Innovator ETFs Trust - Innovator Emerging Markets Power Buffer ETF - July (EOCT)

Overview

The Innovator Emerging Markets Power Buffer ETF - July (JULY) seeks to provide investors with capped exposure to the iShares MSCI Emerging Markets ETF (EEM), while buffering against potential losses over a one-year period. It employs a defined outcome strategy, offering a limited upside and downside protection. The ETF uses FLEX Options to achieve its investment objective.

Reputation and Reliability

Innovator ETFs is known for its defined outcome ETFs, providing innovative investment strategies with pre-defined risk and return parameters. They have a solid reputation for delivering on their defined outcome promises.

Management Expertise

Innovator ETFs' management team has experience in structuring and managing defined outcome investment products, using options strategies to meet specific investor needs.

Goal

The fund seeks to provide specific downside risk mitigation and capped upside return over a one-year period tied to the performance of the iShares MSCI Emerging Markets ETF (EEM).

Investment Approach and Strategy

Strategy: The ETF does not track an index directly. Instead, it uses a defined outcome strategy involving FLEX Options on the EEM to achieve its objective of providing a buffer against losses and a capped upside.

Composition The ETF holds FLEX Options on the EEM, with a small portion potentially held in cash or other short-term investments. The underlying asset being the iShares MSCI Emerging Markets ETF (EEM).

Market Share: JULY holds a small market share within the broader emerging markets ETF category.

Total Net Assets (AUM): 27675567

Key Competitors

• EEM
• VWO
• IEMG

Competitive Landscape

The emerging markets ETF landscape is dominated by broad market-cap weighted ETFs like EEM, VWO, and IEMG. JULY differentiates itself through its defined outcome strategy, attracting investors seeking downside protection and capped upside. A disadvantage is the capped upside compared to competitors.

Historical Performance: Historical performance will vary depending on the defined outcome period. Performance is tied to the EEM's performance, capped by the pre-defined upside and buffered by the downside protection.

Benchmark Comparison: The benchmark is the iShares MSCI Emerging Markets ETF (EEM). Performance comparison depends on the level of downside protection and upside cap, and the EEM's return during the specific period.

Expense Ratio: 0.79

Average Trading Volume

JULY's average trading volume is relatively low, which can impact trading costs.

Bid-Ask Spread

The bid-ask spread can be wider compared to more liquid emerging markets ETFs due to lower trading volume.

Market Environment Factors

Economic indicators of emerging markets, global trade policies, currency fluctuations, and geopolitical risks all influence the performance of JULY through its exposure to EEM.

Growth Trajectory

Growth is dependent on investor demand for defined outcome products in the emerging markets space. Changes to the options strategy or underlying EEM holdings are possible but unlikely.

Competitive Edge

JULY's competitive advantage lies in its defined outcome strategy, offering downside protection and capped upside, which attracts risk-averse investors. Unlike traditional ETFs, JULY offers a specific risk management tool. The ETF targets investors who want to participate in emerging markets growth, while mitigating potential losses during a defined period. This targeted approach sets it apart from broad market ETFs.

Volatility

JULY's volatility is managed due to the defined outcome strategy, aiming to provide a buffer against market downturns. However, the capped upside limits potential gains during bull markets.

Market Risk

Market risk is tied to the performance of the underlying iShares MSCI Emerging Markets ETF (EEM) and the potential for emerging market equities to decline. Investors could lose money if the EEM declines beyond the defined buffer.

Ideal Investor Profile

Ideal investors are those seeking downside protection and capped upside exposure to emerging markets, typically risk-averse investors with a defined investment horizon.

Market Risk

JULY is suitable for investors with a short-term investment horizon (one year), who prioritize downside protection over maximizing potential returns, and are comfortable with capped upside potential.

The Innovator Emerging Markets Power Buffer ETF - July offers a defined outcome strategy on the iShares MSCI Emerging Markets ETF (EEM). It provides downside protection up to a certain level, but at the cost of capping potential upside gains. The fund is suitable for risk-averse investors with a short-term outlook seeking buffered exposure to emerging markets. However, its lower liquidity and capped potential returns need to be considered. Investors should carefully assess its defined outcome parameters before investing.

Data Sources:

• Innovator ETFs website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions.