Innovator Expands Defined Protection 100% Buffer ETF™ Suite with AAPR Following Market Demand

  • ETF issuer behind the world’s largest lineup of Defined Outcome ETFs™ expands its 100% Buffer ETF™ suite by listing AAPR with an 18.00% upside cap over the outcome period.
  • Innovator continues to grow its Defined Income ETF offerings with the launch of two Buffer Income ETFs designed to offer high defined distribution rates with built-in risk management.
  • On April 1, Innovator offers 25 different opportunities to lock in refreshed payoff profiles across a range of strategies and market segments.

CHICAGO, April 01, 2024 (GLOBE NEWSWIRE) -- Innovator Capital Management, LLC (Innovator), pioneer and provider of the industry’s largest lineup of Defined Outcome ETFs, today announced the launch of three Defined Outcome ETFs, expanding the firm’s existing lineup. The strategies include two Defined Income ETFs, and the third in its suite of Defined Protection ETFs.

Innovator’s newly launched Equity Defined Protection ETF (AAPR) is the third in its suite of Defined Protection ETFs, which has grown to more than $300 million in AUM since inception. The ETFs are designed to provide investors with market exposure up to a cap, and a 100% buffer against losses in the SPDR S&P 500 ETF, over a two-year outcome period, before fees and expenses. Unlike many insurance or bank products offering similar exposures, the Defined Protection ETFs are structured without credit risk, while also providing investors with valuable tax efficiency. Innovator intends to launch a new Defined Protection ETF at the start of each calendar quarter until the suite of eight ETFs is complete.

While investors continue to hold trillions of dollars on the sidelines in cash, Defined Protection ETFs are designed to provide defined exposure to the market’s upside potential, and defined protection against 100% of losses, over the outcome period.

Innovator is also announcing the starting caps and defined distribution rates for the 22 ETFs resetting in April.

The timely reset of these payoff profiles is occurring as equity markets are not only sitting at all-time highs, but are also hovering around the high end of their historical valuation range. In addition to a contentious Presidential election later this year, investors are also grappling with the uncertainty swirling around wars in Europe and the Middle East, and the Fed’s ongoing efforts to bring inflation under control without triggering an economic downturn.

“In the face of so much uncertainty, we’re finding that advisors and their clients are resonating with the predictability that Defined Outcome ETFs are designed to offer,” said Graham Day, CIO at Innovator ETFs. “Markets often climb a wall of worry; the potential for the market to fall doesn’t negate the potential for it to keep climbing. This is precisely the tension that Defined Outcome ETFs are built to address.”

The full list of ETFs resetting or listing on April 1 is below:

New ETFs
Downside ProfileOutcome PeriodCap or Defined
Dist. Rate*
AAPREquity Defined ProtectionSPY100% Buffer24 months18.00%
HAPRPremium Income 9 BufferSPY9% Buffer12 months7.22%
LAPRPremium Income 15 BufferSPY15% Buffer12 months6.44%
Rebalancing ETFs
Downside ProfileOutcome PeriodCap or Defined
Dist. Rate*
EALTU.S. Equity 5 to 15 BufferSPY10% (-5% to -15%) Buffer3 months8.06%
ZALTU.S. Equity 10 BufferSPY10% Buffer3 months3.64%
BALTDefined Wealth ShieldSPY20% Buffer3 months2.94%
BAPRU.S. Equity BufferSPY9% Buffer12 months18.32%
PAPRU.S. Equity Power BufferSPY15% Buffer12 months14.46%
UAPRU.S. Equity Ultra BufferSPY30% (-5% to -35%) Buffer12 months15.22%
KAPRU.S. Small Cap Power BufferIWM15% Buffer12 months18.45%
NAPRGrowth-100 Power BufferQQQ15% Buffer12 months16.63%
EAPREmerging Markets Power BufferEEM15% Buffer12 months16.62%
IAPRIntl Developed Power BufferEFA15% Buffer12 months16.80%
TFJL20+ Year Treasury Bond 5 FloorTLT5% Floor3 months14.85%
TSLHHedged TSLA StrategyTesla, Inc10% Floor3 months10.25%
XBAPU.S. Equity Accelerated 9 BufferSPY2x/1x + 9% Buffer12 months12.86%
XDAPU.S. Equity AcceleratedSPY2x/1x12 months17.40%
XTAPU.S. Equity Accelerated PlusSPY3x/1x12 months15.96%
QTAPGrowth Accelerated PlusQQQ3x/1x12 months20.16%
XDSQU.S. Equity AcceleratedSPY2x/1x3 months6.48%
XDQQGrowth AcceleratedQQQ2x/1x3 months8.76%
APRDPremium Income 10 BarrierSPX10% Barrier12 months8.50%
APRHPremium Income 20 BarrierSPX20% Barrier12 months7.36%
APRJPremium Income 30 BarrierSPX30% Barrier12 months6.49%
APRQPremium Income 40 BarrierSPX40% Barrier12 months5.86%

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 Funds is right for you, please see “Investor Suitability” in the prospectus.

The funds only seek to provide their investment objective, which is not guaranteed, over the course of an entire outcome period. Investors who purchase shares after or sell shares before the end of an outcome period will experience very different outcomes than the funds seek to provide.

Buffer ETFs
You will bear all reference asset losses exceeding the buffer. 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.

The Funds seek to provide shareholders that hold Shares for the entire Outcome Period with a Buffer against the Underlying ETF losses during the Outcome Period. The Funds’ shareholders will bear all Underlying ETF losses exceeding the Buffer on a one-to-one basis. If the Outcome Period has begun and the Funds have 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 Funds have increased in value, an investor purchasing Shares at that price may not benefit from the Buffer until the Funds’ values have decreased to their value at the commencement of the Outcome Period.

Income ETFs
The Funds seek to provide shareholders distribution payments (the “Defined Distributions”) that represent a U.S. dollar amount per Share payable by the Fund over an Outcome Period. Defined Distributions are comprised of (i) the income generated by the Fund’s investments in U.S. Treasuries with maturity dates on or about each Distribution Date, the majority with maturities on or about the final Distribution Date at the conclusion of the Outcome Period, and (ii) the premiums generated from the Fund’s FLEX Options positions that expire at the end of each Outcome Period. The Fund will establish an annualized payment rate (the “Defined Distribution Rate”) based upon the Fund’s net asset value (“NAV”) at the commencement of the Outcome Period, which is the percentage of Defined Distributions per Share over the Outcome Period.

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

Investors purchasing shares after an outcome period has begun may experience very different results than funds’ investment objective. Following the initial outcome period, each subsequent outcome period will begin on the first day of the month the funds were incepted. After the conclusion of an outcome period, another will begin.

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.

FLEX Options Risk The Funds 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.

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 the trademarks of Innovator Capital Management, LLC, its affiliates or licensors. Use of these terms is strictly prohibited without proper written authorization.

Investing involves risk, including the possible loss of principal.

The Funds’ investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus and summary prospectus contain this and other important information, and may be obtained at Read it carefully before investing.

Innovator ETFs are distributed by Foreside Fund Services, LLC.
Copyright © 2024 Innovator Capital Management, LLC

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