Innovator Rolls Out International Buffer ETF

The Innovator International Developed Power Buffer ETF – August (IAUG B-) launched on the NYSE on August 1. The new ETF seeks to track the return of the iShares MSCI EAFE ETF (EFA A), up to 16.16%, while buffering investors against the first 15%. The outcome period is one year.

“Buffer ETFs have seen a resurgence in demand as uncertainty has kept some investors from participating in the market. With Buffer ETFs, investors can participate in upside while mitigating some downside loss,” said VettaFi’s Head of Sector & Industry Research Roxanna Islam.

Many investors are underexposed to international markets. IAUG could potentially help investors gain exposure to international stocks with known levels of built-in risk management.

EFA allocates assets toward developed markets outside of North America, including Japan, Australia, and Western Europe.

Innovator has a lengthy lineup of buffer ETFs. Innovator’s suite has upside caps on a fund’s performance that are adjusted with every annual reset. Meanwhile, the funds provide downside protection that does not vary from year to year.

The buffer ETFs rely on flexible exchange (FLEX) options to achieve their objectives rather than holding their reference assets. They generally reset annually, and investors must hold them for the entire outcome period to see the results the issuer has outlined.

See more: Innovator Adds 11th ‘Power Buffer’ Developed Markets ETF

Last month, the fund launched the Innovator International Developed 10 Buffer ETF (IBUF C+). Like IAUG, this ETF tracks EFA, with an upside cap and downside protection.

Innovator launched the industry’s first 100% buffer ETF in July 2023. The series is set to grow to more than 20 ETFs, spanning six-month, one-year, and two-year outcome periods.

Innovator’s largest by assets under management is the $1 billion +Innovator U.S. Equity Power Buffer ETF – January+ (PJAN A).

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