Innovator Index Autocallable Income Strategy ETF

Frequently Asked Questions About ACII

What does ACII invest in?

ACII is actively managed, entering into OTC swap agreements. The swaps are structured to mirror the returns of autocallable instruments linked to three major US Equity ETFs: SPDR S&P 500 ETF (SPY), Invesco Nasdaq-100 ETF (QQQ), and the iShares Russell 2000 ETF (IWM). The autocallable instruments generate coupon payments that are contingent on the performance of all three ETFs and are designed so that the fund only participates in losses if one of the three indices declines more than 30%. The swap agreements are staggered across different maturity and observation dates, seeking to reduce timing and reinvestment risks. Measurement dates for the instruments include monthly coupon dates, quarterly call dates, and a final maturity date (typically three years). New autocallable positions are initiated as existing ones mature or are called. Uninvested assets are placed in short-term Treasury bills or money-market funds, as collateral for swaps. The fund may use box spread options to manage cash or generate income.

What is the expense ratio of ACII?

Innovator Index Autocallable Income Strategy ETF (ACII) charges an expense ratio of 0.79%. This is the annual fee deducted from fund assets to cover management and operations.

What is ACII's dividend yield?

ACII's trailing-twelve-month yield is 5.22%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of ACII?

Effective duration measures ACII's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. ACII's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of ACII?

ACII's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of ACII?

Yield to maturity (YTM) is the total return you'd earn from ACII if every bond in the portfolio is held to maturity at the current price. ACII's YTM is published on the fund's factsheet on the issuer's website — it differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.