Scared of Bonds? Buffer ETFs as a Bond Fund Alternative

Tuesday, July 27, 2021

2:00 PM EDT | 11:00 AM PDT

60 minutes

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 For the 10 years prior to the great financial crisis of 2008 (GFC), the 10-year Treasury bond’s average yield was 5.0%; for the 10 calendar years ended December 2020, it averaged just 2.3%, less than half its pre-crisis average (Source: Bloomberg).

In pursuit of higher yields, many investors are taking on more risk, either by going further out on the yield curve or further down the credit spectrum. In 2021, however, even the longer-dated and lower-quality segments of the bond market have failed to offer yields comparable to those of their shorter-dated, higher-quality counterparts prior to the GFC.

 This dynamic has led investors to seek bond alternatives. One such alternative is a defined outcome investment with built-in buffers against losses.


For financial professional use only.

The 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. 

Carefully consider the investment objective, risks, charges, and expenses contained in the prospectus at Read it carefully. 

There is no guarantee the fund will achieve its investment objective. Investors purchasing shares after an outcome period has begun will be exposed to enhanced downside risk.   

Innovator ETFs are distributed by Foreside Fund Services, LLC.



Trevor Terrell Headshot

Trevor Terrell
Vice President of Sales

Trevor joined Innovator Capital Management in 2017 and is vice president of sales, responsible for distribution and marketing efforts across the institutional, national wirehouse, registered investment advisor and regional & independent broker dealer channels. Prior to joining Innovator, he was SVP – head of sales at Elkhorn Investments and spent time in several sales positions at Invesco PowerShares. Trevor holds a bachelor’s degree from Taylor University and also maintains the series 24, 7, 66 and 63 FINRA licenses.

Joe Becker, FRM Headshot

Joe Becker, FRM
Director, Portfolio Strategist @Milliman Financial Risk Management

Bringing more than 20 years of investment industry experience to his role, including more than a decade in investment & product strategy, Joe is a client-focused analytical thinker and thoughtful communicator. He possesses a thorough knowledge of buy-side financial services, centered on investment product strategy & development, financial markets & economics, and distribution & marketing to retail, intermediary and institutional investors. He has been a regular speaker at industry conferences and has been quoted in leading financial publications including The Wall Street Journal, Barron’s, Financial Times and Bond Buyer.

Michael Finke Headshot

Michael Finke
Ph.D., Frank M. Engle Distinguished Chair in Economic Security
The American College of Financial Services

Michael Finke, PhD, isProfessor of Wealth Management, Director for the Granum Center for Financial Security, and the Frank M. Engle Distinguished Chair in Economic Security at The American College of Financial Services. He joined The College in June 2016, having served since 2006 as a professor and PhD coordinator in the Department of Personal Financial Planning at Texas Tech University. From 1999 through 2006, he served as the Director of Graduate Studies at the University of Missouri.

Finke is a nationally renowned researcher with a focus on the value of financial advice, financial planning regulation, investments, and individual investor behavior. He was named to the 2012 and 2020 Investment Advisor IA 25 list and the 2013 and 2014 Investment News Power 20. His research conducted with fellowprofessorWade Pfauquestioning the 4% rule of retirement planningwas published in theJournal of Financial Planningand won the 2014 Montgomery-Warschauer award formost influential article. Hepreviously won the award with Thomas Langdon in 2013. He was also selected to present his research on financial literacy and aging at the 2015 MIT Center for Finance and Policy Conference.

Finke has published more than 50 peer-reviewed articles and is widely quoted in many of the nation’s leading consumer publications, includingThe Wall Street Journal,The New York Times,Time, andMoney Magazine.He also has worked on white paper research projects for companies that include MetLife, Northwestern Mutual, OneAmerica, the Society of Actuaries, and TIAA.