KOCT
Innovator U.S. Small Cap Power Buffer ETF - October
📎 Investment Objective
The Innovator U.S. Small Cap Power Buffer ETF - October (KOCT) seeks to provide investors with returns that match the performance of the Russell 2000 Index, up to a predetermined cap, while providing a buffer against the first 15% of losses over the course of an outcome period.
Overview
ETF tracking Innovator U.S. Small Cap Power Buffer ETF - October
Performance
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Investment Summary
📎 Investment Objective
The Innovator U.S. Small Cap Power Buffer ETF - October (KOCT) seeks to provide investors with returns that match the performance of the Russell 2000 Index, up to a predetermined cap, while providing a buffer against the first 15% of losses over the course of an outcome period.
🎯 Investment Strategy
KOCT uses an options-based strategy to provide exposure to the Russell 2000 Index, with the goal of limiting downside risk. The fund holds a portfolio of FLexible EXchange (FLEX) Options that are designed to provide the desired outcome over the course of a one-year period.
✨ Key Features
- Seeks to match the Russell 2000 Index performance up to a cap, while providing a 15% buffer against losses
- Resets annually in October to provide a new one-year outcome period
- Utilizes FLEX Options to implement its defined outcome strategy
- Expense ratio of 0.00%
⚠️ Primary Risks
- Market risk: The fund's returns are subject to the performance of the underlying Russell 2000 Index
- Capped upside potential: The fund's returns are capped at a predetermined level, limiting potential gains
- Outcome period risk: The defined outcome parameters only apply at the end of the one-year outcome period
- Options-based strategy risk: The use of options exposes the fund to the risks associated with the options market
👤 Best For
KOCT may be suitable for investors seeking exposure to the small-cap equity market with a defined level of downside protection. The fund's annual reset and defined outcome parameters make it most appropriate for investors who can hold the fund for the full one-year outcome period.