On the whole, Bond says, the primary customer for the Innovator Defined Outcome ETFs will likely be people at or near retirement who want to protect their nest eggs while also participating in the market’s upside in order to get the growth needed to maintain their standard of living in retirement.
“But they could be for anyone who’s nervous about the market, given the current valuations and length of the bull market,” he adds.
The Innovator S&P 500 Defined Outcome ETFs are sub-advised by Milliman Financial Risk Management LLC, a financial risk management company that provides investment advisory, hedging and consulting services on roughly $152 billion in global assets.
“This is a concept we felt was possible in the ETF structure but which we didn’t really have the capability to do ourselves,” Bond says. “Milliman is one of the top outfits that can provide these types of strategies.”