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Innovator Announces Upside Cap Ranges for March Series of S&P 500 Buffer ETFs

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Innovator Capital Management, LLC (Innovator) announced last week that the anticipated upside cap ranges and return profiles for the March Series of Innovator S&P 500 Buffer ETFs™, are scheduled to begin trading March 2, 2020 on the Cboe (Chicago Board Options Exchange).

Anticipated return profiles for the March Series of S&P 500 Buffer ETFs, as of 2/21/20

  Ticker     Name   Buffer Level    Cap Range*   Outcome Period
BMAR  Innovator S&P 500
Buffer ETF™
  9.00%    11.22 – 13.61%   12 months
3/1/20 – 2/28/21
PMAR  Innovator S&P 500
Power Buffer ETF™
  15.00%     7.51 – 8.71%   12 months
3/1/20 – 2/28/21
 UMAR  Innovator S&P 500
Ultra Buffer ETF™
  30.00%
(-5% to -35%)
   7.07 – 7.87%   12 months
3/1/20 – 2/28/21

* The Cap Ranges above are based on the highest and lowest Cap as illustrated by the Funds’ strategy from 1/22/20 – 2/19/20 and are shown gross of the 0.79% management fee. The actual Cap for each Fund will be set at the beginning of the Outcome Period, and is dependent upon market conditions at that time. Periods of high market volatility could result in higher caps, and lower volatility could result in lower caps. As a result, the Cap set by each Fund may be higher or lower than the Cap Range. “Cap” refers to the maximum potential return, before fees and expenses and any shareholder transaction fees and any extraordinary expenses, if held over the full Outcome Period. “Buffer” 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 www.innovatoretfs.com. BMAR, PMAR, & UMAR are not yet available for investment. Past performance is no guarantee of future results.

Innovator Defined Outcome ETFs – Benefits to Advisors

  • Pioneer and Creator of Defined Outcome ETFs with over $2 billion AUM across suite
  • Tax efficient exposure to five broad benchmark indexes (S&P 500, NASDAQ 100, Russell 2000, EAFE, EEM)
  • Lowest cost available1
  • Monthly issuance with three buffer levels (9,15, or 30%)
  • Only sponsor with a proven track record of successful Outcomes2

Innovator Defined Outcome ETFs seek to provide a defined exposure to a broad market index (such as the S&P 500, Nasdaq 100, Russell 2000, MSCI EAFE, and MSCI Emerging Markets) where the downside buffer level, upside growth potential to a Cap, and Outcome Period are all known, prior to investing. The ETFs reset annually and can be held indefinitely. Innovator Defined Outcome ETFs, with over $2 billion in AUM as of February 20, 2020, are among the fastest-growing new categories of ETFs in the market today.

Defined Outcome ETF Webinars and Videos
Innovator is expanding advisor education around Defined Outcome ETF investing, and has produced a series of  webinars available for replay posted on its website using the following link: http://www.innovatoretfs.com/webinars.

Listen to the Innovator Defined Outcome ETFs 101 explainer video by clicking here.

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.

The Innovator Defined Outcome Suite of ETFs

S&P 500:

Innovator S&P 500 Buffer ETFs™ (Cboe: BAPR, BJUN, BJUL, BAUG, BSEP, BOCT, BNOV, BDEC, BJAN, BFEB): Designed to track the price return of the S&P 500 (up to a predetermined Cap) while buffering investors against the first 9% of losses over the Outcome Period, before fees and expenses.

Innovator S&P 500 Power Buffer ETFs™ (Cboe: PAPR, PJUN, PJUL, PAUG, PSEP, POCT, PNOV, PDEC, PJAN, PFEB): Designed to track the price return of the S&P 500 (up to a predetermined Cap) while buffering investors against the first 15% of losses over the Outcome Period, before fees and expenses.

