Innovator MSCI EAFE Power Buffer ETF January (IJAN)

Overview

The Innovator MSCI EAFE Power Buffer ETF January (IJAN) seeks to provide investors with buffered exposure to the MSCI EAFE Index, up to a predetermined cap, while protecting against a specific level of downside risk over a one-year period. It targets developed market equities outside the US and Canada. The ETF utilizes a 'defined outcome' strategy using FLEX Options.

Reputation and Reliability

Innovator Capital Management is known for its defined outcome ETFs. They have a track record of managing these specialized strategies.

Management Expertise

Innovator's management team has expertise in options trading and structured finance, crucial for managing defined outcome ETFs.

Goal

To provide a defined level of downside buffer and upside cap potential to the performance of the MSCI EAFE Index over a one-year period, reset annually in January.

Investment Approach and Strategy

Strategy: The ETF does not directly track the MSCI EAFE Index but uses FLEX Options to achieve defined downside protection and upside participation.

Composition The ETF's primary holding consists of FLEX Options referencing the MSCI EAFE Index. It also may hold cash or other short-term securities for collateral purposes.

Market Share: IJAN holds a niche market share within the defined outcome ETF space, specifically targeting EAFE exposure.

Total Net Assets (AUM): 36460000

Key Competitors

• FT Cboe Vest U.S. Equity Deep Buffer ETF - January (DJAN)
• Innovator U.S. Equity Power Buffer ETF - January (PJAN)

Competitive Landscape

The competitive landscape consists of other defined outcome ETFs that focus on different regions or use different buffer/cap strategies. IJAN's advantage lies in its EAFE focus, while its disadvantage is the limited upside cap, which may underperform the MSCI EAFE in strong bull markets. Competitors offer different levels of risk and reward, appealing to various investor risk tolerances.

Historical Performance: Historical performance depends on the specific outcome period (January to January) and the performance of the MSCI EAFE Index during that time. Actual returns will vary based on the buffer, cap, and market conditions.

Benchmark Comparison: The ETF's performance should be compared to the MSCI EAFE Index to assess the effectiveness of the buffer and cap strategy. It will generally underperform the index in up markets exceeding the cap and outperform in down markets up to the buffer.

Expense Ratio: 0.79

Average Trading Volume

IJAN's average trading volume is moderate, indicating reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread varies based on market conditions but is generally manageable for an ETF of this type.

Market Environment Factors

Economic growth in developed markets outside the US and Canada, interest rate policies of central banks, and geopolitical events can all impact the performance of the MSCI EAFE Index and, consequently, IJAN.

Growth Trajectory

IJAN's growth depends on investor demand for defined outcome strategies and the performance of the MSCI EAFE index. The ETF resets annually, redefining the buffer and cap levels.

Competitive Edge

IJAN's competitive advantage lies in its defined outcome strategy, providing investors with a known range of potential returns over a specific period. The ETF's focus on the MSCI EAFE index is another advantage. This allows it to provide downside protection and limited upside exposure to international developed markets (excluding US & Canada). Innovator's expertise in managing option-based ETFs contributes to its appeal.

Volatility

IJAN's volatility is generally lower than the MSCI EAFE Index due to the downside buffer, but it also forgoes potential upside beyond the cap.

Market Risk

IJAN is subject to market risk associated with the MSCI EAFE Index, including equity market fluctuations and currency risk.

Ideal Investor Profile

IJAN is suitable for investors seeking to participate in the potential upside of international developed markets while mitigating downside risk over a one-year period. It is appropriate for those who understand and accept the trade-off between upside potential and downside protection.

Market Risk

IJAN is best suited for long-term investors who are looking for a defined outcome strategy to manage risk and achieve specific financial goals.

Innovator MSCI EAFE Power Buffer ETF January (IJAN) offers a defined outcome investment strategy targeting international developed markets. It uses FLEX Options to provide downside protection and capped upside participation linked to the MSCI EAFE index. The ETF's annual reset ensures a consistent approach to risk management, making it suitable for long-term investors seeking a buffered exposure strategy. Its performance depends heavily on the MSCI EAFE's movements and the defined buffer and cap levels.

• DJAN
• PJAN
• UJAN
• MJAN
• OJAN
• TJAN

Data Sources:

• Innovator Capital Management
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Market share estimates are approximate.