Innovator MSCI Emerging Markets Power Buffer ETF - July (EJUL)

Overview

The Innovator MSCI Emerging Markets Power Buffer ETF - July (EJUL) seeks to provide investment results that correspond, before fees and expenses, to the return of the MSCI Emerging Markets Index, while providing a capped buffer against potential market declines over a defined one-year period. It utilizes a 'buffer' strategy, aiming to protect against the first -15% of losses in the MSCI Emerging Markets Index over its outcome period. The ETF invests in a portfolio of flexible exchange options. It primarily targets emerging markets equity.

Reputation and Reliability

Innovator Capital Management is known for its defined outcome ETFs and their innovative approach to investment strategies. They are generally considered a reliable issuer, though their products are complex.

Management Expertise

Innovator Capital Management specializes in defined outcome ETFs, which requires a specific expertise in options strategies and market forecasting.

Goal

The primary investment goal of EJUL is to provide a defined level of downside protection (a buffer against losses) while offering participation in the potential gains of the MSCI Emerging Markets Index over a one-year period, reset annually.

Investment Approach and Strategy

Strategy: EJUL employs a defined outcome strategy that utilizes flexible exchange options to provide a buffer against market declines in the MSCI Emerging Markets Index. The buffer typically protects against the first -15% of losses.

Composition The ETF holds flexible exchange options, with its performance linked to the MSCI Emerging Markets Index.

Market Share: EJUL's market share within the buffered emerging markets ETF segment is relatively small, as this is a niche market.

Total Net Assets (AUM): 21774300

Key Competitors

• FT Cboe Vest U.S. Equity Buffer ETF - July (JULY)
• Innovator U.S. Equity Power Buffer ETF - July (PJUL)
• Innovator U.S. Equity Ultra Buffer ETF - July (UJUL)

Competitive Landscape

The competitive landscape consists of other defined outcome ETFs, some focusing on different market segments (e.g., U.S. equities). EJUL's advantage lies in its focus on emerging markets, providing downside protection in a potentially volatile asset class. Its disadvantage is the cap on potential gains, which limits upside participation compared to unbuffered emerging markets ETFs.

Historical Performance: Historical performance data is available, showing returns over various periods like YTD, 1 year, 3 year, and 5 year. Historical Performance is dependent on the market index it is based on.

Benchmark Comparison: The ETF's performance is compared to the MSCI Emerging Markets Index. The comparison reveals the cost of the buffer, as the ETF's upside participation is capped compared to the index.

Expense Ratio: 0.79

Average Trading Volume

EJUL's average trading volume is moderate and it can vary based on market interest and overall trading activity.

Bid-Ask Spread

The bid-ask spread for EJUL can vary but is generally moderate, reflecting its liquidity.

Market Environment Factors

Economic indicators, emerging market growth prospects, geopolitical events, and global trade conditions significantly impact EJUL. Changes in investor sentiment towards emerging markets also play a role.

Growth Trajectory

The growth trajectory of EJUL depends on investor demand for downside protection in emerging markets. Changes in the underlying index composition or the options strategy could also affect its performance.

Competitive Edge

EJUL's competitive advantage lies in its defined outcome strategy, which provides a specific level of downside protection against emerging markets volatility. This attracts risk-averse investors seeking exposure to emerging markets with limited downside risk. The defined outcome feature is attractive for investors who want to know their potential returns or losses upfront. This niche focus differentiates it from broad emerging markets ETFs.

Volatility

EJUL's volatility is typically lower than the MSCI Emerging Markets Index due to the buffer strategy, but it is still subject to emerging markets risk.

Market Risk

The primary market risk is the potential for losses in the underlying MSCI Emerging Markets Index. The capped upside and the cost of the options strategy also represent risks.

Ideal Investor Profile

The ideal investor for EJUL is risk-averse and seeking exposure to emerging markets with a defined level of downside protection. They are willing to forgo some potential upside gains in exchange for reduced risk.

Market Risk

EJUL is best suited for long-term investors who are concerned about potential market downturns but still want to participate in the growth of emerging markets. It is not ideal for active traders seeking maximum upside potential.

EJUL is a defined outcome ETF that provides a buffer against losses in the MSCI Emerging Markets Index over a one-year period. It is designed for risk-averse investors seeking exposure to emerging markets with limited downside risk, sacrificing some potential upside gains. The ETF uses a options strategy to provide a capped loss protection. Its performance is tied to MSCI Emerging Markets Index with reduced volatility. It is best suited for long-term investors who are concerned about potential market downturns but still want to participate in the growth of emerging markets.

Data Sources:

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

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Investors should conduct their own due diligence before making any investment decisions. Past performance is not indicative of future results.