BNOV Profile
The
Innovator S&P 500 Buffer ETF Nov (BNOV) is an exchange-traded fund
that aims to provide investors with exposure to the S&P 500 Index
while protecting against losses. The ETF is part of a series of
Innovator ETFs that utilize an options strategy to provide downside
protection.
The ETF works by investing in a portfolio of S&P
500 stocks, while simultaneously purchasing a series of put options
that will provide downside protection in the event of a market
downturn. The options have a set strike price, and if the S&P 500
falls below that price, the put options will increase in value and
offset the losses in the stock portfolio.
The BNOV ETF has an
expense ratio of 0.79% and was launched in November 2018. As of March
23, 2023, the ETF has net assets of approximately $120 million and a
current yield of 1.31%. The ETF has returned 9.62% year-to-date and
has an average annual return of 6.09% since inception.
Investors interested in the BNOV ETF should be aware that the options
strategy used by the fund can result in lower returns in a rising
market, as the cost of the put options reduces the amount of capital
available for stock investments. Additionally, the fund's downside
protection is not foolproof, and it is still subject to market risks
and
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