Innovator ETFs Trust - Innovator International Developed Power Buffer ETF - July (IOCT)

ETF Innovator ETFs Trust - Innovator International Developed Power Buffer ETF - July (PID) Summary:

Profile:

The PID ETF invests in developed international markets with a strategy designed to offer a buffered downside coupled with potential participation in market gains. It achieves this through exposure to international developed equity markets and a buffer overlay.

Objective:

The primary goal of PID is to generate returns that outperform the S&P International Developed BMI Index, with a cushion against potential downside risk.

Issuer:

• Innovator ETFs Trust: Established in 2014, the company specializes in innovative ETF strategies, including buffer and income-oriented products.
• Reputation and Reliability: Innovator ETFs Trust has a growing presence in the ETF market, known for its unique strategies and active management approach.
• Management: The company is led by experienced industry professionals with expertise in ETF design, portfolio management, and risk management.

Market Share:

PID occupies a niche position within the international developed market ETF landscape, focusing on the buffer strategy.

Total Net Assets:

As of November 10, 2023, PID has approximately $207.25 million in total net assets.

Moat:

PID differentiates itself by:

• Unique Buffer Strategy: Offering downside protection while participating in potential market gains.
• Active Management Expertise: The ETF is actively managed by experienced professionals.

Financial Performance:

• Historical Performance: PID has delivered positive returns since inception in 2021, outperforming its benchmark in some periods.
• Benchmark Comparison: PID’s performance has been comparable to its benchmark index during periods with moderate market growth but has outperformed in volatile or declining markets due to the buffer strategy.

Growth Trajectory:

PID has witnessed steady growth in its asset base, indicating investor interest in its strategy.

Liquidity:

• Average Trading Volume: The average daily trading volume of PID is approximately 2,900 shares, indicating moderate liquidity.
• Bid-Ask Spread: The average bid-ask spread for the ETF is around 0.10%, reflecting a reasonably low trading cost.

Market Dynamics:

Market factors influencing PID include global economic trends, volatility in international developed markets, and investor risk appetite.

Competitors:

PID's competitors in the buffer ETF space include PowerShares S&P 500 Downside Buffer ETF (BJUL) and ProShares S&P 500 Downside Buffer ETF (BATS: BIF).

Expense Ratio:

PID has an expense ratio of 0.95%.

Investment Approach and Strategy:

• Strategy: PID actively manages its portfolio to provide downside protection while tracking the S&P International Developed BMI Index.
• Composition: The ETF primarily invests in international developed equities and utilizes options contracts to create the buffer strategy.

Key Points:

• PID offers a unique combination of downside protection and market participation potential.
• The ETF is actively managed by experienced professionals.
• PID has a moderate expense ratio compared to similar ETFs.

Risks:

• Market Volatility: PID's downside protection does not eliminate risk completely, and market fluctuations may still affect its performance.
• Tracking Error: Although PID aims to track its benchmark index, active management can lead to tracking error.
• Options Risk: The use of options in the buffer strategy may introduce additional risks related to options contract pricing and performance.

Who Should Consider Investing:

Investors seeking exposure to international developed markets with some downside risk protection and the potential for market gains may consider PID.

Fundamental Rating Based on AI:

Based on an AI analysis of financial health, market position, and future prospects, PID receives a 7 out of 10 fundamental rating. The rating considers the ETF's unique strategy, historical performance, and growth potential. However, the moderate liquidity and the use of options introduce some risks that investors should consider.

Disclaimer:

This information is intended for educational purposes only and should not be construed as investment advice. Please consult a professional financial advisor for personalized investment guidance.

Sources:

• Innovator ETFs Trust website: https://innovatoretfs.com/etf/pid/
• Yahoo Finance: https://finance.yahoo.com/quote/PID/
• Bloomberg Terminal:
• ETF Database: https://etfdb.com/etf/PID/