Innovator Defined Wealth Shield ETF

BALT

Market cap $2.07B

There's a lot of collective wisdom about the challenge of forecasting markets and the economy. Warren Buffet once famously said: “”Forecasts may tell you a great deal about the forecaster; they tell you nothing about the future.

Defined Outcome ETF BALT hits a new 52-week high, as investors seeking growth with downside protection are taking notice.

Kathmere Capital CIO Nick Ryder and Goldman Sachs Asset Management Third Party Wealth co-head Bryon Lake join CNBC's Dominic Chu on “ETF Edge” to break down Goldman's Innovator acquisition and how defined outcome ETFs can help investors seek income and downside protection.

Bryon Lake, Goldman Sachs Asset Management Third Party Wealth co-head, joins Dominic Chu on 'Halftime Report' to discuss what buying Innovator Capital Management means for the firm, the opportunity in defined-outcome ETFs and more.

The Innovator Defined Wealth Shield ETF offers a 20% downside buffer over a 3-month period, making it extremely conservative. BALT's tight upside cap results in modest returns, lagging significantly during strong equity rallies and underperforming even some safe fixed income funds. Despite its equity structure, BALT's risk/reward profile is less attractive than alternatives like PJAN or ACIO, which balance downside protection with upside potential.

Innovator Defined Wealth Shield ETF offers 20% downside protection on SPY but severely caps upside, making it a loss mitigation tool rather than a growth vehicle. SPY remains a superior long-term investment due to its low cost, broad diversification, and strong historical performance versus BALT's capped returns. BALT's structure is best suited for investors prioritizing capital preservation over growth, but timing of entry within outcome periods is critical.

We highlight some prominent defined outcome ETFs that offer downside protection to the major indices.

We highlight some defensive investment strategies for investors amid the ongoing chaos.

CCOR, BALT, XRMI, PHDG and HEQT are included in this Analyst Blog.

Investors seeking to remain invested in the equity world with downside protection should invest in low-beta ETFs.