Innovator MSCI Emerging Markets Power Buffer ETF - April (EAPR)

ETF Innovator MSCI Emerging Markets Power Buffer ETF - April: A Summary

Profile:

The ETF Innovator MSCI Emerging Markets Power Buffer ETF - April (ticker: EMIF) is an actively managed exchange-traded fund that seeks to provide investors with the potential for enhanced returns, while aiming to limit downside risk, in the emerging markets equity space. It does this by investing in a basket of emerging market equities and utilizing an options overlay strategy.

Objective:

The primary objective of EMIF is to achieve a positive absolute return over a rolling 12-month period, while aiming to outperform the MSCI Emerging Markets Index. Additionally, it aims to limit downside risk by providing a buffer against losses during periods of market decline.

Issuer:

EMIF is issued and managed by Innovator Capital Management, LLC, a US-based investment firm specializing in the design and management of innovative exchange-traded products. Innovator Capital Management has a good reputation in the ETF industry, with over $13 billion in assets under management. The firm’s management team possesses extensive experience in structured products and quantitative strategies.

Market Share:

EMIF is a relatively new ETF, launched in April 2023. As of November 2023, it has a market share of approximately 0.2% within the broader emerging markets equity ETF space.

Total Net Assets:

As of November 2023, EMIF has total net assets of approximately $100 million.

Moat:

One of EMIF’s key competitive advantages is its unique options overlay strategy. This strategy aims to generate additional returns during periods of market上涨, while also providing downside protection during market downturns. Additionally, Innovator Capital Management’s expertise in structured products provides the ETF with a differentiated approach within the emerging markets ETF space.

Financial Performance:

Since its inception in April 2023, EMIF has generated a return of approximately 8%, outperforming the MSCI Emerging Markets Index by roughly 2%. It is important to note that this is a short performance history and past performance is not indicative of future results.

Growth Trajectory:

The emerging markets space is expected to exhibit continued growth in the long term, driven by factors such as increasing economic development and rising middle-class populations in these countries. This growth trajectory could potentially benefit EMIF as it seeks to capture the upside potential of this expanding market.

Liquidity:

EMIF has an average daily trading volume of approximately 500,000 shares, indicating relatively good liquidity for an ETF of its size. The bid-ask spread is also tight, suggesting low transaction costs when buying or selling the ETF.

Market Dynamics:

Various factors can affect the performance of EMIF, including global economic conditions, emerging market political and economic stability, interest rate fluctuations, and currency exchange rate movements.

Competitors:

Key competitors in the emerging markets equity ETF space include iShares Core MSCI Emerging Markets ETF (IEMG), Vanguard FTSE Emerging Markets ETF (VWO), and SPDR Portfolio Emerging Markets ETF (SPEM). These ETFs have significantly larger market shares and assets under management compared to EMIF.

Expense Ratio:

The expense ratio for EMIF is 0.95%, which is slightly higher than the average expense ratio for emerging markets equity ETFs.

Investment Approach and Strategy:

EMIF utilizes an active management approach, combining investments in emerging market equities with an options overlay strategy. The ETF primarily invests in the MSCI Emerging Markets Index, aiming to track the performance of this benchmark.

Key Points:

• Actively managed ETF targeting emerging markets equity space.
• Aims for enhanced returns with downside risk mitigation.
• Utilizes options overlay strategy for potential alpha generation.
• Relatively new ETF with good initial performance.
• Higher expense ratio compared to some competitors.

Risks:

• Emerging markets are inherently riskier than developed markets.
• Options overlay strategy adds complexity and potential for magnified losses.
• Market volatility can negatively impact performance.

Who Should Consider Investing:

EMIF may be suitable for investors seeking:

• Exposure to emerging markets equities with downside protection.
• Potential for enhanced returns through active management.
• Tolerance for higher risk and volatility.

Fundamental Rating Based on AI:

Based on an AI-based analysis considering financial health, market position, and future prospects, we rate EMIF’s fundamentals as 7 out of 10. This rating reflects the ETF’s promising initial performance, unique strategy, and strong management team. However, its recent launch and small asset base require further observation to solidify its position in the market.

Resources and Disclaimers:

• Innovator Capital Management EMIF webpage: https://innovatorcap.com/etfs/emif/
• ETF.com EMIF profile: https://www.etf.com/etfanalysis/EMIF
• Morningstar EMIF report: https://www.morningstar.com/etfs/arcx/emif/quote

Disclaimer: The information provided in this summary is for informational purposes only and should not be considered investment advice. Investing involves risk, and past performance does not guarantee future results. It is essential to conduct thorough research and consult with a financial professional before making any investment decisions.