Innovator Equity Defined Protection ETF (TAPR)

Overview

The investment strategy in question focuses on achieving returns tied to the performance of the Barclays Inverse US Treasury Futures Aggregate Index™. This complex financial strategy specifically involves the tracking of the aggregate performance derived from rebalanced short positions across a diverse range of U.S. Treasury futures contracts. The contracts in focus include those with 2-year, 5-year, 10-year, long-bond, and ultra-long maturities. Essentially, this investment approach constructs a portfolio that holds synthetic short positions in equal face values of each specified U.S. Treasury futures contract. The variation in the contracts' maturities is strategic, covering a wide spectrum of the yield curve. The rebalancing of these positions is periodically executed, aiming to adapt to changing market conditions and to maintain a balanced exposure across the different segments of the U.S. Treasury market.

Products and Services

• Synthetic Short Positions in U.S. Treasury Futures:

This product centers on creating synthetic short positions in U.S. Treasury futures contracts. These positions are equally weighted across various maturities—2-year, 5-year, 10-year, long-bond, and ultra-long—providing a comprehensive exposure to the inverse performance of the U.S. Treasury yields. Investors who anticipate an increase in Treasury yields, which inversely affects bond prices, may find this strategy appealing as it is designed to profit from declining bond values. The inclusion of contracts close to expiration and those immediately following offers a tactical approach to capturing shifts in the yield curve.