ZOCT
Innovator Equity Defined Protection ETF - 1 Yr October
📎 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 one-year period.
Overview
ETF tracking Innovator Equity Defined Protection ETF - 1 Yr October
Performance
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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 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 for a one-year period
- Potential for participation in equity market upside, subject to a cap
- Aims to provide a smoother investment experience compared to direct equity exposure
- Resets annually, allowing investors to potentially benefit from a new one-year outcome period
⚠️ Primary Risks
- Market risk: The ETF's performance is tied to the underlying equity index, and it will be subject to the same market fluctuations
- 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 creditworthiness of the counterparties involved
- Liquidity risk: The ETF may have limited trading volume, which could affect an investor's ability to buy or sell shares
👤 Best For
This ETF may be suitable for investors who are seeking equity market exposure with a level of downside protection, and who have a one-year investment horizon. It may be particularly appealing to those who are more risk-averse or who want to limit their downside risk during periods of market volatility.