NJUL Profile
The Innovator Nasdaq-100 Power Buffer ETF - July is an exchange-traded fund (ETF) designed to offer investors exposure to the Nasdaq-100 Index with a built-in buffer against losses. The fund primarily invests at least 80% of its net assets in FLEX Options that reference the Invesco QQQ TrustSM, Series 1 (the "Underlying ETF"). FLEX Options are customizable exchange-traded options contracts that allow for tailored investment strategies, providing a degree of flexibility not available with standard options contracts.
FLEX Options, utilized by this fund, are unique in their design, allowing for customizable terms such as strike price, expiration date, and other contract specifications. These options are guaranteed for settlement by the Options Clearing Corporation (OCC), though they are subject to counterparty risk associated with the OCC. This means that, while the OCC provides a safety net for contract settlement, there remains a degree of risk and potentially lower liquidity compared to more traditional exchange-traded options.
The funds strategy focuses on providing investors with downside protection while maintaining upside potential through its exposure to the Nasdaq-100 Index. By investing in FLEX Options tied to the Invesco QQQ TrustSM, Series 1, the ETF aims to create a structured investment vehicle that buffers against potential losses, thus offering a safety cushion in volatile market conditions. This approach is particularly appealing to investors seeking to balance risk with growth opportunities in technology and innovation-driven sectors represented by the Nasdaq-100 Index.
As a non-diversified fund, the Innovator Nasdaq-100 Power Buffer ETF - July concentrates its investments in a specific type of financial instrument, which may lead to higher volatility and risks associated with the options market. The fund is designed for investors looking for a strategic investment that combines downside protection with the potential for capital appreciation, capitalizing on the performance of the Nasdaq-100 Index while managing exposure to broader market fluctuations.
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