Wall Street Gets New ETF Offering 100% Downside Protection (1)

The pioneer of the world’s first “buffer ETFs” — exchange-traded funds that are supposed to limit losses during market selloffs — has launched a new product which it says offers investors complete downside protection.

Investors in the $7.5 trillion ETF universe can now put money behind the Innovator Equity Defined Protection ETF, which began trading under the ticker TJULon Tuesday. The offering comes from Innovator Capital Management, which launched the first so-called buffer ETFs, also sometimes referred to as defined-outcome funds, in 2018.

Buffer funds, as the name suggests, offer buffered exposure to stocks by limiting investors’ downside ...