Leading the Defined Outcome ETF Revolution™
FOR FINANCIAL PROFESSIONAL USE ONLY
Volatility is a measure of the dispersion of returns around the average. Beta is a measure of the sensitivity of a security's price to changes in a benchmark index.
Risk/return is the relationship between the amount of return gained on an investment and the amount of risk undertaken in that investment.
Max drawdown is the maximum observed loss from a portfolio's peak value to its trough, before a new peak value is attained.
This portfolio builder tool is issued by Innovator Capital Management, LLC, the issuer and responsible entity of the Innovator ETFs. Any person wishing to invest in an Innovator ETFs should obtain a copy of the relevant Product Disclosure Statement from https://www.innovatoretfs.com/ and obtain financial advice in light of their individual circumstances.
The information provided through this tool is general information only and does not take into account any person’s financial circumstances, investment time frame, risk tolerance level and investment goals. Investors should consider the appropriateness of the information taking into account such factors. Diversification does not eliminate the risk of experiencing investment losses. There is no assurance that investing in accordance with the provided tools will provide positive performance over any period of time. This tool is provided for information purposes only and is not a recommendation to make any investment or adopt any investment strategy. Investors should consult with their own advisors before engaging in any transaction.
Investments in Innovator ETFs are subject to investment risk and investors may not get back the full amount originally invested. Future outcomes are inherently uncertain. Actual outcomes may differ materially from those contemplated in any opinions, estimates or other forward-looking statements given through this tool or the portfolio summary. Innovator does not guarantee the performance of any fund or portfolio, or the repayment of capital or any rate of return.
Innovator does not recommend any specific asset allocations and this information should not be considered as an offer or solicitation with respect to the purchase or sale of any security. This tool should not be used as the primary basis for your investment decisions.
Any specific content included herein or relating to the Portfolio Builder provided by Innovator, including descriptions, allocations, fund details and disclosures, may not be altered in any way, and may not be reproduced, disseminated, sold, distributed, published, broadcast, circulated, or commercially exploited in any manner, except as shared by a financial advisor with its client in accordance with the financial advisor's own professional judgment in connection with investment advice provided by such financial advisor to such client and pursuant to an agreement by such financial advisor with its client whereby such financial advisor assumes responsibility for providing investment advisory services to such client, and the financial advisor and its client have read and understood any related disclosure documents.
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.
Shares are bought and sold at market price, not net asset value (NAV), and are not individually redeemable from the fund. NAV represents the value of each share's portion of the fund's underlying assets and cash at the end of the trading day. Market price returns reflect the midpoint of the bid/ask spread as of the close of trading on the exchange where fund shares are listed.
Non-U.S. securities and Emerging Markets are subject to higher volatility than securities of domestic issuers due to possible adverse political, social or economic developments, restrictions on foreign investment or exchange of securities, lack of liquidity, currency exchange rates, excessive taxation, government seizure of assets, different legal or accounting standards, and less government supervision and regulation of securities exchanges in foreign countries.
Investors purchasing shares after an outcome period has begun may experience very different results than funds’ investment objective. Initial outcome periods are approximately 1-year beginning on the funds’ inception date. Following the initial outcome period, each subsequent outcome period will begin on the first day of the month the fund was incepted. After the conclusion of an outcome period, another will begin.
Buffer ETFs only seek to provide shareholders that hold shares for the entire Outcome Period with their respective buffer level against reference asset losses during the Outcome Period. You will bear all reference asset losses exceeding the buffer. Depending upon market conditions at the time of purchase, a shareholder that purchases shares after the Outcome Period has begun may also lose their entire investment. For instance, if the Outcome Period has begun and the Fund has decreased in value beyond the pre-determined buffer, an investor purchasing shares at that price may not benefit from the buffer. Similarly, if the Outcome Period has begun and the Fund has increased in value, an investor purchasing shares at that price may not benefit from the buffer until the Fund's value has decreased to its value at the commencement of the Outcome Period.
While the Fund will not participate in any QQQ or IWM ETF (as applicable) losses over the duration of the Outcome Period as whole, a decrease in the value of the QQQ or IWM ETF share price will cause a decrease in the Fund's NAV while an Outcome Period is ongoing. In the event an Outcome Period has begun, and the QQQ or IWM ETF share price has increased in value, such an increase will be reflected in the value of the Fund's purchased call option on the QQQ or IWM ETF. Accordingly, in the event that the QQQ or IWM ETF share price were to subsequently decrease in value, that decrease would also be reflected in the value of that option, and therefore the Fund's NAV.
If the Outcome Period has begun and the Fund has experienced an accelerated return, an investor purchasing Shares at that price may be subject to losses that exceed any losses of the Underlying ETF for the remainder of the Outcome Period and may have diminished or no ability to experience further accelerated return, therefore exposing the investor to greater downside risks.
Fund shareholders are subject to an upside return cap (the “Cap”) that represents the maximum percentage return an investor can achieve from an investment in the funds’ for the Outcome Period, before fees and expenses. If the Outcome Period has begun and the Fund has increased in value to a level near to the Cap, an investor purchasing at that price has little or no ability to achieve gains but remains vulnerable to downside risks. Additionally, the Cap may rise or fall from one Outcome Period to the next. The Cap, and the Fund’s position relative to it, should be considered before investing in the Fund. The Funds’ website, www.innovatoretfs.com, provides important Fund information as well information relating to the potential outcomes of an investment in a Fund on a daily basis.
Defined Outcome funds which seek a buffer only seek to provide shareholders that hold shares for the entire Outcome Period with their respective buffer level against reference asset losses during the Outcome Period. You will bear all reference asset losses exceeding the buffer. Depending upon market conditions at the time of purchase, a shareholder that purchases shares after the Outcome Period has begun may also lose their entire investment. For instance, if the Outcome Period has begun and the Fund has decreased in value beyond the pre-determined buffer, an investor purchasing shares at that price may not benefit from the buffer. Similarly, if the Outcome Period has begun and the Fund has increased in value, an investor purchasing shares at that price may not benefit from the buffer until the Fund’s value has decreased to its value at the commencement of the Outcome Period.
The Funds' investment objectives, risks, charges and expenses should be considered before investing. The prospectus contains this and other important information, and it may be obtained at innovatoretfs.com. Read it carefully before investing.