About Innovator Buffer Step-Up Strategy ETF (BSTP)

The Innovator Buffer Step-Up Strategy ETF (BSTP) is an exchange-traded fund that seeks to provide investors with consistent returns while also offering downside protection. The fund utilizes a unique step-up strategy that adjusts the downside protection level each year, providing investors with an increased buffer against losses over time. BSTP is designed to track the performance of the S&P 500 Price Return Index, while also providing a buffer against the first 15% decline in the index's price return over an annual reset period.

The ETF's step-up strategy works as follows: at the beginning of each year, the fund sets a new downside protection level by subtracting the buffer rate from the reference index level. This buffer rate is based on the higher of either the index's realized volatility or a predetermined buffer rate. If the index's price return falls below the downside protection level during the reset period, the fund rebalances its exposure to the index accordingly. This dynamic rebalancing feature helps to mitigate potential losses for investors.