KFEB
Innovator U.S. Small Cap Power Buffer ETF - February
📎 Investment Objective
The Innovator U.S. Small Cap Power Buffer ETF - February 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 - February
Performance
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Investment Summary
📎 Investment Objective
The Innovator U.S. Small Cap Power Buffer ETF - February 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
The ETF uses a defined outcome strategy, seeking to provide exposure to the Russell 2000 Index with a built-in buffer against the first 15% of losses over a one-year period. It achieves this by purchasing Russell 2000 Index options with a strike price approximately 15% below the prevailing index level at the beginning of the 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 a one-year outcome period
- Resets annually, with a new upside cap and buffer level set at the beginning of each new outcome period
- Expense ratio of 0.00%
⚠️ Primary Risks
- Market risk: The ETF's returns are subject to the performance of the underlying Russell 2000 Index
- Capped upside potential: The ETF's returns are capped at a predetermined level, limiting potential gains
- Outcome period risk: Investors who purchase shares outside of the initial outcome period may experience returns that vary from the stated outcomes
- Liquidity risk: In certain market conditions, it may be difficult to purchase or sell shares at the desired price
👤 Best For
The Innovator U.S. Small Cap Power Buffer ETF - February may be suitable for investors seeking small-cap equity exposure with a built-in buffer against the first 15% of losses over a one-year period. It may be particularly appealing to those with a moderate risk tolerance who are looking to limit downside risk while participating in the potential upside of the small-cap market.