KOCT Profile
The Innovator U.S. Small Cap Power Buffer ETF - October is a strategically designed exchange-traded fund (ETF) that aims to offer investors a combination of capital protection and potential upside within the small-cap equity space. The funds core investment strategy involves allocating at least 80% of its net assets to FLEX Options, specifically those referencing the iShares Russell 2000 ETF. FLEX Options are unique in their flexibility, allowing for customizable contract terms that can be tailored to meet specific investment objectives.
FLEX Options are exchange-traded contracts that provide investors with the ability to structure options with bespoke features such as varied strike prices, expiration dates, and other terms. These options are backed by the Options Clearing Corporation, ensuring a level of settlement guarantee that enhances their reliability and security. The fund utilizes these options to create a buffer against losses while providing exposure to the performance of small-cap equities, as tracked by the Russell 2000 Index.
The iShares Russell 2000 ETF serves as the underlying reference asset for the funds FLEX Options. This index includes a broad range of small-cap companies across various sectors, reflecting the performance of the smaller end of the U.S. equity market. By focusing on this segment, the fund aims to capture potential growth opportunities while mitigating downside risk through its buffer strategy.
Investors in the Innovator U.S. Small Cap Power Buffer ETF - October benefit from a well-defined investment approach that combines the growth potential of small-cap stocks with protective features provided by FLEX Options. This strategy is designed to offer a balanced risk-return profile, making it suitable for those seeking to diversify their portfolios with a focus on small-cap equities while managing exposure to market volatility.
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