BSTP Profile
The
Innovator Buffer Step-Up Strategy ETF (BSTP) is an exchange-traded
fund that seeks to provide investors with exposure to the S&P 500
while limiting downside risk. The fund uses a buffer strategy that
allows investors to participate in the upside of the S&P 500 up to a
certain cap, while also limiting the potential losses from market
downturns.
BSTP invests in a combination of U.S. Treasury bills
and a portfolio of S&P 500 Index options contracts. The options
contracts are used to implement the buffer strategy, which seeks to
protect the fund's assets from losses of up to 15% in the S&P 500 over
a one-year period. The buffer level is reset annually, and the fund
seeks to provide investors with upside participation in the S&P 500 up
to a certain cap.
The ETF is managed by Innovator Capital
Management, which specializes in defined outcome ETFs. The fund has an
expense ratio of 0.79%, and as of September 2021, its assets under
management were approximately $480 million.
It is important to
note that while the buffer strategy can limit the potential losses
from market downturns, it does not guarantee that losses will be
completely avoided. Additionally, the buffer strategy may limit the
fund's participation in strong market rallies. As with any investment,
investors should carefully consider their investment objectives, risk
tolerance, and other factors before investing in BSTP or any other
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