Innovator Capital Management has launched the Innovator Equity Dual Directional 10 Buffer ETF — December (BATS: DDTD), which joins a growing suite of defined-outcome strategies from the firm designed to capture a return in both mildly up and mildly down markets.
The fund, launched Dec 1, initiates a new one-year outcome period each December and engineers its payoff profile through FLEX options.
DDTD aims to provide positive returns when the reference asset — an S&P 500-linked ETF — tallies either modest gains or controlled losses within a set range.
If the market declines beyond that, the fund transitions into a buffered loss structure, absorbing the first 10% of losses while limiting upside potential.
The catch, always, with defined-outcome ETFs: investors need to buy at the beginning of the outcome period and hold for the full year to realize the published parameters. Buying mid-period can bring very different exposures.
The strategy is executed by Milliman Financial Risk Management, Innovator’s longtime sub-adviser, employing a portfolio of FLEX options to shape the dual-directional buffered outcome. Innovator positions the fund as a middle-ground solution for investors seeking structured protection without walking away from equities — effectively a way to stay invested while muting the whiplash of choppy market cycles.
The fund carries the usual trade-offs associated with defined-outcome products, including a capped upside, complex payoff paths and sensitivity to timing. Still, advisers watching the space say such structures have continued to gain traction among investors looking for more control over risk in an environment where volatility keeps overstaying its welcome.
Innovator also simultaneously launched the Innovator Equity Dual Directional 15 Buffer ETF — December (BATS: DDFD).
**Innovator Capital Management** has launched the **Innovator Equity Dual Directional 10 Buffer ETF — December** (BATS: DDTD), which joins a growing suite of defined-outcome strategies from the firm designed to capture a return in both mildly up and mildly down markets.
The fund, launched Dec 1, initiates a new one-year outcome period each December and engineers its payoff profile through FLEX options.
DDTD aims to provide positive returns when the reference asset — an S&P 500-linked ETF — tallies either modest gains or controlled losses within a set range.
If the market declines beyond that, the fund transitions into a buffered loss structure, absorbing the first 10% of losses while limiting upside potential.
The catch, always, with defined-outcome ETFs: investors need to buy at the beginning of the outcome period and hold for the full year to realize the published parameters. Buying mid-period can bring very different exposures.
The strategy is executed by **Milliman Financial Risk Management**, Innovator’s longtime sub-adviser, employing a portfolio of FLEX options to shape the dual-directional buffered outcome. Innovator positions the fund as a middle-ground solution for investors seeking structured protection without walking away from equities — effectively a way to stay invested while muting the whiplash of choppy market cycles.
The fund carries the usual trade-offs associated with defined-outcome products, including a capped upside, complex payoff paths and sensitivity to timing. Still, advisers watching the space say such structures have continued to gain traction among investors looking for more control over risk in an environment where volatility keeps overstaying its welcome.
Innovator also simultaneously launched the **Innovator Equity Dual Directional 15 Buffer ETF — December** (BATS: DDFD).
<p><strong>Innovator Capital Management</strong> has launched the <strong>Innovator Equity Dual Directional 10 Buffer ETF — December</strong> <a class="ticker-link" data-ticker="DDTD" data-exchange="BATS" href="https://www.benzinga.com/quote/DDTD" target="_blank" rel="noopener">(BATS:<a class="ticker" href="https://www.benzinga.com/quote/DDTD">DDTD</a>)</a>, which joins a growing suite of defined-outcome strategies from the firm designed to capture a return in both mildly up and mildly down markets.<a href="https://www.benzinga.com/etfs"> </a></p>
<p><a href="https://www.benzinga.com/etfs">The fund</a>, launched Dec 1, initiates a new one-year outcome period each December and engineers its payoff profile through FLEX options.</p>
<p> <strong> • Is DDTD challenging resistance? <a href="https://www.benzinga.com/quote/DDTD" target="_blank" rel="noreferrer noopener">Find out here</a></strong></p>
<p>DDTD aims to provide positive returns when the reference asset — an S&P 500-linked ETF — tallies either modest gains or controlled losses within a set range.</p>
<p> If the market declines beyond that, the fund transitions into a buffered loss structure, absorbing the first 10% of losses while limiting upside potential. </p>
<p>The catch, always, with defined-outcome ETFs: investors need to buy at the beginning of the outcome period and hold for the full year to realize the published parameters. Buying mid-period can bring very different exposures.</p>
<p>The strategy is executed by <strong>Milliman Financial Risk Management</strong>, Innovator’s longtime sub-adviser, employing a portfolio of FLEX options to shape the dual-directional buffered outcome. Innovator positions the fund as a middle-ground solution for investors seeking structured protection without walking away from equities — effectively a way to stay invested while muting the whiplash of choppy market cycles.</p>
<p>The fund carries the usual trade-offs associated with defined-outcome products, including a capped upside, complex payoff paths and sensitivity to timing. Still, advisers watching the space say such structures have continued to gain traction among investors looking for more control over risk in an environment where volatility keeps overstaying its welcome.</p>
<p>Innovator also simultaneously launched the <strong>Innovator Equity Dual Directional 15 Buffer ETF — December</strong> <a href="https://www.benzinga.com/quote/DDFD" target="_blank" class="ticker-link" data-ticker="DDFD" data-exchange="BATS" rel="noopener">(BATS:<a class="ticker" href="https://www.benzinga.com/quote/DDFD">DDFD</a>)</a>.</p>
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<p><em>Photo: Shutterstock</em></p>