Innovator targets record cash allocations with new

• New ETFs designed to offer stock upside up to a certain cap, with 100% downside protection, before fees and expenses.
• The upside potential exceeding that of money market funds or short-term bond funds makes ETFs an attractive option for getting unused cash off the sidelines while maintaining 100% protection.
• Bullish caps are at their highest level in nearly 20 years.
• Launch expands industry’s largest product line 100% Buffered ETF™ and the only one to offer 100% protection over 6-month, 1-year and 2-year performance periods.

WHEATON, Ill., July 01, 2024 (GLOBE NEWSWIRE) — Innovator Capital Management, LLC (Innovator), creator and pioneer of Buffer ETF™ investing, today announced the listing of the Buffer 100% 6-Month, 1-Year and 2-Year ETFs that seek to provide capped upside exposure to the SPDR S&P 500 ETF (SPY), with 100% downside protection.

“We were the first to offer 100% Buffer ETFs and are excited to expand this offering,” said Bruce Bond, co-founder and CEO of Innovator ETFs. “With record amounts invested in money market and short-term bond funds, these ETFs offer investors a way to seek higher yield potential without taking on additional downside risk.”

The highest short-term interest rates in two decades have increased demand for protection strategies as rising rates have pushed caps higher. In 2023 alone, insurance companies sold $261 billion in fixed annuities, up 37% from the previous year.1

“With the Fed hinting that it could cut interest rates later this year, this could be a timely opportunity to take advantage of these compelling levels of upside potential,” said Graham Day, Innovator’s Chief Investment Officer. “In addition to their attractive return profiles, these ETFs offer significant tax alpha potential relative to similar fully protected instruments like CDs, annuities or even cash. As equity markets reach all-time highs, these ETFs offer investors a way to invest with confidence.”

Innovator 100% Buffer™ ETFs are listed on July 1:

To see the complete list of the listing and rebalancing of Innovator ETFs on July 1.

About Innovator

Innovator was founded in 2017 by Bruce Bond and John Southard, founders of the PowerShares ETF family, which has grown to become the fourth largest in the world. The listing of three Innovator Buffer™ ETFs in August 2018 marked the launch of the world’s first Defined Outcome™ ETFs. Innovator is dedicated to providing ETFs with built-in risk management that give investors a high level of predictability about the outcomes of their investments. Today, with over 100 ETFs and $19 billion in assets under management, Innovator is the industry’s leading provider of Defined Outcome™ ETFs.

The Funds have different characteristics from many other traditional investment products and may not be suitable for all investors. For more information about whether an investment in the Fund is suitable for you, please see the “Investor Suitability” section of the prospectus.

The funds are exposed to a number of market risks, including active market risk, permitted holding concentration risk, amortised loss risk, cap change risk, capped upside return risk, correlation risk, liquidity risk, management risk, market maker risk, market risk, non-diversification risk, operational risk, options risk, trading issues risk, upside participation risk and valuation risk. For a detailed list of fund risks, see the prospectus.

There is no assurance that the Funds will be successful in providing the protection sought. If the Outcome Period has begun and the value of the Underlying ETF has increased, any appreciation of the Fund due to increases in the value of the Underlying ETF since the beginning of the Outcome Period will not be protected by the Buffer Margin, and an investor could suffer losses until the Underlying ETF returns to the initial price at the beginning of the Outcome Period.

Shareholders of the Fund are subject to an upside return cap (the “Cap”) which represents the maximum percentage return an investor can achieve from an investment in the Fund for the Outcome Period, before fees and expenses. If the Outcome Period has begun and the value of the Fund has increased to a level close to the Cap, an investor purchasing at that price has little or no ability to realize gains but remains vulnerable to downside risks. In addition, the Cap may increase or decrease 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 Fund’s website, www.innovatoretfs.com, provides important information about the Fund as well as information about the potential results of an investment in a Fund on a daily basis.

These funds are designed to provide one-time exposure to the price performance of the reference asset through a basket of flexible options. Therefore, the ETFs are not expected to move directly in relation to the reference asset during the interim period.

Investors who purchase shares after the start of a performance period may experience results that are significantly different from those intended by the fund’s investment objective. The initial performance periods are approximately 6 months, 1 year and 2 years, from each fund’s inception date. After the initial performance period, each subsequent performance period will begin on the first day of the month the fund was inception. After one performance period ends, another will begin.

Risks associated with FLEX options The Funds will use 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 Funds could suffer significant losses. In addition, FLEX options may be less liquid than standard options. In a less liquid market for FLEX options, the Fund may have difficulty closing out certain FLEX options positions at desired times and prices. The value of FLEX options does not increase or decrease at the same rate as the reference asset and may vary due to factors other than the price of the reference asset.

Investing involves risk. Capital loss is possible. All rights reserved. Innovator ETFs are distributed by Foreside Fund Services, LLC.

The investment objectives, risks, charges and expenses of the funds should be considered carefully before investing. The prospectus and summary prospectus contain this and other important information and can be found at innovatoretfs.com. Read them carefully before investing.

The following marks: Accelerated ETFs®, Accelerated Plus ETF®, Accelerated Return ETFs®, Barrier ETF™, Buffer ETF™, Defined Outcome Bond ETF®, Defined Outcome ETFs™, Defined Protection ETF™, Define Your Future®, Enhanced ETF™, Floor ETF®, Innovator ETFs®, Leading The Defined Outcome ETF Revolution™, Managed Buffer ETFs®, Managed Outcome ETFs®, Step-Up™, Step-Up ETFs™, Target Protection ETF™ and all related names, logos, product and service names, designs and slogans are trademarks of Innovator Capital Management, LLC, its affiliates or its licensors. Use of these terms is strictly prohibited without proper written permission.

Copyright © 2024 Innovator Capital Management, LLC | 800.208.5212

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1 Source: SIFMA

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