PSTP Profile
The Innovator Power Buffer Step-Up Strategy ETF is an actively managed exchange-traded fund (ETF) designed to offer investors risk-managed exposure to the SPDR S&P 500 ETF Trust (the "Underlying ETF"). The fund's primary objective is to provide investment returns that are aligned with the performance of the Underlying ETF, while incorporating a buffer against potential losses. This is achieved by investing the majority of its assets in a portfolio of exchange-traded options contracts on the Underlying ETF.
The ETF employs a strategic approach using Flexible Exchange (FLEX) Options, which are customizable options contracts allowing the fund to tailor the investment strategy to specific expiration dates and strike prices. The Options Portfolio includes FLEX Options with one-year expiration periods, aimed at providing a balance between growth potential and risk management. The fund's structure is designed to mitigate downside risk while capturing a portion of the Underlying ETFs performance.
The fund's active management approach involves regularly adjusting the portfolio of options to adapt to changing market conditions and optimize returns. By focusing on options with structured payoffs, the fund seeks to enhance investor returns while buffering against significant declines in the S&P 500 Index. This approach enables the fund to offer a level of downside protection coupled with upside participation.
As a non-diversified fund, it concentrates its investments in a limited number of options contracts linked to the Underlying ETF. This focus allows for a targeted strategy aimed at providing risk-managed exposure, but it also means that the funds performance is closely tied to the movements of the S&P 500 Index and the effectiveness of its options strategy.
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