KDEC
Innovator U.S. Small Cap Power Buffer ETF - December
📎 Investment Objective
The Innovator U.S. Small Cap Power Buffer ETF - December (KDEC) seeks to provide investors with returns that match the price return of the Russell 2000 Index, up to a predetermined upside cap, while providing a buffer against the first 15% of losses over the course of a one-year period.
Overview
ETF tracking Innovator U.S. Small Cap Power Buffer ETF - December
Performance
Price Chart
Investment Summary
📎 Investment Objective
The Innovator U.S. Small Cap Power Buffer ETF - December (KDEC) seeks to provide investors with returns that match the price return of the Russell 2000 Index, up to a predetermined upside cap, while providing a buffer against the first 15% of losses over the course of a one-year period.
🎯 Investment Strategy
KDEC is an actively managed ETF that uses a defined outcome strategy, seeking to provide exposure to the U.S. small-cap equity market with built-in downside protection. The fund invests in a portfolio of FLexible EXchange Options (FLEX Options) on the Russell 2000 Index, aiming to match the upside performance of the index up to a predetermined cap, while limiting losses to 15% over the one-year outcome period.
✨ Key Features
- Seeks to match the price return of the Russell 2000 Index up to a predetermined upside cap
- Provides a 15% buffer against losses over the one-year outcome period
- Resets the upside cap and downside buffer annually on the fund's inception date
- Actively managed fund that utilizes FLEX Options to achieve its defined outcome strategy
⚠️ Primary Risks
- Market risk: The fund's value will fluctuate with the performance of the underlying index
- Capped upside potential: The fund's returns are subject to a predetermined upside cap, limiting potential gains
- Counterparty risk: The fund is exposed to the creditworthiness of the options counterparties
- Liquidity risk: The fund's FLEX Options may have limited liquidity, which could impact the fund's ability to meet redemption requests
👤 Best For
KDEC may be suitable for investors seeking U.S. small-cap equity exposure with built-in downside protection, who have a one-year investment horizon and are comfortable with the fund's capped upside potential.