Innovator Launches Managed Buffer ETFs® for Hedged Equity Exposure
WHEATON, Ill. — February 24, 2026 — Leads & Copy — Innovator Capital Management, LLC (“Innovator”) has launched Managed Buffer ETFs®, designed to simplify hedged equity exposure across market cycles. These ETFs aim to combine uncapped upside potential, enhanced risk management, and systematic active management into a single-ticker solution.
Sub-advised by Parametric, the new funds seek to provide core equity exposure with reduced volatility, protecting against the first 10% of reference asset losses over a one-year period.
The new funds include:
XBFR – Innovator Equity Managed 10 Buffer ETF™ – U.S. Large-Cap Equities
NBFR – Innovator Nasdaq-100® Managed 10 Buffer ETF™ – Nasdaq-100 Equities
KBFR – Innovator U.S. Small Cap Managed 10 Buffer ETF™ – U.S. Small-Cap Equities
IBFR – Innovator International Developed Managed 10 Buffer ETF™ – International Developed Equities
Key benefits of the new funds include uncapped upside potential, seeking 80–90% upside participation over a one-year period without a hard cap on returns. The funds also target 10-14% downside protection using laddered put protection and systematic call-writing.
Innovator believes that markets have become increasingly defined by sharp drawdowns, rapid rebounds, and sudden leadership rotations, and that Managed Buffer ETFs® aim to offer a more durable experience by combining a targeted downside buffer with uncapped participation in rising markets, in a single-ticker approach.
Innovator launched the first Buffer ETF™ in 2018 and has since built the largest suite of Defined Outcome ETFs™, with over $30 billion in AUM as of December 31, 2025.
Founded by Bruce Bond and John Southard, Innovator has been involved in Defined Outcome investing since 2018 and says it continues to lead innovation in risk-managed equity exposure through Defined Outcome ETF™ strategies.
For more information on Managed Buffer ETFs™ and Innovator’s Defined Outcome ETFs™, visit innovatoretfs.com.
*Refers to the Funds’ potential for enhanced protection relative to laddered buffer portfolios. In light of the Funds’ option overlay strategy utilized to implement the 10% buffers, the Fund targets an annual drawdown protection level between 10% and 14% before fees and expenses, which is not guaranteed. There is no guarantee that the Fund will meet its strategy goals and expectations.
There can be no guarantee that the Funds will be successful in implementing their strategy to provide sought-after protection against losses in the index by implementing the sought-after buffers.
The Funds seek to provide risk-managed investment exposure to their respective index by implementing a hedging strategy. There is no guarantee that the Funds will be successful in implementing their strategy to provide hedged market exposure. The Funds do not provide principal protection or non-principal protection, and an investor may experience losses on their investment, including the loss of their entire investment.
The Funds seek to provide a series of “buffers” that each seek to protect the Fund against 10% of index losses, as measured at the end of one-year periods and prior to taking into account fees and expenses. The implementation of the buffers is not guaranteed.
The Funds implement a “laddering” approach such that the Funds stagger their Options Portfolio, and therefore the sought-after protection of the buffers. The Funds ladder the investment buffers by purchasing put option contracts with a one-year duration that have staggered expiration dates of three-months. The Funds also sell short-dated (i.e., two-weeks) call option contracts that expire every three to four calendar days used towards funding the Fund’s purchased put option contracts. Each Fund’s option strategy will cause the Fund to forego a portion of the upside returns of their equity portfolio to the extent the reference asset for the sold call option contract increases in value beyond the strike price of such option contract.
The time at which an investor purchases or sells Fund shares could impact the extent to which such investor benefits from a specific buffer provided by each Fund’s put option contracts. If an investor purchases shares after the option contracts for an options portfolio were entered into or does not stay invested in the Fund for the entire duration of the respective put option contracts, such investor may not fully benefit from the sought-after downside protection of a given buffer. In light of the laddered put option contracts utilized to implement the 10% buffers, the Funds will experience investment buffers that are expected to be greater or less than the sought-after 10% buffer.
FLEX Options Risk. The Funds will utilize FLEX Options issued and guaranteed for settlement by the Options Clearing Corporation (OCC). In the unlikely event that the OCC becomes insolvent or is otherwise unable to meet its settlement obligations, the Fund could suffer significant losses. 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. The values of FLEX Options do not increase or decrease at the same rate as the reference asset and may vary due to factors other than the price of the reference asset.
Small-Cap Companies Risk. Small cap companies may be more volatile and susceptible to adverse developments than their mid and large cap counterpart. In addition, the small cap companies may be less liquid than larger companies.
Information Technology Companies Risk. Companies in the technology sector are often smaller and can be characterized by relatively higher volatility in price performance when compared to other economic sectors. They can face intense competition which may have an adverse effect on profit margins.
Non-U.S. Securities Risk. Non-U.S. securities are subject to higher volatility than securities of domestic issuers due to possible adverse political, social or economic developments, restrictions on foreign investment or exchange of securities, lack of liquidity, currency exchange rates, excessive taxation, government seizure of assets, different legal or accounting standards, and less government supervision and regulation of securities exchanges in foreign countries.
The Funds’ investment objectives, risks, charges and expenses should be considered carefully before investing. The prospectus and summary prospectus contains this and other important information, and it may be obtained at innovatoretfs.com. Read it carefully before investing.
Investing involves risk. Loss of principal is possible. Innovator ETFs® are distributed by Foreside Fund Services, LLC.
The following marks: Accelerated ETFs®, Accelerated Plus ETF®, Accelerated Return ETF®, Barrier ETF™, Buffer ETF™, Defined Outcome Bond ETF®, Defined Outcome ETFs™, Define Your Future®, Enhanced ETF™, Floor ETF®, Innovator ETFs®, Leading the Defined Outcome ETF Revolution™, Managed Buffer ETF®, Managed Outcome ETF®, Stacker ETF™, Step-Up™, Step-Up ETFs™, 100% Buffer ETFs™ and all related names, logos, product and service names, designs, and slogans are the trademarks of Innovator Capital Management, LLC, its affiliates or licensors. Use of these terms is strictly prohibited without proper written authorization.
Copyright © 2026 Innovator Capital Management, LLC. All rights reserved.
Source: Innovator Capital Management, LLC
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