Innovator ETFs Trust - Innovator Emerging Markets Power Buffer ETF - July (EOCT)

Overview

The Innovator Emerging Markets Power Buffer ETF - July (July PJAN) is designed to provide investors with buffered exposure to the emerging markets, limiting downside risk over a defined outcome period while participating in potential upside, subject to a cap.

Reputation and Reliability

Innovator ETFs is known for its defined outcome ETFs, offering structured strategies for risk management and participation in market gains.

Management Expertise

The management team has expertise in creating and managing defined outcome ETFs, utilizing options strategies to achieve specific investment objectives.

Goal

The ETF seeks to provide a defined level of downside protection (buffer) against market losses over a specific one-year period, while also offering potential upside participation, up to a cap.

Investment Approach and Strategy

Strategy: The ETF employs a 'defined outcome' strategy using options to provide a buffer against losses and participation in gains up to a cap in the emerging markets.

Composition The ETF primarily holds FLEX Options referencing the MSCI Emerging Markets Index. It doesn't directly hold stocks or bonds.

Market Share: PJAN holds a moderate market share within the defined outcome ETF space focused on emerging markets.

Total Net Assets (AUM): 30907155

Key Competitors

• FJAN
• OJUL

Competitive Landscape

The defined outcome ETF market is competitive, with several providers offering buffered and capped ETFs. PJAN's advantage lies in its specific focus on emerging markets with a July expiration. Disadvantages may include the complexity of understanding the defined outcome strategy compared to traditional ETFs.

Historical Performance: Historical performance depends on the market environment during the outcome period. Data for previous outcome periods are crucial for assessing effectiveness.

Benchmark Comparison: Performance should be compared to the MSCI Emerging Markets Index, taking into account the buffer and cap features. It won't track the benchmark exactly.

Expense Ratio: 0.79

Average Trading Volume

The ETF's average trading volume can vary, impacting ease of entry and exit.

Bid-Ask Spread

The bid-ask spread reflects the cost of trading, which can fluctuate based on market conditions.

Market Environment Factors

Emerging market economic growth, geopolitical risks, currency fluctuations, and investor sentiment significantly influence PJAN.

Growth Trajectory

Growth depends on investor demand for defined outcome strategies and the performance of emerging markets. Changes to strategy and holdings are generally tied to the defined outcome period.

Competitive Edge

PJAN's defined outcome strategy offers a unique risk management approach by providing a buffer against downside losses in emerging markets while allowing participation in potential gains up to a cap. This attracts investors seeking to limit risk in volatile markets. The specific July expiration date further differentiates it. Innovator's focus on defined outcome ETFs provides expertise in managing the complex options strategies required.

Volatility

Volatility is influenced by the emerging markets index and the options strategy. The buffer aims to mitigate downside volatility, but the cap limits upside participation.

Market Risk

Market risk is primarily related to the performance of the underlying MSCI Emerging Markets Index and the specific FLEX options used to construct the buffer.

Ideal Investor Profile

Investors seeking downside protection in emerging markets, those with a moderate risk tolerance, and those who understand defined outcome strategies.

Market Risk

Suitable for investors seeking defined risk parameters over a one-year period, rather than long-term, uncapped exposure to emerging markets.

The Innovator Emerging Markets Power Buffer ETF - July (PJAN) offers a defined outcome investment strategy, providing a buffer against downside risk in emerging markets over a one-year period, while also allowing participation in potential upside up to a cap. It is suitable for investors seeking defined risk parameters and understanding the mechanics of buffered investment products. The ETF's performance is tied to the emerging markets index and the success of the option strategy. The 0.79% expense ratio should be considered when evaluating performance and suitability.

Data Sources:

• Innovator ETFs Website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investors should consult with a financial advisor before making any investment decisions.