Innovator MSCI EAFE Power Buffer ETF - July (IJUL)

Overview

The Innovator MSCI EAFE Power Buffer ETF - July (IJUL) is designed to provide investors with buffered exposure to the MSCI EAFE Index, limiting downside risk over a defined outcome period while capping potential gains. It primarily focuses on developed markets outside of the US and Canada, employing a flexible asset allocation strategy tied to options on the underlying index.

Reputation and Reliability

Innovator Capital Management is known for its defined outcome ETFs, offering innovative solutions for risk management and return enhancement.

Management Expertise

The management team has experience in structured products and options strategies, specializing in creating defined outcome investment vehicles.

Goal

To provide specific downside protection and upside participation in the MSCI EAFE Index over a defined outcome period, from July to July each year.

Investment Approach and Strategy

Strategy: The ETF utilizes a defined outcome strategy, employing options contracts to create a buffer against market declines up to a certain percentage, while also limiting the potential upside.

Composition The ETF primarily holds FLex Options on the MSCI EAFE Index, along with a small allocation to cash or other money market instruments.

Market Share: Data unavailable.

Total Net Assets (AUM): 79514834

Key Competitors

• Innovator U.S. Equity Power Buffer ETF - July (PJUL)
• Innovator Russell 2000 Power Buffer ETF - July (KJUL)
• Simplify US Equity PLUS Downside Convexity ETF (SPCX)

Competitive Landscape

The defined outcome ETF market is becoming increasingly competitive, with various issuers offering similar buffered or capped strategies. IJUL competes on the basis of its specific buffer level, cap rate, and underlying index. Advantages include a clear defined outcome and downside protection, while disadvantages can include limited upside potential compared to unbuffered strategies.

Historical Performance: Historical performance data is available on the issuer's website and financial data providers. This ETF resets every July so each years returns is from July-July.

Benchmark Comparison: The ETF's performance should be compared to the MSCI EAFE Index, considering the capped upside and buffered downside. The ETF seeks to match the Index's return while providing a buffer up to a cap.

Expense Ratio: 0.79

Average Trading Volume

The average daily trading volume is moderate, which may impact trade execution costs for larger transactions.

Bid-Ask Spread

The bid-ask spread can fluctuate based on market conditions and trading volume, and this must be factored when trading the ETF.

Market Environment Factors

Global economic conditions, currency fluctuations, and political events in developed markets outside the U.S. can impact the ETF's performance. The value of the options held can fluctuate due to changes in volatility and interest rates.

Growth Trajectory

The ETF's growth is tied to the demand for defined outcome investment strategies and investor appetite for downside protection in international equity markets. Growth is reliant on investor awareness of the ETF's unique strategy.

Competitive Edge

IJUL's competitive edge lies in its defined outcome strategy, providing investors with a predictable range of potential returns. The defined outcome period offers a specific timeframe for risk management. Investors gain clarity on the potential buffer and cap, which can be beneficial for financial planning. The ETF also aims to remove some volatility compared to direct investment in the MSCI EAFE index.

Volatility

The ETF's volatility should be lower than the underlying MSCI EAFE Index due to the buffered downside, but it is still subject to market fluctuations.

Market Risk

The ETF is subject to market risk associated with the MSCI EAFE Index, including economic downturns, geopolitical events, and currency risks.

Ideal Investor Profile

The ideal investor is risk-averse, seeking downside protection with a willingness to forgo some potential upside. They are looking for defined outcome strategies and have a clear understanding of options-based investments.

Market Risk

IJUL is best suited for long-term investors seeking to manage risk and achieve specific financial goals over a defined period.

The Innovator MSCI EAFE Power Buffer ETF - July (IJUL) provides a defined outcome investment strategy, buffering against potential losses in the MSCI EAFE Index while capping upside gains. This makes it suitable for risk-averse investors seeking international equity exposure with downside protection. The ETF utilizes options to achieve its objectives, which needs to be understood before investing. The capped upside needs to be considered compared to an unbuffered investment in MSCI EAFE index.

Data Sources:

• Innovator Capital Management Website
• ETF.com
• Morningstar

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investors should conduct their own due diligence before investing.