Premium Income Barrier ETFs™
Introducing the first income-focused Defined Outcome ETFs™, seeking both high income and a protective barrier against loss.
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There is no guarantee that the Fund will be successful in its attempt to implement the barrier; a shareholder may lose its entire investment.
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 Fund is right for you, please see “Investor Suitability” in the prospectus. Unlike funds that utilize defined outcome investment strategies, the funds do not provide a buffer against all underlying ETF losses or a floor that provides a maximum amount of underlying ETF losses, which could cause loss of the entire investment prior to consideration of any defined distribution payments.
Defined Distribution Rates & Barrier Levels
January Series April Series July Series October Series
Anticipated 1/1/24! 10.11% Distribution Rate
10% Barrier
9.20% Distribution Rate
10% Barrier
9.96% Distribution Rate
10% Barrier
Anticipated 1/1/24! 8.73% Distribution Rate
20% Barrier
8.21% Distribution Rate
20% Barrier
8.64% Distribution Rate
20% Barrier
Anticipated 1/1/24! 7.32% Distribution Rate
30% Barrier
7.25% Distribution Rate
30% Barrier
7.43% Distribution Rate
30% Barrier
Anticipated 1/1/24! 6.30% Distribution Rate
40% Barrier
6.51% Distribution Rate
40% Barrier
6.56% Distribution Rate
40% Barrier
The Defined Distribution Rate is likely to rise or fall from one Outcome Period to the next. Account fees will lower the Defined Distribution Rate received by shareholders.

How Barrier ETFs Work
Barrier ETFs consist of a package of S&P 500 options and U.S. Treasuries. Barrier refers to a type of Defined Outcome which provides current income with downside protection to a set level. After the level is breached, the investor takes on the full downside of the reference asset.
Download Mechanics Sheet
For illustrative purposes only. Does not represent or predict fund performance.
Source: Bloomberg, as of 2/9/2024
Yield to maturity is the return of a bond if held to its maturity date. Core bonds, investment grade bonds, and high yield bonds are measured by the Bloomberg U.S. Aggregate Bond Index, the Bloomberg U.S. Corporate Index, and the Bloomberg U.S. Corporate High Yield Index, respectively. You cannot invest directly in an index. The Barrier ETF distribution rate, established at the commencement of each Outcome Period, is an annualized payment rate that is achievable through the premium received from sold option contracts (as described further below) and the Fund’s investments in U.S. Treasuries. The Distribution Rate is not guaranteed.
The Defined Distribution Rate shown is before fees, which have the result of a lower distribution. There are material differences between traditional fixed income asset classes and the Innovator Barrier ETFs, which seek to provide a high level of income. The NAV of Barrier ETFs is tied to the underlying options on the S&P 500, a broad-based measure of the large cap U.S. equity market. The value of fixed income products is tied to the value of the fixed income instruments the products hold. Within a corporate capital structure, equity is generally subordinate to fixed income assets and, as such, carries a higher level of risk than fixed income assets.
By seeking a built-in protective barrier, low interest-rate risk, and high income, Premium Income Barrier ETFs™ have the potential to make a meaningful and diversifying return contribution to a fixed-income allocation.
Seeking to deliver high-level of income and barrier against losses
Innovator Barrier ETFs are innovative products that seek to provide a level of income and downside risk management, known to investors before they invest. These differ from traditional ETFs whose income and downside levels are unknown. The ETFs offer exposure to a reference asset, over 12 months, with a defined level of income and a downside barrier.
Premium Income Barrier ETF™ Features
Quarterly Distribution
The Barrier ETFs™ seek to distribute a defined rate of income at the end of each calendar quarter.
Levels of Risk Management
Investors can choose from four different Barrier levels to suit their individual risk tolerance levels.
12-Month Outcome Period
At the end of each period, the ETFs lock in a new distribution rate and reset their barrier.
