KJAN Profile
The Innovator U.S. Small Cap Power Buffer ETF - January is designed to provide investors with exposure to small-cap equities while offering a degree of protection against losses. The fund primarily allocates at least 80% of its net assets to FLEX Options, which are customizable exchange-traded options contracts that reference the iShares Russell 2000 ETF. These FLEX Options enable the fund to tailor its investment strategy to specific market conditions, providing a buffer against downside risk while maintaining potential for growth.
The iShares Russell 2000 ETF, which serves as the reference for the FLEX Options, aims to track the performance of the Russell 2000 Index. This index is a float-adjusted, capitalization-weighted benchmark that includes approximately 2,000 of the smallest publicly traded companies within the Russell 3000 Index. As a result, the fund provides exposure to a broad array of small-cap stocks, which can offer higher growth potential compared to larger-cap stocks but may also come with increased volatility.
The fund's use of FLEX Options allows it to construct a strategy that buffers against potential losses while participating in the upside potential of small-cap equities. By investing in these options, the fund can limit losses to a specified level, thus providing a protective cushion for investors. This strategy is designed to mitigate the impact of market downturns while still capturing the performance of small-cap stocks through the underlying ETF.
As a non-diversified fund, the Innovator U.S. Small Cap Power Buffer ETF - January focuses its investments on a specific set of securities and options contracts linked to the Russell 2000 Index. This concentrated approach reflects the fund's strategy to deliver targeted exposure to small-cap equities with a built-in risk management feature, aligning with investors' needs for both growth and protection in a dynamic market environment.
|
