ZMAR
Innovator Equity Defined Protection ETF - 1 Yr March
📎 Investment Objective
The Innovator Equity Defined Protection ETF seeks to provide investors with exposure to the equity market while aiming to limit downside risk over a one-year period.
Overview
ETF tracking Innovator Equity Defined Protection ETF - 1 Yr March
Performance
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Investment Summary
📎 Investment Objective
The Innovator Equity Defined Protection ETF seeks to provide investors with exposure to the equity market while aiming to limit downside risk over a one-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 equity 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 against the first 10-15% of losses in the underlying equity index
- Capped upside potential to limit the fund's participation in equity market gains
- One-year investment period, after which the fund's parameters are reset
- Expense ratio of 0.00%
⚠️ Primary Risks
- Market risk: The fund's performance is tied to the underlying equity index, and it may experience losses if the index declines
- Capped upside potential: The fund's returns are capped, limiting its ability to fully participate in equity market gains
- Liquidity risk: The options-based strategy may result in reduced liquidity compared to traditional equity funds
- Reset risk: The fund's parameters are reset annually, which may result in changes to the downside buffer and upside cap
👤 Best For
This ETF may be suitable for investors seeking equity market exposure with a defined level of downside protection, and who are comfortable with the trade-off between the fund's capped upside potential and its downside buffer. It may be particularly appealing to investors with a one-year investment horizon who are looking to limit their downside risk.