On Thursday, Innovator Capital Management, LLC, the Defined Outcome ETF™ pioneer, announced the launch of the latest four funds in the Accelerated ETFs™ suite – (XDJL ), (XBJL ), (XTJL ), (QTJL ) – listing on Cboe. Innovator also announced the upside caps and return profiles for the July series of the Equity Buffer ETFs™, Defined Outcome Bond ETFs™, and Accelerated ETFs™, which reset at the end of the month.
The following Accelerated ETFs™ based on the Large-cap U.S. equity market through options on SPY (the SPDR S&P 500 ETF Trust) launched:
- Innovator U.S. Equity Accelerated ETF™ – July (XDJL) seeks to provide investors with double the upside performance of SPY, to a cap, with approximately single exposure to SPY on the downside, over a one-year outcome period.
- Innovator U.S. Equity Accelerated 9 Buffer ETF™ – July (XBJL) seeks to provide investors with double the upside performance of SPY, to a cap, with approximately single exposure to SPY on the downside and a buffer against the first 9% of losses in SPY, over a one-year outcome period.
- Innovator U.S. Equity Accelerated Plus ETF™ – July (XTJL) seeks to provide investors with triple the upside performance of SPY, to a cap, with approximately single exposure to SPY on the downside, over a one-year outcome period.
Innovator is also listing the following Accelerated ETF™ based on Growth stocks through options on QQQ (the Invesco QQQ Trust):
- Innovator Growth-100 Accelerated Plus ETF™ – July (QTJL) seeks to provide investors with triple the upside performance of QQQ, to a cap, with approximately single exposure to QQQ on the downside, over a one-year outcome period.
The Defined Outcome ETFs™ announcing new upside caps and/or refreshed buffers include:
- the Accelerated ETFs™, which welcome four new listings (XDJL, XBJL, XTJL, QTJL) to the Defined Outcome ETF™ family. The Accelerated ETFs™ are the world’s first ETFs to seek to offer a multiple of the upside return of a reference asset (SPY or QQQ), up to a cap, with approximately single exposure on the downside.
- the two quarterly outcome period Accelerated ETFs™ ( (XDSQ ), (XDQQ )) that have reset for the first time.
- the S&P 500 Buffer ETFs™ ( (BJUL ) (S&P 500 Buffer ETF™ – July), (PJUL ) (S&P 500 Power Buffer ETF™ – July) and (UJUL ) (S&P 500 Ultra Buffer ETF™ – July)), which concluded their third outcome period at the end of the month;
- the International Equity Power Buffer ETFs™ ( (IJUL ) (Innovator MSCI EAFE Power Buffer ETF™ – July) and (EJUL ) (Innovator MSCI Emerging Markets Power Buffer ETF™ – July)), which finished their second outcome period;
- the Domestic Equity Power Buffer ETFs™ ( (NJUL ) (Innovator Nasdaq-100 Power Buffer ETF™ – July) and (KJUL ) (Innovator Russell 2000 Power Buffer ETF™ – July)), which completed their first outcome period;
- as well as the Defined Outcome Bond ETFs™ ( (TFJL ) (Innovator 20+ Year Treasury Bond 5 Floor ETF™ – July) and (TBJL ) (Innovator 20+ Year Treasury Bond 9 Buffer ETF™ – July)), which are the first ETFs to provide buffered exposure to (TLT ) (the iShares 20+ Year Treasury Bond ETF) with upside to a cap, and completed their first outcome period at the end of the month, successfully buffering against TLT losses since the ETFs’ inception in 2020. The Innovator 20+ Year Treasury Bond 5 Floor ETF™ – July (TFJL), is now operating on a quarterly outcome period allowing for more frequent resets and even potentially better risk management against downside in long-dated U.S. Treasuries via options on TLT.
Return profiles for the Innovator Buffer ETFs™ and Defined Outcome Bond ETFs™ – July series, as of 7/01/21
| Ticker | Name | Buffer Level | Cap* | Outcome Period | |||
|---|---|---|---|---|---|---|---|
| (BJUL ) | Innovator S&P 500Buffer ETF™ – July | 9.00% | 12.00% | 12 months7/01/21 – 6/30/22 | |||
| (PJUL ) | Innovator S&P 500Power Buffer ETF™ – July | 15.00% | 7.80% | 12 months7/01/21 – 6/30/22 | |||
| (UJUL ) | Innovator S&P 500Ultra Buffer ETF™ – July | 30.00%(-5% to -35%) | 6.00% | 12 months7/01/21 – 6/30/22 | |||
| (IJUL ) | Innovator MSCI EAFEPower Buffer ETF™ – July | 15.00% | 6.77% | 12 months7/01/21 – 6/30/22 | |||
| (EJUL ) | Innovator MSCI Emerging MarketsPower Buffer ETF™ – July | 15.00% | 8.78% | 12 months7/01/21 – 6/30/22 | |||
| (NJUL ) | Innovator Nasdaq-100Power Buffer ETF™ – July | 15.00% | 9.01% | 12 months7/01/21 – 6/30/22 | |||
| (KJUL ) | Innovator Russell 2000Power Buffer ETF™ – July | 15.00% | 9.65% | 12 months7/01/21 – 6/30/22 | |||
| (TFJL ) | Innovator 20+ Year Treasury Bond 5 Floor ETF™ | 5.00% Floor | 2.30% | 3 months7/01/21 – 9/30/21 | |||
| (TBJL ) | Innovator 20+ Year Treasury Bond 9 Buffer ETF™ | 9.00% | 9.00% | 12 months7/01/21 – 6/30/22 |
* The Caps above are shown gross of each fund’s management fee (.79% for all ETFs except IJUL (.85%) and EJUL (.89%)). 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.
Return profiles for the Innovator Accelerated ETFs™ – July series, as of 7/01/21
Listing today, July 1st, the four Innovator Accelerated ETFs™ operating on an annual outcome period from July 1, 2021, to June 30, 2022, are below with their return profiles, in addition to the two quarterly resetting products:
| Ticker | Reference Asset | Upside to Cap | Downside | Upside Cap* | Outcome Period | |
|---|---|---|---|---|---|---|
| (XDJL ) | SPY | 2X | 1X | 16 | % | Annual |
| (XBJL ) | SPY | 2X | 1X, 9% Buffer | 9.2 | % | Annual |
| (XDSQ ) | SPY | 2X | 1X | 5.98 | % | Quarterly |
| (XTJL ) | SPY | 3X | 1X | 14.79 | % | Annual |
| (XDQQ ) | QQQ | 2X | 1X | 7.6 | % | Quarterly |
| (QTJL ) | QQQ | 3X | 1X | 19.35 | % | Annual |
* The Caps above are shown gross of each fund’s .79% management fee. “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.
Investors who purchase shares after the start of an outcome period may be exposed to enhanced risk.
For additional information, visit www.innovatoretfs.com.
This article originally appeared on ETFTrends.com.
