Innovator MSCI EAFE Power Buffer ETF - July (IJUL)

Overview

The Innovator MSCI EAFE Power Buffer ETF - July (IJUL) is designed to provide investors with buffered exposure to the MSCI EAFE Index while limiting downside risk over a defined outcome period. It aims to participate in the gains of the MSCI EAFE Index up to a cap, while buffering against a certain percentage of losses. The ETF uses a 'defined outcome' strategy.

Reputation and Reliability

Innovator Capital Management is known for its defined outcome ETFs, a growing segment within the ETF market. They are generally considered a reliable issuer.

Management Expertise

Innovator Capital Management specializes in defined outcome ETFs, demonstrating a strong understanding of option strategies required for these types of funds.

Goal

To provide buffered exposure to the returns of the MSCI EAFE Index while limiting downside risk over a defined outcome period (one year).

Investment Approach and Strategy

Strategy: The ETF employs a defined outcome strategy using FLEX options to provide a buffer against a specific percentage of losses in the MSCI EAFE Index, while also capping potential gains.

Composition The ETF primarily holds FLEX options referencing the MSCI EAFE Index. It may also hold cash or other short-term instruments.

Market Share: IJUL holds a small market share within the defined outcome and international equity ETF landscape.

Total Net Assets (AUM): 40327038

Key Competitors

• Innovator MSCI EAFE Power Buffer ETF - October (IOCT)
• Innovator MSCI EAFE Power Buffer ETF - January (IJAN)
• Innovator MSCI EAFE Power Buffer ETF - April (IAPR)

Competitive Landscape

The competitive landscape consists of other defined outcome ETFs, especially those focusing on international equity indices. IJUL's advantage lies in its specific defined outcome period starting in July, offering targeted risk management for investors. A disadvantage is the capped upside potential, which may limit returns in strongly bullish markets. Other EAFE index trackers offer uncapped upside, but without downside protection.

Historical Performance: Historical performance is dependent on the specific outcome period. Refer to Innovator's website for period-specific returns data.

Benchmark Comparison: Performance should be compared to the MSCI EAFE Index and other buffered or defined outcome strategies that target the same index. Relative to the MSCI EAFE, the returns are capped, but downside protection is in place.

Expense Ratio: 0.79

Average Trading Volume

The average trading volume for IJUL is moderate, meaning it can be easily traded by most retail investors.

Bid-Ask Spread

The bid-ask spread is generally moderate, and varies due to market conditions and fund volume; this is especially important when the defined outcome period is near completion.

Market Environment Factors

Global economic conditions, currency fluctuations, and geopolitical events can significantly impact the performance of the MSCI EAFE Index and, consequently, IJUL. The demand for downside protection influences the flows into IJUL.

Growth Trajectory

Growth depends on investor demand for buffered investment strategies. Strategy adjustments may occur over time based on Innovator's assessment of market conditions and the availability of suitable options.

Competitive Edge

IJULu2019s competitive edge lies in its defined outcome investment strategy, specifically tailored to provide a buffer against downside risk in the MSCI EAFE Index during a defined period. The use of FLEX options allows for precise control over the buffer and cap levels. This strategy attracts investors seeking downside protection with predictable outcomes. Its focused approach within a defined timeframe sets it apart from broad-based international equity ETFs.

Volatility

Volatility is reduced compared to the direct MSCI EAFE Index exposure due to the buffer. However, the ETF is still subject to market risk.

Market Risk

Market risk includes potential losses in the underlying MSCI EAFE Index due to economic downturns, geopolitical events, or other market factors. The capped upside limits participation in strong bull markets. Investors also need to understand the FLEX options strategy and the defined outcome period.

Ideal Investor Profile

The ideal investor is risk-averse and seeks downside protection with a predictable outcome over a one-year period. They understand the trade-off between capped upside potential and downside risk management.

Market Risk

IJUL is suitable for long-term investors seeking buffered exposure to international equities with a defined outcome strategy. It is less suitable for active traders seeking high-growth opportunities or passive index followers desiring uncapped market returns.

Innovator MSCI EAFE Power Buffer ETF - July (IJUL) offers buffered exposure to the MSCI EAFE Index over a defined one-year period, providing downside protection in exchange for capped upside potential. It utilizes FLEX options to achieve its investment objective, making it suitable for risk-averse investors seeking defined outcome strategies. The ETF's performance is directly linked to the MSCI EAFE Index, and its defined outcome characteristic separates it from standard international equity ETFs. However, investors should carefully consider the capped upside and the defined outcome period before investing.

Data Sources:

• Innovator Capital Management Website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.