Innovator MSCI Emerging Markets Power Buffer ETF - April (EAPR)

Overview

The Innovator MSCI Emerging Markets Power Buffer ETF - April (APRZ) seeks to provide investors with buffered exposure to the MSCI Emerging Markets Index, protecting against the first 10% of losses each year, while capping upside potential.

Reputation and Reliability

Innovator ETFs is known for its defined outcome ETFs, which aim to provide specific downside protection and upside potential, considered a reliable innovator.

Management Expertise

Innovator ETFs has a dedicated team focusing on defined outcome strategies with experience in structuring and managing similar products.

Goal

To provide specific downside protection (buffer) against market losses in the MSCI Emerging Markets Index over a defined one-year outcome period, while participating in potential gains up to a cap.

Investment Approach and Strategy

Strategy: The ETF uses a defined outcome strategy employing Flex Options linked to the MSCI Emerging Markets Index to provide a buffer against the first 10% of losses each year, while limiting upside gains to a predetermined cap.

Composition The ETF primarily holds Flex Options on the MSCI Emerging Markets Index, with some allocation to cash or money market instruments for collateral purposes.

Market Share: APRZ's market share within the defined outcome emerging markets ETF category is moderate, but it represents a niche within the broader emerging markets ETF space.

Total Net Assets (AUM): 34749461

Key Competitors

• FT Cboe Vest U.S. Equity Deep Buffer ETF - April (DAPR)
• Innovator S&P 500 Power Buffer ETF - April (PAPR)
• Innovator MSCI EAFE Power Buffer ETF - April (IAPR)

Competitive Landscape

The defined outcome ETF market is becoming increasingly competitive, with many issuers launching similar products. APRZ competes with other defined outcome ETFs that offer downside protection and capped upside potential, differing primarily in the underlying index (MSCI Emerging Markets). APRZ benefits from Innovator's first-mover advantage and focus on defined outcome ETFs but faces competition from larger issuers with broader distribution networks.

Historical Performance: Historical performance will vary based on the outcome period's market performance. Returns are generally capped due to the nature of the defined outcome strategy. Investors should review past performance reports.

Benchmark Comparison: The ETF's performance should be compared to the MSCI Emerging Markets Index, taking into account the 10% buffer and the upside cap. Performance will differ significantly due to the defined outcome strategy.

Expense Ratio: 0.79

Average Trading Volume

The ETF's average trading volume is moderate, and it will vary based on market conditions.

Bid-Ask Spread

The bid-ask spread can fluctuate based on market volatility and trading volume, but it is generally moderate.

Market Environment Factors

Emerging market economic growth, political stability, trade policies, and currency fluctuations can all impact APRZ. Global market sentiment and investor risk appetite also play a significant role.

Growth Trajectory

APRZ's growth trajectory is tied to investor demand for defined outcome ETFs and the performance of emerging markets. Changes to the upside cap or buffer can impact investor interest.

Competitive Edge

APRZ's competitive advantage lies in its defined outcome strategy, which provides downside protection and capped upside potential in the emerging markets. This appeals to risk-averse investors who want exposure to emerging markets while mitigating potential losses. Innovator's expertise in defined outcome ETFs and their first-mover advantage contribute to its competitive edge. The specific buffer and cap levels can differentiate it from competitors.

Volatility

APRZ's volatility is generally lower than the MSCI Emerging Markets Index due to the downside buffer. However, the capped upside also limits potential gains during periods of high market growth.

Market Risk

APRZ is subject to emerging market risks, including economic and political instability, currency fluctuations, and geopolitical events. The defined outcome strategy mitigates some of this risk but does not eliminate it entirely.

Ideal Investor Profile

The ideal investor for APRZ is a risk-averse investor seeking exposure to emerging markets with a defined level of downside protection. It is suitable for investors who are willing to sacrifice potential upside gains for a buffer against losses.

Market Risk

APRZ is best suited for long-term investors who are looking for a defensive approach to emerging markets investing.

The Innovator MSCI Emerging Markets Power Buffer ETF - April (APRZ) provides a defined outcome strategy offering a 10% downside buffer against losses in the MSCI Emerging Markets Index, while capping upside potential. This ETF is suitable for risk-averse investors seeking exposure to emerging markets with a focus on downside protection. APRZ's performance will differ from the benchmark index due to the defined outcome strategy and capped gains. Innovator ETFs is a reputable issuer known for its expertise in structured and defined outcome investment products.

Data Sources:

• Innovator ETFs Website
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results. Market conditions can change rapidly and impact investment returns.