An ETF Pioneer Sees Opportunity in 'Defined Outcome' Products

Bruce Bond, co-founder of Innovator Capital Management, discusses the launch of a new defined outcome ETF. This product aims to provide returns similar to the S&P 500 while offering a buffer against losses. The ETF is designed for both individual and institutional investors seeking predictable outcomes. Bond explains the mechanics of the ETF, its appeal in different market conditions, and its potential to disrupt traditional investment products. He also shares insights on the future of ETFs and asset growth, highlighting the ongoing innovation in the industry.

What motivated Bruce Bond to come out of retirement and introduce new ETF products?

• A need to diversify his investment portfolio

• A lack of innovation in the ETF marketplace

• A request from institutional investors

• A desire to compete with mutual funds

What is the primary feature of a Defined Outcome ETF?

• It guarantees a fixed return regardless of market conditions

• It mimics the performance of a mutual fund

• It provides returns up to a cap while buffering against initial losses

• It offers unlimited upside potential with no downside protection

Who are the potential investors interested in Defined Outcome ETFs?

• Only institutional investors

• Only individual investors

• Both institutional and individual investors

• Only retired individuals

How does the market condition affect the appeal of Defined Outcome ETFs?

• They are only appealing in a declining market

• They are appealing in both richly valued and correction scenarios

• They lose appeal during market corrections

• They are only appealing in a rising market

In which inning does Bruce Bond believe the ETF innovation is currently?

• Fifth to seventh inning

• Second inning

• First inning

• Ninth inning