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This New ETF Wants to Give You International Growth Without the Full Pain of International Crashes

MarketDash Editorial Team
13 days ago
Innovator Capital launches its first international Managed Floor ETF, targeting 70-80% upside participation in developed markets while capping annual losses at roughly 8-12% through a structured options strategy.

Innovator Capital Management is taking its risk-managed playbook global. The firm just launched the Innovator International Developed Equity Managed Floor ETF (IFLR), marking the first international addition to its Managed Floor suite. Think of it as crash insurance for your global stock portfolio, except you're trading some upside for that protection.

The fund gives you exposure to 21 developed markets and more than 690 companies, with a twist: you get roughly 70-80% of the upside when things go well, but your annual losses get capped at around 8-12% before fees. The expense ratio sits at 0.89%.

Why International Stocks Are Back on the Radar

Here's the setup: U.S. equities have absolutely crushed international stocks over the past 15 years, outpacing them by more than 550% cumulatively. But lately, investors are giving foreign markets a second look. Valuations abroad are starting to look reasonable compared to the U.S., and market leadership is finally broadening beyond American megacap tech giants.

There's just one problem. International equities have a well-earned reputation for nastier drawdowns than U.S. stocks. That psychological hurdle keeps a lot of investors on the sidelines, even when the opportunity looks compelling. This is exactly the kind of tension that structured-risk products are designed to solve.

According to Innovator, demand for these solutions is growing as more wealth moves into the hands of pre-retirees and retirees. These investors still want growth, but they can't afford to take a beating if markets turn ugly. Traditional options like annuities or certain hedged-equity products come with their own headaches: higher fees, liquidity constraints, credit risk, or protection levels that shift around unpredictably. Managed Floor ETFs aim to fix those issues by offering predictable guardrails inside a transparent, liquid ETF structure.

How the Protection Actually Works

IFLR uses Innovator's three-part formula:

  • Direct equity exposure to developed international stocks for your base growth engine.
  • Purchased put options to create the protective "floor," which resets quarterly based on current market conditions.
  • A dynamic call-writing strategy that sells short-dated call options to help fund the downside protection while still preserving meaningful upside, particularly after market pullbacks.

The goal is straightforward: give investors a way to participate in global growth without absorbing the full violence of international market volatility. It's conservative international equity exposure with built-in shock absorbers for when things get rough.

Back to News

This New ETF Wants to Give You International Growth Without the Full Pain of International Crashes

MarketDash Editorial Team
13 days ago
Innovator Capital launches its first international Managed Floor ETF, targeting 70-80% upside participation in developed markets while capping annual losses at roughly 8-12% through a structured options strategy.

Innovator Capital Management is taking its risk-managed playbook global. The firm just launched the Innovator International Developed Equity Managed Floor ETF (IFLR), marking the first international addition to its Managed Floor suite. Think of it as crash insurance for your global stock portfolio, except you're trading some upside for that protection.

The fund gives you exposure to 21 developed markets and more than 690 companies, with a twist: you get roughly 70-80% of the upside when things go well, but your annual losses get capped at around 8-12% before fees. The expense ratio sits at 0.89%.

Why International Stocks Are Back on the Radar

Here's the setup: U.S. equities have absolutely crushed international stocks over the past 15 years, outpacing them by more than 550% cumulatively. But lately, investors are giving foreign markets a second look. Valuations abroad are starting to look reasonable compared to the U.S., and market leadership is finally broadening beyond American megacap tech giants.

There's just one problem. International equities have a well-earned reputation for nastier drawdowns than U.S. stocks. That psychological hurdle keeps a lot of investors on the sidelines, even when the opportunity looks compelling. This is exactly the kind of tension that structured-risk products are designed to solve.

According to Innovator, demand for these solutions is growing as more wealth moves into the hands of pre-retirees and retirees. These investors still want growth, but they can't afford to take a beating if markets turn ugly. Traditional options like annuities or certain hedged-equity products come with their own headaches: higher fees, liquidity constraints, credit risk, or protection levels that shift around unpredictably. Managed Floor ETFs aim to fix those issues by offering predictable guardrails inside a transparent, liquid ETF structure.

How the Protection Actually Works

IFLR uses Innovator's three-part formula:

  • Direct equity exposure to developed international stocks for your base growth engine.
  • Purchased put options to create the protective "floor," which resets quarterly based on current market conditions.
  • A dynamic call-writing strategy that sells short-dated call options to help fund the downside protection while still preserving meaningful upside, particularly after market pullbacks.

The goal is straightforward: give investors a way to participate in global growth without absorbing the full violence of international market volatility. It's conservative international equity exposure with built-in shock absorbers for when things get rough.