Innovator MSCI EAFE Power Buffer ETF January (IJAN)

Overview

Innovator MSCI EAFE Power Buffer ETF January (IJAN) seeks to provide investors with buffered exposure to the MSCI EAFE Index, protecting against the first -10% of losses each year while capping upside potential. It targets the developed market countries excluding the US & Canada. The ETF rebalances annually in January. The investment strategy involves using FLEX Options to achieve the buffered exposure.

Reputation and Reliability

Innovator Capital Management is known for its defined outcome ETFs and is generally considered reliable within the ETF market.

Management Expertise

Innovator Capital Management specializes in defined outcome strategies, bringing expertise in options and structured investments.

Goal

The primary investment goal of IJAN is to provide investors with exposure to the MSCI EAFE Index while buffering against a specified level of downside risk over a one-year period.

Investment Approach and Strategy

Strategy: IJAN employs a defined outcome strategy using FLEX Options to provide a buffer against the first 10% of losses in the MSCI EAFE Index while limiting upside participation.

Composition The ETF's assets primarily consist of FLEX Options on the MSCI EAFE Index.

Market Share: IJAN's market share within the defined outcome ETF category is moderate, constantly changing depending on the investor appetite for risk management tools.

Total Net Assets (AUM): 14140000

Key Competitors

• Innovator MSCI EAFE Power Buffer ETF (IAPR)
• Innovator MSCI EAFE Power Buffer ETF (IJUL)
• Innovator MSCI EAFE Power Buffer ETF (IOCT)

Competitive Landscape

The defined outcome ETF market is competitive, with Innovator ETFs dominating. IJAN competes with other Innovator defined outcome ETFs, differing primarily by their reset dates and corresponding buffer periods. A potential advantage is the defined risk profile; a disadvantage can be the capped upside.

Historical Performance: Historical performance data is not directly representable as it varies annually based on index performance and option pricing.

Benchmark Comparison: The ETF's performance should be compared against the MSCI EAFE Index, considering the buffer and cap. The outperformance or underperformance is directly related to the downside protection and upside cap.

Expense Ratio: 0.79

Average Trading Volume

IJAN's average trading volume is moderate, and it depends on investor interest in defined outcome strategies and market volatility.

Bid-Ask Spread

The bid-ask spread for IJAN is typically competitive but may widen during periods of low trading volume or high market volatility.

Market Environment Factors

Economic indicators in developed markets (excluding the US & Canada), interest rate policies, and global trade dynamics influence IJAN's performance.

Growth Trajectory

IJAN's growth trajectory depends on investor demand for downside protection and the overall performance of developed equity markets. Changes to strategy and holdings primarily involve adjustments to the FLEX Options contracts.

Competitive Edge

IJAN's competitive edge lies in its defined outcome strategy, providing investors with a known level of downside protection and upside potential. This strategy differentiates it from traditional index ETFs and appeals to risk-averse investors. The use of FLEX Options allows for a customizable risk profile. Furthermore, its defined outcome resets annually, allowing investors to reinvest each year. Overall, IJAN's defined outcome investment strategy provides a certain level of certainty for investors to take advantage of.

Volatility

IJAN's volatility is generally lower than the MSCI EAFE Index due to the downside buffer; however, the upside is capped, affecting overall return potential.

Market Risk

IJAN is subject to market risk associated with the underlying MSCI EAFE Index, as well as risks related to options trading and the potential for the capped upside to limit returns in strong market rallies.

Ideal Investor Profile

The ideal investor for IJAN is risk-averse, seeking defined downside protection while accepting capped upside potential. Investors who want exposure to the developed international market with a built-in downside buffer are best suited.

Market Risk

IJAN is suitable for investors who want a buffered exposure to international equities and are comfortable with defined outcome strategies. Best for long-term investors who are looking to mitigate downside risk.

Innovator MSCI EAFE Power Buffer ETF January (IJAN) offers buffered exposure to the MSCI EAFE Index using FLEX Options, protecting against the first 10% of losses annually. Its competitive advantage lies in defined outcome strategy to mitigate downside risk. Ideal investors are risk-averse and seek stable returns. The ETF is suitable for investors seeking a balance between market participation and downside protection in developed international markets.

Data Sources:

• Innovator Capital Management website
• ETF.com
• Morningstar
• SEC Filings

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Investors should conduct their own due diligence before making any investment decisions. Market share data is estimated and may not be exact.