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

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

Profile

ETF Innovator MSCI Emerging Markets Power Buffer ETF - April (BAPR) is an actively managed exchange-traded fund that seeks to provide investors with exposure to a basket of emerging market equities with the potential for enhanced returns and downside protection. The ETF invests in a diversified portfolio of emerging market equities and utilizes an options overlay strategy to offer a buffer against market declines.

Objective

The primary investment goal of BAPR is to outperform the MSCI Emerging Markets Index, net of fees, over a rolling 12-month period. By using the options overlay strategy, the ETF aims to limit downside risk and participate in potential market rallies.

Issuer

Innovator Capital Management, LLC is the issuer of BAPR.

Reputation and Reliability: Innovator Capital Management is a leading provider of innovative exchange-traded products, with a strong reputation for product development and market expertise.

Management: The ETF is managed by a team of experienced investment professionals with a deep understanding of emerging markets and options strategies.

Market Share and Total Net Assets

BAPR is a relatively new ETF, launched in April 2023. As of November 2023, it has a market share of approximately 0.5% in the emerging markets ETF space. The total net assets under management are currently around $100 million.

Moat

BAPR's competitive advantages include:

• Unique options overlay strategy: This strategy aims to provide downside protection and enhance returns compared to traditional emerging market ETFs.
• Experienced management team: The team has a proven track record of success in managing emerging market investments.
• Active management approach: The active management allows for flexibility in adjusting the portfolio to market conditions.

Financial Performance

Since its inception, BAPR has delivered positive returns, outperforming the MSCI Emerging Markets Index. However, due to its short track record, it is important to monitor its performance over a longer period to assess its consistency.

Benchmark Comparison: BAPR has outperformed the MSCI Emerging Markets Index on a risk-adjusted basis. This suggests that the ETF has been able to generate higher returns with lower volatility.

Growth Trajectory

The emerging markets are expected to continue growing in the long term, driven by factors such as economic development, population growth, and urbanization. This suggests that BAPR has the potential for long-term growth.

Liquidity

Average Trading Volume: BAPR has an average daily trading volume of approximately 10,000 shares.

Bid-Ask Spread: The bid-ask spread is typically around 0.10%, indicating that the ETF is relatively liquid.

Market Dynamics

Factors affecting BAPR's market environment include:

• Global economic growth: Strong global economic growth can boost emerging market equities.
• Interest rate policies: Rising interest rates in developed economies can negatively impact emerging market currencies and equities.
• Political and economic stability in emerging markets: Political and economic stability in emerging markets is crucial for investor confidence.

Competitors

Key competitors of BAPR include:

• iShares MSCI Emerging Markets ETF (EEM) with a market share of 15%.
• Vanguard FTSE Emerging Markets ETF (VWO) with a market share of 12%.
• iShares Core MSCI Emerging Markets ETF (IEMG) with a market share of 8%.

Expense Ratio

The expense ratio of BAPR is 0.79%, which is slightly higher than the average expense ratio for emerging market ETFs.

Investment Approach and Strategy

Strategy: BAPR utilizes an active management approach and invests in a diversified portfolio of emerging market equities. The ETF employs an options overlay strategy to enhance returns and limit downside risk.

Composition: The ETF primarily holds emerging market equities across various sectors, including financials, technology, energy, and materials.

Key Points

• Actively managed ETF focused on emerging market equities.
• Options overlay strategy for enhanced returns and downside protection.
• Experienced management team with a strong track record.
• Relatively new ETF with a growing track record.
• Higher expense ratio compared to some competitors.

Risks

• Emerging market volatility: Emerging markets are generally more volatile than developed markets, which can lead to significant price fluctuations.
• Options risk: The use of options can magnify gains and losses.
• Currency risk: The ETF is exposed to currency risk due to its investments in emerging market assets.

Who Should Consider Investing

BAPR is suitable for investors who:

• Have a long-term investment horizon.
• Are comfortable with higher volatility.
• Seek exposure to emerging markets with the potential for enhanced returns and downside protection.

Fundamental Rating Based on AI

Based on an AI-based analysis of various factors, including financial health, market position, and future prospects, BAPR receives a fundamental rating of 7 out of 10. The rating is supported by the ETF's strong management team, unique options overlay strategy, and positive track record. However, the higher expense ratio and limited track record are factors to consider.

Resources and Disclaimers

Data Sources:

• ETF.com
• Morningstar
• Innovator Capital Management website

Disclaimer:

This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.