Innovator Power Buffer Step-Up Strategy ETF (PSTP)PSTP

ETF Innovator Power Buffer Step-Up Strategy ETF (BJUL)

Profile:

ETF Innovator Power Buffer Step-Up Strategy ETF (BJUL) is an actively managed exchange-traded fund that aims to provide investors with a potential buffer against market downturns and deliver a monthly income stream. BJUL invests primarily in a basket of exchange-traded notes (ETNs) that are linked to the performance of the S&P 500 Index.

Objective:

The primary investment goal of BJUL is to generate a consistent monthly income stream while also aiming to protect investors' capital during market downturns.

Issuer:

Innovator Capital Management, LLC

• Reputation and Reliability: Innovator Capital Management is a relatively new player in the ETF space, founded in 2014. However, they have gained a reputation for offering innovative and unique ETF products.
• Management: The management team has extensive experience in the financial industry, with expertise in structured products, derivatives, and ETF development.

Market Share:

BJUL is a relatively small ETF, with a market share of less than 0.1% within the actively managed equity ETF category.

Total Net Assets:

As of November 10, 2023, BJUL has total net assets of approximately $32.8 million.

Moat:

• Unique Strategy: BJUL utilizes a proprietary strategy that combines ETNs with buffer options to provide a potential downside cushion and income generation.
• Active Management: The ETF is actively managed by Innovator's experienced team, allowing for flexibility and strategic adjustments.

Financial Performance:

BJUL's performance has been mixed since its inception in 2021. It has outperformed the S&P 500 during periods of market volatility but has underperformed in flat or rising markets.

Benchmark Comparison:

BJUL's performance has tracked closely with the S&P 500 VIX Short-Term Futures Index, which measures volatility expectations in the stock market.

Growth Trajectory:

The growth trajectory of BJUL is uncertain. The ETF is relatively new, and its performance will depend on market conditions and the effectiveness of its strategy.

Liquidity:

• Average Trading Volume: The average daily trading volume of BJUL is approximately 5,000 shares.
• Bid-Ask Spread: The bid-ask spread is typically around 0.10%, indicating relatively good liquidity.

Market Dynamics:

• Economic Indicators: BJUL's performance could be impacted by economic indicators such as interest rates, inflation, and economic growth.
• Sector Growth Prospects: The ETF's performance will be influenced by the growth prospects of the S&P 500 Index.
• Current Market Conditions: BJUL could benefit from periods of market volatility, where its buffer protection feature may provide value.

Competitors:

• Invesco S&P 500 Low Volatility ETF (SPLV)
• iShares Edge S&P 500 Minimum Volatility ETF (USMV)
• ProShares S&P 500 Dividend Aristocrats ETF (NOBL)

Expense Ratio:

BJUL has an expense ratio of 0.95%.

Investment Approach and Strategy:

• Strategy: BJUL is actively managed and invests primarily in ETNs linked to the S&P 500 Index. It utilizes a buffer strategy that aims to protect against market downturns and generate monthly income.
• Composition: The ETF's portfolio consists primarily of ETNs and may also include options and other derivative instruments.

Key Points:

• Seeks to provide monthly income and downside protection.
• Actively managed with a unique buffer strategy.
• Relatively small and new ETF.
• Performance has been mixed since inception.

Risks:

• Volatility: BJUL's performance may be volatile, particularly during periods of market turbulence.
• Market Risk: The ETF's returns are tied to the performance of the S&P 500 Index and related ETNs.
• Counterparty Risk: The ETF relies on the creditworthiness of the ETN issuers.

Who Should Consider Investing:

BJUL may be suitable for investors who:

• Seek monthly income generation.
• Want downside protection during market downturns.
• Are comfortable with the risks associated with actively managed, non-diversified ETFs.

Fundamental Rating Based on AI:

Based on an AI analysis incorporating financial health, market position, and future prospects, BJUL receives a Fundamental Rating of 6.5 out of 10. This rating reflects the ETF's unique strategy and potential appeal to certain investors, but also acknowledges its limited track record and dependence on market conditions.

Resources and Disclaimers:

• Innovator Capital Management website: https://innovatorcap.com/etf/bjul
• ETF.com: https://www.etf.com/etf-profile/BJUL
• Morningstar: https://www.morningstar.com/etfs/arcx/bjul/quote

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Investors should consult with a qualified financial advisor before making any investment decisions.