Innovator ETFs® Announces Liquidation of Two Exchange-Traded Funds

Innovator Capital Management has announced the liquidation of two exchange-traded funds: the Innovator Gradient Tactical Rotation Strategy ETF and the Innovator Hedged Nasdaq-100 ETF. The decision was approved by the Funds' Board of Trustees effective June 17, 2026, with no shareholder vote required under the liquidation plan framework.

The orderly liquidation process represents a fund closure rather than a market disruption event. Such actions typically occur when funds fail to achieve minimum asset thresholds, underperform peer offerings, or become uneconomical to operate. The structured unwinding approach minimizes forced selling pressures and allows existing shareholders time to redirect capital.

This announcement carries minimal systemic implications given the apparent modest size of these funds relative to the broader ETF ecosystem. The hedged strategy focus and tactical rotation mandate suggest these were niche products targeting sophisticated investors, not broad-based index trackers with significant retail exposure.

Sector implication: No material sector impact detected. This is an operational/product management decision affecting fund shareholders rather than underlying portfolio companies or macroeconomic conditions. The liquidation reflects competitive pressures within the ETF industry rather than fundamental asset class deterioration.