IOCT Profile
The Innovator International Developed Power Buffer ETF - October is designed to offer investors exposure to international developed markets with a unique focus on risk management through the use of FLEX Options. The fund commits to investing at least 80% of its net assets in FLEX Options that reference the iShares MSCI EAFE ETF, which tracks the performance of developed market equities outside of the U.S. and Canada. This strategic allocation aims to provide investors with a tailored exposure to international equities while implementing a buffer strategy to mitigate downside risk.
FLEX Options are exchange-traded options contracts that offer customizable terms, allowing for flexible strike prices, expiration dates, and other contractual elements. While these options are guaranteed for settlement by the Options Clearing Corporation (OCC), they are subject to counterparty risk associated with the OCC and may exhibit lower liquidity compared to traditional exchange-traded options. The fund's use of FLEX Options is designed to create a buffer against potential losses, providing a degree of protection while aiming to capture returns from the performance of international developed markets.
The iShares MSCI EAFE ETF, referenced by the FLEX Options, includes a broad range of companies from developed markets such as Europe, Australasia, and the Far East. This ETF provides exposure to large- and mid-cap stocks in these regions, encompassing various sectors and industries. By investing in FLEX Options linked to this ETF, the Innovator International Developed Power Buffer ETF seeks to offer investors an innovative approach to international equity exposure with built-in risk management features.
Managed by Innovator Capital Management, the ETF benefits from the firms expertise in developing structured investment solutions. Innovators focus on creating products with specific risk and return profiles is reflected in the Power Buffer strategy, which aims to balance the potential for capital appreciation with risk reduction. For investors seeking a strategic approach to international equity markets with enhanced risk management, this ETF provides a distinctive investment option aligned with their financial objectives and risk tolerance.
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