Product Brief
How They Work
Potential Outcome Analyzer
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Investment Objective: The Funds seeks to provide investors, over a 1 year period (outcome period), with an investment that provides a high level of income through a Defined Distribution Rate and that is not subject to any losses experienced by the U.S. Equity Index that are at or below a the respective Barrier (10,20,30,40) and is subject to initial losses experienced by the U.S. Equity Index beginning at the Barrier and to the full extent of U.S. Equity Index losses on a one-to-one basis beginning after the barrier threshold has been crossed.
The distribution rate sought by the Funds are based upon a rate that is comprised of the income generated by the U.S. Treasuries and the premiums received from the Fund selling FLEX Options.
Over each Outcome Period, shareholders will also be subject to U.S. Equity Index losses that are based upon an investment “barrier,” which is an investment strategy whereby a payoff depends on whether an underlying asset has breached a predetermined performance level. The Funds seek to provide a pre-determined barrier at [respectively 10, 20, 30, or 40]% of U.S. Equity Index losses for each Outcome Period (the “Barrier”) by selling FLEX Options that reference the U.S. Equity Index for each Outcome Period (the “Barrier Options”). There is no guarantee that the Fund will be successful in its attempt to implement the Barrier. At the commencement of the new Outcome Period, the Fund will sell new Barrier Options with an expiration date of approximately one year and invest in U.S Treasuries with a maturity date that aligns with the expiration of the new Outcome Period.
Fund shareholders also will be subject to all losses experienced by the U.S. Equity Index if the U.S. Equity Index experiences losses that exceed the Barrier at the end of the Outcome Period. If at the end of the Outcome Period the U.S. Equity Index has experienced a positive price return, or price return losses that are less than the Barrier, the Fund is designed to provide returns that equal the Distribution Rate. However, if the U.S. Equity Index has decreased in value below the Barrier at the end of the Outcome Period, the Fund's investments will generate Outcomes that equal the Distribution Rate less the entirety of the U.S. Equity Index's losses over the course of the Outcome Period. The Fund will not benefit from any increases in the U.S. Equity Index over the course of an Outcome Period but is subject to the possibility of significant losses experienced by the U.S. Equity Index if the value of the U.S. Equity Index drops below the Barrier at the end of the Outcome Period. An investor could lose its entire investment. The Fund will not receive or benefit from any dividend payments made by the constituents of the U.S. Equity Index.
A shareholder may lose its entire investment. In the event an investor purchases Shares after the commencement of the Outcome Period or sells Shares prior to the expiration of the Outcome Period, the Barrier that the Fund seeks to provide may not be available. In addition, the operationality of the Barrier is such that the Fund may experience dramatic changes in value of its NAV at the end of the Outcome Period, even if the changes in the U.S. Equity Index are minimal. If the U.S. Equity Index's value is at or near the Barrier at the end of the Outcome Period, small changes in the value of the U.S. Equity Index could result in dramatic changes in the value of the Barrier Options and therefore the Fund's NAV. Investors should understand these risks before investing in the Fund.
The Outcomes may only be realized by investors who continuously hold Shares from the commencement of the Outcome Period until its conclusion. Investors who purchase Shares after the Outcome Period has begun or sell Shares prior to the Outcome Period's conclusion may experience investment returns very different from those that the Fund seeks to provide.
The Funds' website,, provides important Fund information as well information relating to the potential outcomes of an investment in a Fund on a daily basis.
The Fund uses its net assets (including the premiums received by selling Barrier Options) to purchase U.S. Treasuries that expire at the end of the Outcome Period. The U.S. Treasuries are entitled to an interest rate, which when added to the premiums received for selling Barrier Options, produce the Distribution Rate. The Distribution Rate is distributed to shareholders in Fund Distributions. The amount of the Fund Distributions is dependent, in part, upon the income received from the U.S. Treasuries, which is not guaranteed. If the U.S. Treasuries fail to pay income or pay less income than anticipated, the Distribution Rate will not be obtained, and a Fund Distribution will be less than anticipated.
Additional Risks. 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 Fund 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 Funds' investment objectives, risks, charges and expenses should be considered carefully before investing. The prospectus contains this and other important information, and it may be obtained at Read it carefully before investing.
Innovator ETFs are distributed by Foreside Fund Services, LLC.