Innovator Expands Dual Directional ETF Lineup Following Market Demand

Core Viewpoint - Innovator Capital Management has expanded its Dual Directional Buffer ETFs™, which aim to provide potential positive returns in both rising and falling equity markets over a one-year outcome period [1]. Group 1: New ETF Features - The newly launched ETFs offer unique characteristics that may not be suitable for all investors, emphasizing the need for investor suitability assessments [2]. - The expansion allows for monthly listings, providing investors with more opportunities to adapt to changing market conditions [4]. Group 2: Fund Mechanics - The Innovator Equity Dual Directional 15 Buffer ETF™ can yield a 15% return even if the market declines by 15%, and only experiences a 1% loss if the market drops by 16% [5]. - Defined Outcome ETFs™ utilize options to replicate the performance of underlying assets, while Dual Directional Buffer ETFs™ add an extra layer of options to generate positive returns in negative markets, albeit with capped upside potential [6]. Group 3: Market Strategy - The unique return profile of the Dual Directional ETFs is designed for markets where 75% of one-year S&P 500 corrections fall between 0% and -15% [7]. - In positive markets, these ETFs track the SPDR® S&P 500® ETF Trust (SPY) returns 1:1 up to a predetermined cap, while in negative markets, they deliver inverse SPY returns 1:1, up to an inverse cap [7]. Group 4: Fund Overview - The Innovator Equity Dual Directional 10 Buffer ETF™ has an upside cap of 12.65% and a buffer level of 10%, while the Innovator Equity Dual Directional 15 Buffer ETF™ has an upside cap of 9.30% and a buffer level of 15% [8]. - Both funds provide known upside potential and built-in buffers prior to investment, enhancing investor clarity [9]. Group 5: Company Background - Innovator Capital Management has established itself as a leader in the Defined Outcome ETF space, with over 150 offerings and more than $27 billion in assets under management as of July 31, 2025 [11].