Innovator Power Buffer Step-Up Strategy ETF (PSTP)

Overview

The Innovator Power Buffer Step-Up Strategy ETF seeks to provide investors with exposure to the price return of the SPDR S&P 500 ETF Trust (SPY), up to a predetermined cap, while buffering against a defined level of losses. It employs a defined outcome strategy over a one-year investment period.

Reputation and Reliability

Innovator Capital Management is known for its defined outcome ETFs and has a solid track record in creating and managing these types of funds.

Management Expertise

The management team has expertise in structured investments and derivatives, which are essential for managing defined outcome ETFs.

Goal

To provide investment returns that correspond to the price return of the SPDR S&P 500 ETF Trust (SPY), up to a predetermined cap, while buffering against a defined level of losses over a one-year period.

Investment Approach and Strategy

Strategy: The ETF utilizes a defined outcome strategy, employing FLEX Options to achieve its objective. It does not directly track an index but aims to match the performance of SPY within defined parameters.

Composition The ETF primarily holds FLEX Options on the SPDR S&P 500 ETF Trust (SPY).

Market Share: Data unavailable.

Total Net Assets (AUM): Data unavailable.

Key Competitors

• Defined Outcome ETFs

Competitive Landscape

The competitive landscape includes other defined outcome ETFs with different levels of downside protection, upside caps, and underlying assets. Innovator's Power Buffer Step-Up Strategy ETFs offer a variety of buffer levels and cap rates, providing investors with choice based on their risk tolerance. Compared to competitors, Innovator offers a range of defined outcome ETFs, giving investors choice based on risk/reward preferences.

Historical Performance: Historical performance data is dependent on the specific Innovator Power Buffer Step-Up Strategy ETF and available on its fund fact sheet.

Benchmark Comparison: The ETF's performance should be compared to SPY to gauge its effectiveness in achieving its defined outcome. Benchmark comparison is based on the cap rate and buffer in place.

Expense Ratio: Data unavailable.

Average Trading Volume

The average trading volume will vary by specific ETF, but it should be sufficient for most investors. Data unavailable.

Bid-Ask Spread

The bid-ask spread should be relatively tight, reflecting the ETF's underlying liquidity. Data unavailable.

Market Environment Factors

Economic indicators, interest rates, and market volatility influence the performance of the SPY and, consequently, the ETF's returns. The success of the strategy depends on market movement relative to the pre-defined buffer and cap.

Growth Trajectory

The ETF's growth trajectory depends on investor demand for defined outcome strategies and the attractiveness of its specific buffer and cap rates. Changes to strategy are announced in advance of the next annual reset.

Competitive Edge

Innovator ETFs pioneered the defined outcome ETF category, giving them a first-mover advantage. Their extensive suite of defined outcome ETFs allows investors to customize their risk/reward profile. Innovator's focus on defined outcome strategies provides a differentiated offering compared to traditional index-tracking ETFs. This strategy offers both downside protection and upside potential (up to a cap), catering to risk-averse investors.

Volatility

The ETF's volatility is limited by its defined outcome strategy. Investors are protected from losses up to the buffer level, but they also forgo potential gains above the cap.

Market Risk

The ETF is subject to market risk related to the SPDR S&P 500 ETF Trust (SPY). If the SPY experiences a significant decline, the ETF's value will decrease, although it is buffered against a defined level of losses.

Ideal Investor Profile

The ideal investor is risk-averse and seeks a predetermined level of downside protection while participating in potential market gains up to a capped amount.

Market Risk

This ETF is suitable for long-term investors who prioritize capital preservation and predictable returns. It might not be ideal for active traders seeking maximum upside potential.

The Innovator Power Buffer Step-Up Strategy ETF offers a defined outcome investment strategy, providing investors with downside protection and capped upside potential linked to the SPDR S&P 500 ETF Trust (SPY). It appeals to risk-averse investors who seek to limit potential losses while participating in market gains. Its innovative approach allows for predictable returns within specified parameters. Investors should consider the cap rate, buffer level, and expense ratio when evaluating this ETF.

Data Sources:

• Innovator Capital Management website
• ETF.com
• SEC filings

Disclaimers:

The information provided is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Performance data is historical and does not guarantee future results. Defined outcome ETFs involve risk and may not be suitable for all investors.