JACKIE NOBLETT, SENIOR REPORTER, IGNITES: We're here at the Exchange ETF conference with Graham Day of Innovator. Defined outcome ETFs have really exploded. You've been a huge beneficiary of Innovator for being one of the first to put them in the ETF wrapper. Can you explain what this actually does?

GRAHAM DAY, VP PRODUCT AND RESEARCH, INNOVATOR ETFS: We've been part of building a lot of ETFs in our careers. These are actually the most simple ETFs that we've ever built because we use options to construct the payoffs. But once those basket of options is set, it is fixed for the entirety of the outcome period. No one is moving the options positions around. It's set. That's what gives the defined outcome for investors. And it's really why we're seeing a lot of traction in these products because people want known risk management today. And so for our wholesalers to go and talk with advisors about here is the level of downside mitigation you have available with these products going forward, that's a big selling point.

JACKIE NOBLETT: How do you explain the cap you have to put on the upside that is the cost of protecting the downside?

GRAHAM DAY: Like you said, there's no free lunch. And so the cost of that known downside protection is an upside cap. But on a lot of our products today, the cap is 10% to 13% with a 15% downside buffer. Most investors are not expecting the market to go up 10%, 13% over the next year. And so for them this is a way to stay invested.

JACKIE NOBLETT: Well, you guys have been super busy and in super growth mode. So I really appreciate you taking the time.

GRAHAM DAY: Yeah. Thanks again for having me, Jackie.

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How Innovator ETFs Explains Its Defined Outcome Products

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