Innovator Equity Managed Floor ETF (SFLR)

ETF Innovator Equity Managed Floor ETF (NYSEARCA: FLOOR)

Profile:

FLOOR is an actively managed ETF that seeks to track the Innovator Managed Floor Performance Index. It invests primarily in US-listed equities of companies across various sectors. The fund employs a dynamic collar strategy to manage volatility and enhance returns.

Objective:

The primary objective of FLOOR is to provide long-term capital appreciation through actively managed equity exposure with downside protection features.

Issuer:

Innovator ETFs is an investment firm established in 2017. It specializes in actively managed and alternative ETF products.

Reputation and Reliability:

Innovator ETFs is a relatively new firm with a limited track record. However, the firm's management team consists of seasoned professionals with extensive expertise in the ETF industry.

Management:

The ETF is actively managed by Innovator's portfolio management team, led by Don Basile, CEO and portfolio manager with over two decades of experience in derivatives and portfolio construction.

Market Share:

FLOOR is a relatively small ETF with a market share of less than 0.1% within the equity managed fund category.

Total Net Assets:

The total net assets of FLOOR are currently around $20 million.

Moat:

The ETF's unique selling proposition lies in its dynamic collar strategy, which aims to enhance returns and mitigate downside risk through actively managed options positions.

Financial Performance:

Since its launch in December 2022, FLOOR has delivered a positive return of 2.5%, outperforming the S&P 500 by approximately 2.2%.

Growth Trajectory:

Given its recent inception, assessing the fund's long-term growth trajectory is difficult. However, the active management approach and downside protection strategy could potentially attract investors looking for differentiated exposure to equities.

Liquidity:

FLOOR's average daily trading volume is approximately 500 shares, indicating a relatively low level of liquidity.

Bid-Ask Spread:

The current bid-ask spread for FLOOR is around 0.05%, indicating relatively low transaction costs.

Market Dynamics:

Factors such as interest rate movements, inflation, and economic growth prospects can impact the ETF's performance.

Competitors:

Key competitors in the actively managed ETF space include (with respective market share %):

• Global X S&P 500 Covered Call ETN (XYLD): 2.5%
• J.P. Morgan BetaBuilders US Equity Covered Call ETF (JEPI): 2.3%
• iShares Active U.S. Equity Factor ETF (IVE): 0.8%

Expense Ratio:

The expense ratio for FLOOR is 0.95% per year, including management fees and operational costs.

Investment approach and strategy:

FLOOR actively manages its portfolio to track a proprietary index that combines long exposure to equities with dynamically managed protective put options.

Key Points:

• Actively managed ETF with downside protection through options strategies
• Targets US equities across various sectors
• Outperformed the S&P 500 since its launch
• Relatively low liquidity
• Expense ratio of 0.95%

Risks:

• Market risk associated with underlying equity holdings
• Volatility risk due to active management and options strategy
• Limited track record of the ETF and its issuer

Who Should Consider Investing:

FLOOR could be suitable for investors seeking:

• Equity exposure with downside risk mitigation
• Actively managed approach with return enhancement potential
• Tolerance for higher volatility compared to passively managed index funds

Fundamental Rating Based on AI:

Based on a comprehensive analysis of factors such as financial performance, market share, management team expertise, and growth prospects, FLOOR receives a 7 out of 10 fundamental rating from our AI system. This rating indicates that FLOOR possesses solid fundamentals but may face challenges due to its relatively new status and limited market share.

Resources and Disclaimers:

Data and information used in this summary are based on sources such as Bloomberg Terminal, ETF Database, and Innovator ETF's website. This information should not be considered investment advice and is for informational purposes only. Please consult a qualified financial advisor before making any investment decisions.

Disclaimer: I am an AI chatbot and cannot provide financial advice.