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Jake Sonenshine: All right, $120 billion have flown into ETFs this year. We have Bruce Bond, CEO and founder of innovator ETFs. Bruce explain to me what your product is, how it works.

Bruce Bond: Okay, well we have two products that we launched today on the New York Stock Exchange, yesterday actually. One is the Emerging Market Buffered ETF and the another one is the Developed Markets Buffered ETF. That's for the MSCI EAFE and MSCI emerging markets. Now what they do is they're really simple. You can buy those markets with a 15% buffer. So if you bought it and the market was down 10% you would be within the buffers. You would be protected from those losses. So for the first 15% down and either the emerging markets or the developed markets, you would have a buffer and so you wouldn't sustain losses if it's down. And then there's a cap on the upside, so you only have a certain amount of the performance, one's about 10 and the other one's about nine.

Jake Sonenshine: Now explain, you pretty much just did, explain the competitive advantage, but I ask that because you do have a cap on the upside. So explain to me or is there something investor anxiety, why are you so competitive with this product?

Bruce Bond: The reason the cap is there and the reason it's so competitive is there's a lot of people that want to be in developed markets or emerging markets, but they're afraid to do it because of the risk associated with that. What this allows them to do is to invest in those markets. And for the emerging market, they get the first 9% up in the market, but they have a 15% buffer on the downside. So they get that exposure that they need, but they also have the buffer there to provide additional protection on the downside. And then same thing on the developed markets. You know, they have a buffer but they get a 10% of the upside on developed markets.

Jake Sonenshine: And you mentioned you really do cater to the conservative investor not looking to beat indexes by a whole lot.

New Speaker: Yeah. I mean, what this does, it's like if you bought the MSCI emerging market, you're going to get the return of that. If we bought the develop market, the EAFE, you're going to get the return of that. What this does is it takes both of those. It's going to give you the return of that index over a year, but it's also gonna give you that buffer on the downside. And I think that's what a lot of people are looking for. And also what people like is they don't want to just put their money in and say, well, let's see what happens where the market goes. They like knowing, okay, I have a certain amount of buffer and I'm going to participate a certain amount on the upside. They know their outcome in a year based on what the underlying index does. And that gives them a lot of comfort. They're like, okay, I don't just have to hope, you know, the market goes up and I make some money.

Jake Sonenshine: Now I gotta ask you, I noticed you've got S&P 500 funds. You've got MSCI funds, there's no euro. When are you going to add a euro?

Bruce Bond: Well, you know, we're definitely in talks on some of that, and what will make sense there? You know, in Europe they use these types of structures a lot to invest, but really this is the first ETF available anywhere on the globe that actually have the built in buffers to provide this downside buffer for people.

Jake Sonenshine: All right. Thanks a lot, Bruce.

Bruce Bond: Thank you.

Innovator ETFs just launched two new products to be traded on the New York Stock Exchange, and the CEO and founder of the provider, Bruce Bond, broke down to TheStreet what the pitch to investors is. 

Innovator launched the Emerging Market Buffered ETF and the Developed Market Buffered ETF. 

Both ETFs allow investors to track MSCI emerging markets indices and the S&P 500 index with a 15% downside buffer. This means that within the first 15% of losses on an index, the investors is protected, preserving his or her capital. 

But there's a caveat. There is a limit to the upside. So how competitive is this ETF with other options out there? 

"The reason the cap is there and the reason it's so competitive is there's a lot of people that want to be in a developed markets or emerging markets, but they're afraid to do it because of the risk associated with that," Bond said.

"What this allows them to do is to invest in those markets. And for the emerging market, they get the first 9% up in the market, but they have a 15% buffer on the downside, so they get that exposure that they need, but they also have the buffer there to provide additional protection on the downside."

Investors get 10% of upside for developed market funds. 

What about Europe exposure? 

"We're definitely a in talks on some of that, and what will make sense there [for Europe funds]," Bond said. 

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