First ETF Just Launched Offering Protection Against 100% Losses in the Fund's Shares

• On Tuesday, Innovator Capital Management launched a buffer ETF with 100% fall protection.
• The price will not fall below the entry point of the fund to the market.
• The fund trades under the ticker symbol TJUL and will track the S&P 500 for two years.
• “Our goal is for TJUL to provide our clients with the ability to stay in the marketplace with significant built-in risk management.”

The Innovator Equity Defined Protection ETF, the first exchange-traded fund designed to provide 100% fall protection, was launched on Tuesday.

Innovator Capital Management said it will cap SPDR S&P 500 ETF Trust (SPY) growth at 16.62% before fees and offer a 100% pre-fee buffer against SPY losses between July 18, 2023 and June . 30, 2025.

Innovator charges an annual fee of 0.79% for the ETF that trades under the ticker TJUL.

“We keep hearing that investors are looking for a way to get back into the market without sitting on the sidelines, but the level of risk is simply too high,” said Graham Day, chief investment officer of Innovator. “Our goal is for TJUL to provide our clients with the ability to stay in the marketplace with significant built-in risk management.”

Innovator also stated that there is no guarantee that the fund will successfully provide protection, noting that if the ETF increases in value after launch, then any appreciation in value will not be protected and the investor may suffer losses until the ETF returns to its original starting price.

The company offers more than 50 buffer funds, and Innovator said its pool of funds has more than $13 billion in assets under management.

Also known as buffer ETFs or fixed income funds, they are seen as an alternative to insurance products such as fixed income annuities.

The innovator said the ETF structure delivers more value to investors due to high liquidity, no minimum purchase requirements, and no withdrawal penalties.