Innovator S&P 500 Ultra Buffer ETFs™ (Cboe: UAPR, UJUN, UJUL, UAUG, USEP, UOCT, UNOV, UDEC, UJAN, UFEB): Designed to track the price return of the S&P 500 (up to a predetermined Cap) while buffering investors against a decline of 30% of losses over the Outcome Period, from -5% to -35%, before fees and expenses. Investors are exposed to loss between 0% and 5% and over 35% over the Outcome Period, before fees and expenses.

Nasdaq 100:

Innovator Nasdaq-100 Power Buffer ETF™ (Cboe: NOCT, NJAN): Designed to track the price return of the Nasdaq 100 Index (up to a predetermined Cap) while buffering investors against the first 15% of losses over the Outcome Period, before fees and expenses.

Russell 2000:

Innovator Russell 2000 Power Buffer ETF™ (Cboe: KOCT, KJAN): Designed to track the price return of the Russell 2000 Index (up to a predetermined Cap) while buffering investors against the first 15% of losses over the Outcome Period, before fees and expenses.

MSCI EAFE:

Innovator MSCI EAFE Power Buffer ETF™ (NYSE: IJUL, IJAN): Designed to track the price return of the MSCI EAFE Index (up to a predetermined Cap) while buffering investors against the first 15% of losses over the Outcome Period, before fees and expenses.

MSCI Emerging Markets:

Innovator MSCI Emerging Markets Power Buffer ETF™ (NYSE: EJUL, EJAN): Designed to track the price return of the MSCI Emerging Markets Index (up to a predetermined Cap) while buffering investors against the first 15% of losses over the Outcome Period, before fees and expenses.

Interim Period Shareholders

Unlike structured notes, which offer limited liquidity, Innovator Defined Outcome ETFs trade throughout the day on an exchange, like a stock. As a result, investors purchasing shares of a Fund after its launch date may achieve a different payoff profile than those who entered the Fund on day one. Innovator recognizes this as a benefit of the Funds and provides a web-based tool that allows investors to know, in real-time throughout the trading day, their potential defined outcome return profile before they invest, based on the current ETF price and the Outcome Period remaining. Innovator’s web tool can be accessed at http://www.innovatoretfs.com/define.

About Innovator Defined Outcome ETFs

Each Innovator Defined Outcome ETF seeks to provide a defined exposure to a broad market index (such as the S&P 500, Nasdaq 100, Russell 2000, MSCI EAFE, and MSCI EM) where the downside buffer level, upside growth potential to a Cap, and Outcome Period are all known, prior to investing. Innovator recently began expanding its suite of S&P 500 Buffer ETFs into a monthly series to provide investors more opportunities to purchase shares as close to the beginning of their respective Outcome Periods as possible.

Investors can purchase shares of a previously listed Defined Outcome ETF throughout the entire Outcome Period, obtaining a current set of defined outcome parameters, which are disclosed daily through a web tool available at: http://innovatoretfs.com/define/.

Innovator is focused on delivering defined outcome based solutions inside the benefit-rich ETF wrapper, retaining many of the features that have contributed to the success of structured products3 (e.g., downside buffer levels, upside participation, defined outcome parameters), but with the added benefits of transparency, liquidity and lower costs afforded by the ETF structure.

ETF Construction

Each Fund will hold a portfolio of custom exchange-traded FLEX Options that have varying strike prices (the price at which the option purchaser may buy or sell the security, at the expiration date), and the same expiration date (approximately one year). The layering of these FLEX Options with varying strike prices provides the mechanism for producing a Fund’s desired outcome (i.e. Cap or buffer). Each Fund intends to roll options components annually, on the last business day of the month associated with each Fund.

The ETFs are subadvised by Milliman Financial Risk Management LLC (Milliman FRM), a global leader in financial risk management and one of the largest ETF sub advisors. Milliman FRM was also instrumental in the design of the Cboe S&P 500 Target Outcome Indexes, which the Innovator Defined Outcome S&P 500 Buffer ETFs are benchmarked against.

Although each Fund seeks to achieve the defined outcomes stated in its investment objective, there is no guarantee that it will do so. The returns that the Funds seek to provide do not include the costs associated with purchasing shares of the Fund and certain expenses incurred by the Fund.

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