{"id":469702,"date":"2021-04-01T08:58:17","date_gmt":"2021-04-01T12:58:17","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=469702"},"modified":"2021-04-01T08:58:17","modified_gmt":"2021-04-01T12:58:17","slug":"innovator-etfs-lists-the-first-accelerated-etfs-defined-outcome-investing-tools-for-wealth-accumulation","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/innovator-etfs-lists-the-first-accelerated-etfs-defined-outcome-investing-tools-for-wealth-accumulation\/","title":{"rendered":"Innovator ETFs Lists the First Accelerated ETFs\u2122, Defined Outcome Investing Tools for Wealth Accumulation"},"content":{"rendered":"
\n

\n
\n Accelerated ETFs<\/em>
\n <\/strong>
\n
\n \u2122<\/em>
\n <\/strong>
\n
\n seek to offer a multiple (2x or 3x) of the upside of SPY or QQQ, to a cap, with approximately single exposure to the downside, with or without a buffer, over a defined outcome period<\/em>
\n <\/strong>
\n \n <\/p>\n

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\n Funds seek to <\/em>
\n <\/strong>
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\n enhance investors\u2019 equity performance potential to a cap without taking on additional downside risk<\/em>
\n <\/strong>\n <\/p>\n

CHICAGO, April 01, 2021 (GLOBE NEWSWIRE) — Innovator Capital Management<\/a>, LLC (Innovator) today announced the listing of a new suite of accumulation-oriented Defined Outcome ETFs, the Innovator Accelerated ETFs\u2122<\/a>, the world\u2019s first ETFs to seek to offer a multiple of the upside return of a reference asset, up to a cap, with approximately single exposure on the downside for investors who hold shares for an entire outcome period. Part of Innovator\u2019s Defined Outcome ETF\u2122 family<\/a>, the Accelerated ETFs\u2122<\/a> will offer advisors the ability to accelerate a portfolio\u2019s equity performance to a cap over a one-year or three-month outcome period. The Accelerated ETFs\u2122 reflect Innovator\u2019s continued dedication to disrupting the asset management, structured products and insurance industries for the benefit of advisors and the end-investor, and their launch represents another ETF industry milestone.<\/p>\n

Listing today, April 1st<\/sup>, on the Cboe, the initial six Innovator Accelerated ETFs\u2122 are below with their return profiles:<\/p>\n\n\n\n\n\n\n\n\n
Ticker<\/td>\nReference
Asset<\/td>\n		Upside to
Cap<\/td>\n		Downside<\/td>\nUpside Cap*<\/td>\nOutcome
Period<\/td>\n<\/tr>\n
\n XDAP<\/a>\n <\/td>\nSPY<\/td>\n2X<\/td>\n1X<\/td>\n17.16<\/td>\n%<\/td>\nAnnual<\/td>\n<\/tr>\n
\n XBAP<\/a>\n <\/td>\nSPY<\/td>\n2X<\/td>\n1X, 9% Buffer<\/td>\n10.20<\/td>\n%<\/td>\nAnnual<\/td>\n<\/tr>\n
\n XDSQ<\/a>\n <\/td>\nSPY<\/td>\n2X<\/td>\n1X<\/td>\n6.70<\/td>\n%<\/td>\nQuarterly<\/td>\n<\/tr>\n
\n XTAP<\/a>\n <\/td>\nSPY<\/td>\n3X<\/td>\n1X<\/td>\n16.20<\/td>\n%<\/td>\nAnnual<\/td>\n<\/tr>\n
\n XDQQ<\/a>\n <\/td>\nQQQ<\/td>\n2X<\/td>\n1X<\/td>\n9.50<\/td>\n%<\/td>\nQuarterly<\/td>\n<\/tr>\n
\n QTAP<\/a>\n <\/td>\nQQQ<\/td>\n3X<\/td>\n1X<\/td>\n21.30<\/td>\n%<\/td>\nAnnual<\/td>\n<\/tr>\n<\/table>\n

