Buffer ETF April Series Caps S&P 500 Gains at 11.6% With 0.79% Fees
Innovator U.S. Equity Power Buffer ETF April series protects from the first 15% of S&P 500 losses while capping price returns at 11.6% net over a one-year outcome period with a 0.79% expense ratio. The April 2025–26 cycle set a 12.39% pre-fee cap and a 14.21% downside buffer, resetting annually.
1. Strategy Overview
The ETF does not hold equities but uses index options to provide a defined risk-return profile over one-year periods, buffering the first 15% of S&P 500 declines via a put spread and selling calls to fund protection in exchange for an upside cap.
2. April Cycle Terms
For the 2025–26 outcome period, the fund set a 12.39% pre-fee cap (about 11.6% net) on price gains and a 15% pre-fee downside buffer (about 14.21% net) after a 0.79% expense ratio, with the structure resetting each April.
3. Investor Considerations
Investors must buy at the start and hold through the outcome period to capture full buffer and cap levels, and should note the ETF tracks price returns only, foregoing dividend reinvestment and incurring higher fees than standard S&P 500 funds.