 The
Innovator U.S. Equity Buffer ETF - June (BJUN) is an exchange-traded
fund that seeks to provide investors with exposure to U.S. large-cap
stocks while offering downside protection against market volatility.
The fund is managed by Innovator Capital Management, LLC, a registered
investment advisor that specializes in defined outcome ETFs.
The BJUN ETF is designed to track the price and yield performance,
before fees and expenses, of the S&P 500 Buffer Protect Index - June.
This index aims to provide investors with a buffer against the first
9% of losses in the S&P 500 Index over the course of a one-year
period, while also allowing investors to participate in the upside
potential of the index up to a cap. As of September 2021, the cap for
BJUN is 15.56%.
The expense ratio for the BJUN ETF is 0.79%,
which is relatively high compared to other ETFs but is in line with
other defined outcome ETFs. Investors should be aware that while the
fund's downside protection feature can provide some level of security
against market volatility, it also means that the fund's returns may
be lower than the S&P 500 Index in a strong market environment.
Overall, the Innovator U.S. Equity Buffer ETF - June may be a
suitable investment for investors who seek exposure to U.S. large-cap
stocks while also seeking downside protection against market
volatility. However, investors should carefully consider their
investment goals and risk tolerance before investing in the fund, as
well as the potential trade-offs between downside protection and
potential returns.
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