Innovator MSCI EAFE Power Buffer ETF - July (IJUL)

Overview

The Innovator MSCI EAFE Power Buffer ETF - July (IJUL) is designed to provide specific buffered exposure to the MSCI EAFE Index, protecting investors against the first 10% of losses while limiting upside participation. It focuses on developed market equities excluding the US and Canada, using a defined outcome strategy.

Reputation and Reliability

Innovator Capital Management is known for its defined outcome ETFs, offering a range of buffered and accelerated ETFs with varying risk/return profiles.

Management Expertise

Innovator's management team has experience in structuring and managing defined outcome investment products.

Goal

To provide specific downside protection and capped upside participation in the MSCI EAFE Index.

Investment Approach and Strategy

Strategy: This ETF uses a defined outcome strategy employing FLEX options to create a buffer against the first 10% of losses in the MSCI EAFE Index over a one-year outcome period. The upside is capped.

Composition The ETF holds FLEX options contracts on the MSCI EAFE Index.

Market Share: Data not available to compute precise market share.

Total Net Assets (AUM): 64279305.36

Key Competitors

• FTCS
• FLSW
• FJAN

Competitive Landscape

The competitive landscape consists of other defined outcome ETFs and broad EAFE index trackers. IJUL differentiates itself with its specific buffer level (10%) and July outcome period. Competitors offer different buffer levels, outcome periods and index exposures.

Historical Performance: Historical performance data is tied to the outcome period which resets annually, making long-term trend analysis less relevant without considering specific periods. Data to create numerical format for this is not fully available.

Benchmark Comparison: The ETF's performance is compared to the MSCI EAFE Index. However, due to the defined outcome strategy, it will likely underperform the index during periods of strong gains and outperform during periods of moderate losses.

Expense Ratio: 0.79

Average Trading Volume

IJUL exhibits moderate liquidity, sufficient for most retail investors but potentially limiting for large institutional investors.

Bid-Ask Spread

The bid-ask spread is typically reasonable, but it can widen during periods of market volatility or lower trading volume.

Market Environment Factors

Economic conditions in developed countries (excluding the US and Canada), interest rate policies, and geopolitical events influence the performance of the MSCI EAFE Index and, consequently, IJUL.

Growth Trajectory

The ETF's growth is dependent on investor demand for defined outcome investment products and the performance of the MSCI EAFE Index.

Competitive Edge

IJUL's primary advantage is its defined outcome strategy, providing investors with a known level of downside protection and upside potential. This appeals to risk-averse investors seeking exposure to international developed markets while mitigating downside risk. The annual reset of the buffer allows investors to reinvest and maintain a consistent risk profile. However, this strategy also limits upside participation, which can be a disadvantage during bull markets.

Volatility

IJUL is expected to have lower volatility than the MSCI EAFE Index due to its downside buffer, but the capped upside limits full participation in market rallies.

Market Risk

The ETF is subject to market risk associated with equities in developed countries (excluding the US and Canada). The value of the underlying FLEX options contracts is subject to market fluctuations.

Ideal Investor Profile

Risk-averse investors, retirees, or those nearing retirement who want exposure to international developed markets with a known level of downside protection are the ideal investors.

Market Risk

IJUL is more suitable for long-term investors who prioritize capital preservation and are willing to forgo some upside potential in exchange for downside protection.

The Innovator MSCI EAFE Power Buffer ETF - July (IJUL) offers a defined outcome strategy providing a buffer against the first 10% of losses in the MSCI EAFE Index. While it limits upside participation, it appeals to risk-averse investors seeking international equity exposure with downside protection. Its performance is influenced by the economic and political environment in developed countries excluding US and Canada. Investors should consider the ETF's defined outcome period and expense ratio when making investment decisions.

Data Sources:

• Innovator Capital Management Website
• ETF.com
• Morningstar

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor.