A Primer on Defined Outcome ETFs and How RIAs Implement Them in Client Portfolios

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Defined Outcome ETFs have proven to be a remarkable tool for managing portfolio risk in client portfolios, especially during volatile markets.

In this webcast, Bruce Bond, CEO of Innovator, introduces the Innovator Defined Outcome ETFs and Graham Day, also of Innovator, explains how these ETFs work. Rob Schulz and Austin Smith illustrate how they implement the Innovator Defined Outcome ETFs in client portfolios.

Advisors will learn:

• What are Defined Outcome ETFs? Defined Outcome Investing is a concept that has been around for several decades, however, its use in an ETF format is relatively new. Learn the benefits of using an ETF as an investment vehicle to implement this style of investing.
• How do they work? In this section, we will discuss the “layers” of specific options that are used in order to produce a defined outcome.
• How can they be used in client portfolios? We will have an RIA explain how his team uses the Innovator Defined Outcome ETFs in client portfolios.

Both all presenters will be available to answer your questions live following the presentation. 

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The Defined Outcome ETFs seek to generate returns that match the Price Index, up to the Cap, while buffering against losses, before fees and expenses, over the course of a 1 year period. The Defined Outcome Series Funds have characteristics unlike many other traditional investment products and may not be suitable for all investors. For more information regarding whether an investment in the Fund is right for you, please see "Investor Suitability" in the prospectus. There is no guarantee the fund will achieve its investment objective.

The Funds are designed to provide point-to-point exposure to the price return of an index via a basket of Flex Options. As a result, the ETFs are not expected to move directly in line with the index during the interim period. 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.

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.

The Funds only seek to provide shareholders that hold shares for the entire Outcome Period with their respective buffer level against index losses during the Outcome Period. You will bear all index losses exceeding 9, 15 or 30%. 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 carefully before investing. The prospectus contains this and other important information, and it may be obtained at innovatoretfs.com. Read it carefully before investing.

Innovator ETFs are distributed by Foreside Fund Services, LLC.

Speakers

Bruce Bond
Co-Founder and CEO
Innovator ETFs

Bruce is co-founder and CEO of Innovator Capital Management. Having cofounded Power Shares Capital Management in 2003, he is recognized as one of the pioneers of the ETF industry. His leadership, creativity and entrepreneurial vision challenged the conventional thinking about ETFs and blazed a trail that made way for the massive growth of what is known today as smart or strategic beta. In addition to being recognized for best-in- class products, Bruce has been named the ETF industry’s most influential person on multiple occasions. He is a thought leader and has been quoted in financial publications around the globe.

Graham Day, CFA
Vice President of Product & Research
Innovator ETFs

Graham joined Innovator Capital Management in 2017 and is vice president of product & research, responsible for product development, capital markets and research efforts. Prior to joining Innovator, Graham was SVP - head of product & research at a startup ETF issuer and a Senior Strategist at Invesco PowerShares. He has been quoted in CNBC.com, TheStreet.com, FA magazine, FOX Business and Investopedia.com. Graham is a CFA charter holder, a member of the CFA Society of Chicago and holds a bachelor’s degree from Wheaton College.

Rob Schulz
President
Schulz Wealth, Ltd.

Rob grew up in Taylor, Texas. He attended The University of Texas on a Navy ROTC Scholarship, graduating in May of 1990 with a degree in Accounting. Rob served as a Surface Warfare Officer aboard the USS John Rodgers (DD 983) prior to joining The Principal Financial Group in 1995. In 2000, Rob founded First Texas Financial Services Corporation in Arlington, Texas. Subsequently, Schulz Wealth Ltd., a Registered Investment Advisory firm was created in 2014.

Rob has extensive experience and training in helping people achieve financial security. He is a licensed Investment Adviser (Series 65), and a Certified Financial Planner™ (CFP®). Rob has been recognized most recently for his expertise by his peers and publicly as a 2019 Five Star Wealth Manager as well as a 2019 Investopedia Top 100 Investment Advisor in the country. He has also taught Retirement Planning for the Certified Financial Planning Certificate Program at Texas Christian University and The University of Texas at Arlington.

Austin Smith
Associate Financial Advisor
Schulz Wealth, Ltd.

Austin is an associate financial advisor, bringing more investment knowledge to the Schulz Wealth team. He grew up in nearby Flower Mound before attending college at Southwestern University, in Georgetown Texas. At Southwestern, Austin majored in Business and graduated from the Financial Analyst Honors Program in August of 2017. Austin is a Licensed Investment Adviser Representative currently pursuing the Chartered Financial Analyst (CFA) designation.

Robert Huebscher
CEO and Founder
Advisor Perspectives

Robert Huebscher is the founder and CEO of Advisor Perspectives and serves as its editor-in-chief. He is a frequent speaker at industry conferences and has written extensively on topics including investment management, portfolio construction, financial planning and global economics.