SFLR Profile
The Innovator Equity Managed Floor ETF is an actively managed exchange-traded fund designed to achieve capital appreciation by investing primarily in large-cap U.S. equities while employing strategies to limit downside risk. The fund aims to capture the performance of the U.S. equity markets, focusing on large-capitalization companies included in the Solactive GBS United States 500 Index. This index comprises 500 of the largest publicly traded companies in the U.S., offering broad exposure to major sectors of the economy.
To enhance its investment strategy, the fund incorporates a combination of equity securities and derivatives, specifically put and call options. These financial instruments are used to manage and mitigate potential losses, providing a form of insurance against significant declines in the equity markets. By using options contracts, the fund seeks to maintain exposure to potential market gains while capping the extent of losses, thereby offering a risk-managed approach to equity investing.
The actively managed nature of the fund allows for dynamic adjustments to its investment strategy in response to market conditions. The fund’s advisor employs both fundamental and technical analysis to select and manage the portfolio, aiming to optimize performance while adhering to the floor protection strategy. This approach seeks to balance capital growth with risk control, making it suitable for investors looking for equity exposure with a safety net against severe market downturns.
As a non-diversified fund, the Innovator Equity Managed Floor ETF concentrates its investments in specific securities and strategies that align with its investment objective. This focused approach enables the fund to implement its unique risk management techniques effectively. Investors interested in this ETF benefit from its combination of broad market exposure and risk mitigation, positioning the fund as a strategic option for those seeking to invest in large-cap U.S. equities with a managed approach to potential losses.
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