Innovator ETFs: Buffer ETFs
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INVESTOR GUIDE
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ADDITIONAL RESOURCES
BUFFER ETF™ PAYOFF PROFILE
Upside Cap: The maximum return the fund can earn over the full outcome period.
Downside Buffer: The amount of reference asset loss that the fund seeks to buffer against over the full outcome period.
Outcome Period: The period of time over which the upside cap and downside buffer are in effect. The cap and buffer reset at the end of each outcome period.
Reference Asset: The market in which the Buffer ETF™ pursues its defined investment outcome.
The graph is provided to illustrate the outcomes that the Fund seeks to provide based upon the performance of the reference asset. Shareholders may experience losses greater than 85%, including loss of their entire investment. There is no guarantee that these outcomes will be achieved over the course of the outcome period.
REFERENCE ASSET
The underlying ETF or Index.
SPY
QQQ
IWM
EFA
EEM
BUFFER LEVEL
The amount of loss the ETF is designed to mitigate.
9%
10%
15%
20%
30%
100%
OUTCOME PERIOD
The amount of time over which the defined investment outcome is realized
3-mo
6-mo
1-yr
2-yr
PRODUCT TABLE →
How do they work?
Set upside potential - limit downside exposure.
Reference Asset Participation
The first layer involves buying a deep in the money call option on the reference asset.
Downside Buffer
The second layer is a put spread. Together the long and short put produce the downside buffer of 15%.
Upside Cap
The third layer consists of selling a call. The call is sold as far out of the money as possible, while still generating enough premium to cover the cost of the buffer. The sale is what creates the upside cap.
EDUCATION CENTER →
Why use them?
Objective Risk Management
PROBLEM: Equity market uncertainty and bond market volatility pose fundamental challenges to the traditional 60/40 blend.
POTENTIAL SOLUTION: Buffer ETFs™ may help investors reduce equity beta exposure, or offer an equity-based defensive alternative to low yields, without the credit or interest-rate risk.
Cost Efficiency
Tax Efficiency¹
Intra-day Liquidity
Transparency
No Credit Risk
INVESTMENT INSIGHTS →
Timely Ideas
Where Do They Fit?

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ADDITIONAL RESOURCES
Buffer ETFs™ Basics
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Why Buffer ETFs™ ?
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How Buffer ETFs™ Work
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