ZDEK
Innovator Equity Defined Protection ETF - 1 Yr December
📎 Investment Objective
The Innovator Equity Defined Protection ETF seeks to provide investors with exposure to the equity markets while aiming to limit downside risk over a 1-year period.
Overview
ETF tracking Innovator Equity Defined Protection ETF - 1 Yr December
Performance
Price Chart
Investment Summary
📎 Investment Objective
The Innovator Equity Defined Protection ETF seeks to provide investors with exposure to the equity markets while aiming to limit downside risk over a 1-year period.
🎯 Investment Strategy
The ETF uses a defined outcome strategy that provides a buffer against the first 10-15% of losses in the underlying index, while also capping the upside potential at a predetermined level. This is achieved through the use of options-based investments.
✨ Key Features
- Defined downside protection of 10-15% over a 1-year period
- Upside participation capped at a predetermined level
- Resets annually in December to provide ongoing defined outcome exposure
- Expense ratio of 0.00%
⚠️ Primary Risks
- Market risk: The ETF's performance is tied to the underlying equity market, which can be volatile
- Capped upside potential: Investors forgo some of the potential upside in exchange for the downside protection
- Counterparty risk: The ETF's options-based strategy exposes it to the risk of the counterparty being unable to fulfill their obligations
- Liquidity risk: The ETF may have limited trading volume, which could impact the ability to buy or sell shares at desired prices
👤 Best For
This ETF may be suitable for investors seeking equity market exposure with defined downside protection, who are willing to forgo some upside potential in exchange for risk management. It may be particularly appealing to those with a 1-year investment horizon who want to limit their downside risk.