\n * The Caps above are shown gross of each fund\u2019s .79% management fee. \u201cCap\u201d refers to the<\/em>
\n maximum potential return, before fees and expenses and any shareholder transaction fees and any extraordinary expenses, if held over the full Outcome Period. \u201cBuffer\u201d refers to the amount of downside protection the fund seeks to provide, before fees and expenses, over the full Outcome Period. Outcome Period is the intended length of time over which the defined outcomes are sought. Upon fund launch, the Caps can be found on a daily basis via <\/em>
\n
\n www.innovatoretfs.com<\/em>
\n <\/a>
\n .<\/em>
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\n
\n Investors who purchase shares after the start of an outcome period may be exposed to enhanced risk.<\/em>
\n <\/strong>\n <\/p>\n

\u201cThe Accelerated ETFs\u2122<\/a> have been an essential part of the plan for our Defined Outcome ETF lineup<\/a> since day one, and we think many advisors and ETF investors share our excitement about finally having them in the market,\u201d said Bruce Bond, CEO of Innovator ETFs<\/a>. \u201cThe Accelerated ETFs\u2122 seek to enhance investors\u2019 equity performance potential to a cap without taking on additional downside risk. This is an accumulation-oriented investing product concept we\u2019ve been working diligently on since 2017 when we filed for our first Buffer ETFs. And now, for the first time ever in an ETF, investors who hold shares for an entire outcome period will have access to potentially double or triple the upside of SPY or QQQ, to a cap, with approximately single exposure on the downside. This means that in instances when SPY or QQQ returns less than the cap over the outcome period and the investor holds the respective Accelerated ETF\u2122 for the entire outcome period, they will have the potential to outpace the respective market.\u201d<\/p>\n

\u201cGiven the significant allocations to similar asymmetric accelerated or enhanced equity return strategies in less advantageous product structures, we think the Accelerated ETFs\u2122<\/a> will really resonate with advisors who have been attracted to these types of investments but were deterred by the illiquidity, opacity, high relative costs and credit risk of structured notes,\u201d said John Southard, CIO<\/a> of Innovator ETFs. \u201cWe can\u2019t predict the future but, if history is a guide, Large-cap and Growth domestic equities are very unlikely to best the annualized returns they\u2019ve produced over the recent decade. With valuations so rich and suppressed rates starting to climb, Wall Street strategists are widely forecasting a low to moderate growth environment for domestic stocks in the mid- to long-term outlook. The Accelerated ETFs\u2122 seek to provide the potential to enhance returns in such lower-growth environments, and could help to support investors\u2019 accumulation goals,\u201d said John Southard, CIO<\/a> of Innovator ETFs.<\/p>\n

Bond added, \u201cWith the launch of Innovator Accelerated ETFs\u2122, investors will have the ability to build diversified portfolios with Defined Outcome ETFs\u2122. Offering both annual and quarterly outcome periods provides advisors with greater allocation flexibility. Given their potential to enhance equity returns, we believe the Accelerated ETFs\u2122 will prove to be powerful tools for wealth accumulation while our Defined Outcome Buffer ETFs\u2122 can provide effective equity risk management and function as alternatives to core bond allocations that are getting whacked by historically low yields, a steepening yield curve and the heightened potential for elevated inflation.\u201d<\/p>\n

Today, Innovator lists the following Accelerated ETFs\u2122 based on the Large-cap U.S. equity market through options on SPY (the SPDR S&P 500 ETF Trust): the Innovator U.S. Equity Accelerated ETF\u2122 \u2013 April (XDAP); the Innovator U.S. Equity Accelerated 9 Buffer ETF\u2122 \u2013 April (XBAP); the Innovator U.S. Equity Accelerated ETF\u2122 \u2013 Quarterly (XDSQ); as well as the Innovator U.S. Equity Accelerated Plus ETF\u2122 \u2013 April (XTAP).<\/p>\n