Innovator MSCI Emerging Markets Power Buffer ETF January (EJAN)

Overview

The Innovator MSCI Emerging Markets Power Buffer ETF January (EJAN) seeks to provide exposure to the MSCI Emerging Markets Index while buffering investors against the first -9.90% of losses over a one-year period, reset annually in January. It uses Flex Options to achieve its objective. The ETF is designed for investors seeking downside protection in emerging markets.

Reputation and Reliability

Innovator Capital Management is known for its defined outcome ETFs and is generally considered a reliable issuer with a focus on innovation.

Management Expertise

Innovator Capital Management specializes in structured investment products, indicating expertise in managing options-based ETFs.

Goal

To provide investment returns that correspond to the price return of the MSCI Emerging Markets Index, up to a predetermined cap, while providing a buffer against the first -9.90% of losses.

Investment Approach and Strategy

Strategy: The ETF does not directly track the MSCI Emerging Markets Index; instead, it uses Flex Options to create a defined outcome strategy.

Composition The ETF primarily holds Flex Options on the MSCI Emerging Markets Index. It may also hold cash or other short-term instruments.

Market Share: Insufficient data available to provide an accurate market share.

Total Net Assets (AUM): 69000000

Key Competitors

• iShares Core MSCI Emerging Markets ETF (IEMG)
• Vanguard FTSE Emerging Markets ETF (VWO)
• Schwab Fundamental Emerging Markets Large Company Index ETF (FNDE)

Competitive Landscape

The ETF industry is highly competitive, with several large players offering emerging market exposure. EJAN differentiates itself through its defined outcome strategy, providing downside protection with a capped upside. This is advantageous for risk-averse investors but may underperform in strongly rising markets compared to traditional emerging market ETFs. Traditional ETFs offer direct exposure with lower expense ratio.

Historical Performance: Historical performance data is not directly available in this structured format but should be obtained from financial data providers. The key is to understand how it behaves relative to the cap and buffer.

Benchmark Comparison: The ETF's performance should be compared to the MSCI Emerging Markets Index to assess the effectiveness of the buffer and the cost of the cap.

Expense Ratio: 0.79

Average Trading Volume

The average trading volume is approximately 26,749 shares, indicating moderate liquidity.

Bid-Ask Spread

The bid-ask spread is around 0.13%, which is a reasonable cost for trading this ETF.

Market Environment Factors

Emerging market growth, global trade policies, interest rate fluctuations, and currency risks all affect EJAN's performance.

Growth Trajectory

The ETF's growth depends on the demand for defined outcome investments and investor sentiment towards emerging markets. Changes to strategy and holdings are typically related to the reset of the Flex Options in January.

Competitive Edge

EJAN's competitive advantage lies in its defined outcome strategy, which provides downside protection. It targets investors seeking limited downside risk in the volatile emerging markets. This unique approach differentiates it from traditional index-tracking ETFs. The buffer protects against initial losses, while the cap limits potential gains, making it suitable for specific risk profiles.

Volatility

The ETF's volatility is influenced by the volatility of the underlying MSCI Emerging Markets Index and the structure of the Flex Options.

Market Risk

Specific risks include emerging market currency fluctuations, political instability, and economic downturns, which can negatively impact the underlying assets of the MSCI Emerging Markets Index.

Ideal Investor Profile

EJAN is ideal for risk-averse investors who want exposure to emerging markets but seek a level of downside protection. Investors who are willing to forgo some potential upside in exchange for limited downside are suitable.

Market Risk

EJAN is suitable for long-term investors with a moderately conservative risk tolerance, as well as tactical investors looking to manage downside risk during periods of market uncertainty.

The Innovator MSCI Emerging Markets Power Buffer ETF January (EJAN) provides exposure to emerging markets while buffering against initial losses. It utilizes Flex Options to achieve a defined outcome. This approach appeals to risk-averse investors willing to trade potential upside for downside protection. It is important to consider the capped upside and the expense ratio before investing. The ETF's performance is directly tied to the MSCI Emerging Markets Index and the effectiveness of its options strategy.

Data Sources:

• Innovator Capital Management website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor. Past performance is not indicative of future results.