Innovative ETFs raise serious assets for structured product ETFs

From a standing start in August of 2018, Innovator Capital Management has raised USD1.6 billion into its Defined Outcome ETFs, designed to offer investors exposure to an index with a cap and a downside buffer limiting potential losses to minus 9 per cent, 15 per cent or 30 per cent.

The outcome period for the products is roughly one year, at which point each ETF resets and the charges for these structured products within an ETF wrapper are 0.79 per cent in total.
 
The range is the brainchild of Bruce Bond, Innovator Capital Management’s co-founder and CEO and former co-founder of PowerShares Capital Management in 2003. Innovator launched in 2014, with Bond admitting that he hadn’t really planned to return to the ETF industry after selling up his first company. “But the impetus behind creating the Defined Outcome products was to bring true risk control and buffered exposures to markets in a way that people didn’t have access to,” Bond says.

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