BAUG
Innovator U.S. Equity Buffer ETF - August
📎 Investment Objective
The Innovator U.S. Equity Buffer ETF - August seeks to provide investors with returns that match those of the S&P 500 Index, up to a predetermined cap, while providing a buffer against the first 9% of losses over the course of an outcome period.
Overview
ETF tracking Innovator U.S. Equity Buffer ETF - August
Performance
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Investment Summary
📎 Investment Objective
The Innovator U.S. Equity Buffer ETF - August seeks to provide investors with returns that match those of the S&P 500 Index, up to a predetermined cap, while providing a buffer against the first 9% of losses over the course of an outcome period.
🎯 Investment Strategy
The ETF uses a defined outcome strategy, investing in a portfolio of FLexible EXchange (FLEX) options that are designed to provide returns that match the S&P 500 Index, up to a cap, while buffering against the first 9% of losses. The outcome period is from August 1 to July 31 of the following year.
✨ Key Features
- Seeks to match S&P 500 returns up to a predetermined cap
- Provides a 9% buffer against losses over the outcome period
- Resets annually on August 1 with a new outcome period and parameters
- Expense ratio of 0.00%
⚠️ Primary Risks
- Market risk: The ETF's returns are tied to the performance of the S&P 500 Index
- Cap risk: Gains are limited to the predetermined upside cap
- Outcome period risk: Benefits only apply during the specified 12-month outcome period
- Liquidity risk: Shares may trade at a premium or discount to NAV
👤 Best For
This ETF may be suitable for investors seeking S&P 500 exposure with a level of downside protection, and who are comfortable with the limitations of the defined outcome strategy. It may be most appropriate for investors with a medium-term investment horizon who can hold the shares for the full outcome period.