark Office.

 

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.

 

About Innovator Defined Outcome ETFs

Defined Outcome ETFs are the world's first ETFs that seek to provide investors the upside performance of broadly recognized indexes (e.g., S&P 500, Nasdaq 100, Russell 2000, MSCI EAFE, and MSCI Emerging Markets) to a cap, with built-in buffers, over an outcome period of one year. The ETFs reset annually and can be held indefinitely.

Each Buffer ETF in Innovator's Defined Outcome ETF suite seeks to provide a defined exposure to a broad market index where the downside buffer level, upside growth potential to a cap, and Outcome Period are all known, prior to investing. In 2019, Innovator began expanding its suite of S&P 500 Buffer ETFs into a monthly series to provide investors more opportunities to purchase shares as close to the beginning of their respective Outcome Periods as possible.

Investors can purchase shares of a previously listed Defined Outcome ETF throughout the entire Outcome Period, obtaining 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 products5 (e.g., downside buffer levels, upside participation, defined outcome parameters), but with the added benefits of transparency, liquidity, the elimination of credit risk and lower costs afforded by the ETF structure.

 

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 $148.6 billion in global assets as of September 30, 2019. Milliman FRM is one of the largest and fastest-growing subadvisors of ETFs. For more information about Milliman FRM, visit Milliman.com/FRM.

 

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 may 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 return 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.

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.

Investing involves risks. Loss of principal is possible. 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, liquidity risk, management risk, market maker risk, market risk, non-diversification risk, operation risk, options risk, trading issues risk, upside participation risk and valuation risk. For a detail list of fund risks see the prospectus.

Market Disruptions Resulting from COVID-19. The outbreak of COVID-19 has negatively affected the worldwide economy, individual countries, individual companies and the market in general. The future impact of COVID-19 is currently unknown, and it may exacerbate other risks that apply to the Fund.

Foreign and Emerging Markets Risk Non-U.S. securities and Emerging Markets are subject to higher volatility than securities of domestic issuers due to possible adverse political, social or economic developments, restrictions on foreign investment or exchange of securities, lack of liquidity, currency exchange rates, excessive taxation, government seizure of assets, different legal or accounting standards, and less government supervision and regulation of securities exchanges in foreign countries.

Technology Sector Risk Companies in the technology sector are often smaller and can be characterized by relatively higher volatility in price performance when compared to other economic sectors. They can face intense competition, which may have an adverse effect on profit margins.

Small-Cap Risk Small-cap companies may be more volatile and susceptible to adverse developments than their mid- and large-cap counterpart. In addition, the small-cap companies may be less liquid than larger companies.

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.

These Funds are designed to provide point-to-point exposure to the price return of the Index via a basket of Flex Options. As a result, the ETFs are not expected to move directly in line with the Index during the interim period.

Investors purchasing shares after an outcome period has begun may experience very different results than funds' investment objective. Initial outcome periods are approximately 1-year beginning on the funds' inception date. Following the initial outcome period, each subsequent outcome period will begin on the first day of the month the fund was incepted. After the conclusion of an outcome period, another will begin.

Fund shareholders are subject to an upside return cap (the "Cap") that represents the maximum percentage return an investor can achieve from an investment in the funds' for the Outcome Period, before fees and expenses. If the Outcome Period has begun and the Fund has increased in value to a level near to the Cap, an investor purchasing at that price has little or no ability to achieve gains but remains vulnerable to downside risks. Additionally, the Cap may rise or fall from one Outcome Period to the next. The Cap, and the Fund's position relative to it, should be considered before investing in the Fund. The Funds' website, www.innovatoretfs.com, provides important Fund information as well information relating to the potential outcomes of an investment in a Fund on a daily basis.

The Funds only seek to provide shareholders that hold shares for the entire Outcome Period with their respective buffer level against Index losses during the Outcome Period. You will bear all Index losses exceeding 9, 15 or 30%. Depending upon market conditions at the time of purchase, a shareholder that purchases shares after the Outcome Period has begun may also lose their entire investment. For instance, if the Outcome Period has begun and the Fund has decreased in value beyond the pre-determined buffer, an investor purchasing shares at that price may not benefit from the buffer. Similarly, if the Outcome Period has begun and the Fund has increased in value, an investor purchasing shares at that price may not benefit from the buffer until the Fund's value has decreased to its value at the commencement of the Outcome Period.

Nasdaq® is a registered trademark of Nasdaq, Inc. (which with its affiliates is referred to as the "Corporations") and is licensed for use by Innovator Capital Management, LLC. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations.

THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).

The Innovator Russell 2000 Power Buffer ETF (the "Fund") has been developed solely by Innovator Capital Management, LLC. The "Fund" is not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the "LSE Group"). FTSE Russell is a trading name of certain of the LSE Group companies. All rights in the Russell 2000 Index (the "Index") vest in the relevant LSE Group company, which owns the Index. "FTSE®" "Russell®", and "FTSE Russell®" are trade marks of the relevant LSE Group company and are used by any other LSE Group company under license.

The Index is calculated by or on behalf of FTSE International Limited or its affiliate, agent or partner. The LSE Group does not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Index or (b) investment in or operation of the Fund. The LSE Group makes no claim, prediction, warranty or representation either as to the results to be obtained from the Fund or the suitability of the Index for the purpose to which it is being put by Innovator Capital Management, LLC.

The ETFs referred to herein is not sponsored, endorsed, or promoted by MSCI Inc. or based upon the MSCI EAFE and MSCI Emerging Markets Indexes. MSCI Inc. bears no liability with respect to the ETFs.

MSCI, MSCI EAFE, and MSCI Emerging Markets are trademarks or service marks of MSCI Inc. or its affiliates ("Marks") and are used hereto subject to license from MSCI. All goodwill and use of Marks inures to the benefit of MSCI and its affiliates. No other use of the Marks is permitted without a license from MSCI.

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 ETFsTM, Defined Outcome ETFTM, Buffer ETFTM, Enhanced ETFTM, Define Your FutureTM, Leading the Defined Outcome ETF RevolutionTM and other service marks and trademarks related to these marks are the exclusive property of Innovator Capital Management, LLC.

NJUL and KJUL are not yet available for investment.

NJUL and KJUL: 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.

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

Innovator ETFs are distributed by Foreside Fund Services, LLC.

Copyright © 2020 Innovator Capital Management, LLC.

800.208.5212 

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1 AUM is through June 23, 2020 while inflows are through June 22, 2020.

2 Volatility is a statistical measure of the dispersion of returns for a given security or market index.

3 AUM in all Innovator Defined Outcome ETFs as of 6.23.2020.

4 Innovator Capital Management, LLC is the only issuer that has Defined Outcome ETFs available that have completed a one-year Outcome Period.

5 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.

 

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Paul Damon
Innovator ETFs
+1 802.999.5526
paul@keramas.net
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