ZAUG
Innovator Equity Defined Protection ETF - 1 Yr August
📎 Investment Objective
The Innovator Equity Defined Protection ETF - 1 Yr August (ZAUG) seeks to provide investors with exposure to the equity markets while aiming to limit downside risk over a one-year period.
Overview
ETF tracking Innovator Equity Defined Protection ETF - 1 Yr August
Performance
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Investment Summary
📎 Investment Objective
The Innovator Equity Defined Protection ETF - 1 Yr August (ZAUG) seeks to provide investors with exposure to the equity markets while aiming to limit downside risk over a one-year period.
🎯 Investment Strategy
ZAUG uses a defined outcome strategy, where it purchases a one-year FLEX options contract that provides exposure to the S&P 500 Index. The options contract is designed to provide upside participation up to a cap, while limiting downside risk to a defined level.
✨ Key Features
- Defined outcome strategy that aims to limit downside risk over a one-year period
- Exposure to the S&P 500 Index through a one-year FLEX options contract
- Potential for upside participation up to a cap, while limiting downside risk
- Resets annually in August, providing a new one-year outcome period
⚠️ Primary Risks
- Market risk: The ETF's performance is tied to the performance of the S&P 500 Index, and it is subject to the risks associated with equity markets.
- Capped upside potential: The ETF's upside participation is capped, limiting the potential for gains.
- Counterparty risk: The ETF's performance is dependent on the ability of the options counterparty to fulfill its obligations.
- Liquidity risk: The ETF may experience lower trading volume and liquidity compared to more established funds.
👤 Best For
ZAUG may be suitable for investors seeking equity market exposure with defined downside protection, particularly those with a one-year investment horizon. However, the capped upside potential may not be suitable for investors seeking maximum equity market participation.