ZNOV
Innovator Equity Defined Protection ETF - 1 Yr November
📎 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 November
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, investing in a portfolio of options contracts to provide upside participation in the equity market up to a cap, while seeking to limit losses to a defined downside buffer. The fund resets its parameters annually in November.
✨ Key Features
- Defined downside protection, aiming to limit losses to a predetermined level over a one-year period
- Potential for upside participation in the equity market, subject to a cap
- Annual reset of the fund's parameters in November
- Low expense ratio of 0.00%
⚠️ Primary Risks
- Market risk, as the fund's performance is tied to the equity market
- Capped upside potential, as gains are limited by the fund's cap
- Counterparty risk, as the fund's performance relies on the ability of option counterparties to fulfill their obligations
- Liquidity risk, as the fund's options-based strategy may result in lower liquidity compared to traditional equity funds
👤 Best For
This ETF may be suitable for investors seeking equity market exposure with a defined level of downside protection, and who have a one-year investment horizon. It may be particularly appealing to those with a moderate risk tolerance who want to limit potential losses while maintaining some upside potential.