Innovator Power Buffer Step-Up Strategy ETF (PSTP)

Overview

The Innovator Power Buffer Step-Up Strategy ETF seeks to provide investors with returns that match the price return of a specific underlying equity market, up to a predetermined cap, while buffering investors against a defined level of losses over a set period. It focuses on US equities, primarily utilizing FLEX Options.

Reputation and Reliability

Innovator Capital Management is known for its defined outcome ETFs, which offer downside protection and capped upside. They have a solid track record in this niche.

Management Expertise

Innovator's management team specializes in structured investment products and has significant experience in options and derivatives strategies.

Goal

To provide investors with exposure to the price return of an underlying index, up to a cap, while buffering against a specified range of losses.

Investment Approach and Strategy

Strategy: The ETF uses FLEX Options to achieve a defined outcome, protecting against a certain level of downside risk while offering a limited upside potential.

Composition The ETF primarily holds FLEX Options on a specific underlying index, such as the S&P 500, and cash.

Market Share: Data Not Available

Total Net Assets (AUM): Data Not Available

Key Competitors

• Defined Outcome ETFs from other issuers

Competitive Landscape

The competitive landscape consists of other defined outcome ETFs with varying strategies, cap rates, and buffer levels. Innovator ETFs compete based on the specific buffer level, upside cap, underlying index, and expense ratio. Advantages include well-defined outcome strategies and wide product range. Disadvantages include complexity and limited upside potential compared to traditional index investing.

Historical Performance: Data Not Available

Benchmark Comparison: Data Not Available

Expense Ratio: Data Not Available

Average Trading Volume

Average trading volume indicates the ease with which shares can be bought or sold without significantly impacting the ETF's price. Data Not Available

Bid-Ask Spread

The bid-ask spread reflects the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept, indicating trading cost. Data Not Available

Market Environment Factors

Market volatility, interest rates, and investor sentiment towards risk all influence the performance of Power Buffer ETFs. A positive equity market typically helps it to achieve its cap while volatility might affect the pricing of the FLEX options.

Growth Trajectory

Growth depends on the adoption of defined outcome ETFs by investors seeking downside protection with controlled upside. Any shifts in interest rate expectation and equity market performance greatly affect this ETF.

Competitive Edge

Innovator Capital Management's specialization in defined outcome ETFs gives them a competitive edge. The firm's established expertise in structuring and managing option-based strategies allows them to offer a diverse range of buffered and capped ETFs. This provides investors with a spectrum of risk management tools. Their first-mover advantage and focus on defined outcome ETFs give them a strong foothold.

Volatility

The ETF's volatility depends on the underlying index and the FLEX options strategy. It is generally less volatile than the underlying market index due to the buffer but more volatile than money market instruments.

Market Risk

The ETF is subject to market risk, especially related to the underlying equity index. Changes in the options market can also impact the value and outcomes of the strategy.

Ideal Investor Profile

Investors seeking downside protection with limited upside potential, who understand and accept the tradeoff between risk mitigation and capped returns.

Market Risk

Best suited for long-term investors who want to participate in market gains up to a certain level while limiting potential losses. Not suitable for active traders seeking high returns or passive index followers.

The Innovator Power Buffer Step-Up Strategy ETF offers a defined outcome strategy, providing downside protection and capped upside by using FLEX options. It is a suitable investment for risk-averse investors. Its performance depends on the underlying index's trajectory and market volatility. Investors must understand the trade-offs and the underlying options strategy before investing in this ETF.

Data Sources:

• Innovator Capital Management website
• ETF.com
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered financial advice. Past performance is not indicative of future results. Consult with a financial advisor before making any investment decisions.