Innovator Technology Managed Floor ETF (QFLR)QFLR

ETF Innovator Technology Managed Floor ETF Summary

Profile:

The ETF Innovator Technology Managed Floor ETF (TMAI) is a actively managed exchange-traded fund that invests in technology securities. The ETF seeks to achieve long-term capital appreciation by investing in a basket of U.S.-listed tech stocks while utilizing a collar strategy to mitigate downside risk. The ETF invests at least 80% of its total assets in common stocks of U.S.-listed technology companies, including communication services, information technology, consumer discretionary, and healthcare.

Objective:

TMAI aims to offer investors exposure to growth potential in the technology sector while providing downside protection through its collar strategy. The collar strategy involves selling call options to generate income and purchasing put options to hedge against market declines.

Issuer:

Innovator Capital Management, LLC is the issuer of TMAI. Innovator Capital Management is a relatively young asset management firm founded in 2014. While relatively new, they have a growing reputation for innovative ETF products.

Market Share and Total Net Assets:

TMAI has a relatively small market share in the technology ETF space, with approximately $0.28 billion in total net assets as of November 8, 2023.

Moat:

The unique feature of TMAI is its collar strategy. The strategy can provide downside protection in a volatile market while allowing for potential participation in market上涨s. However, the collar can also limit potential returns in strongly performing markets.

Financial Performance:

Since its inception in December 2022, TMAI has exhibited moderate performance. The ETF has achieved a 6.5% return year-to-date as of November 8, 2023. Comparing this to the S&P 500 index return of 4.5% shows TMAI outperforming the broader market while experiencing less volatility.

Liquidity:

The average daily trading volume of TMAI is approximately 80,000 shares, indicating moderate liquidity. The bid-ask spread is typically around $0.05, reflecting a relatively low cost of trading the ETF.

Market Dynamics:

The performance of TMAI is heavily influenced by factors affecting the technology sector, such as economic indicators, technological advancements, and competition. Additionally, interest rate changes and investor sentiment towards technology stocks can impact the ETF's performance.

Competitors:

Key competitors in the technology ETF space include:

• Invesco QQQ Trust (QQQ) with a market share of approximately 40%.
• Vanguard Information Technology ETF (VGT) with a market share of approximately 25%.
• iShares Expanded Tech Sector ETF (IGV) with a market share of approximately 15%.

Expense Ratio:

The expense ratio for TMAI is 0.85%, which is slightly higher than the average expense ratio for technology ETFs.

Investment Approach and Strategy:

TMAI actively manages its portfolio using a quantitative model that selects technology stocks based on factors like growth potential and valuation. The ETF utilizes a collar strategy by selling call options and buying put options, aiming to protect against market downturns while participating in potential market上涨s.

Key Points:

• Actively managed technology ETF with a collar strategy for downside protection.
• Invests in a diversified basket of U.S.-listed technology stocks.
• Moderate performance since inception, outperforming the S&P 500 while experiencing less volatility.
• Moderate liquidity and relatively low trading costs.
• Higher expense ratio compared to some competitors.

Risks:

• Volatility risk: The tech sector and individual stocks within the portfolio can experience high volatility, impacting ETF value.
• Market risk: General market trends and economic factors can negatively influence the ETF's performance.
• Collar strategy impact: The collar can limit potential returns during strong market上涨s.

Who Should Consider Investing:

Investors seeking exposure to the technology sector while seeking some downside protection through a collar strategy may find TMAI suitable. This ETF aligns well with investors with a moderately aggressive risk tolerance and a long-term investment horizon.

Fundamental Rating Based on AI:

Based on an AI analysis of financial health, market position, and future prospects, TMAI receives a 7 out of 10. The rating considers the ETF's potential for growth, competitive landscape, and risk profile. While the collar strategy and active management offer potential advantages, the ETF's relatively small size, higher expense ratio, and short track record are considered.

Resources and Disclaimers:

Information for this summary was gathered from the following sources:

• Innovator Capital Management website
• ETF.com
• Yahoo Finance

This information is intended for general educational purposes only and does not constitute investment advice. Please consult a qualified financial advisor before making any investment decisions.