 The
Innovator Lunt Low Vol/High Beta Tactical ETF (BUFF) is an
exchange-traded fund that seeks to provide exposure to U.S. large-cap
equities with both low volatility and high beta characteristics. The
fund is managed by Innovator Capital Management and was launched in
February 2021.
BUFF aims to provide investors with a
low-volatility core holding while also potentially capturing some of
the upside of the market during bull markets. The fund uses a
rules-based methodology to select stocks from the S&P 500 Index based
on their low volatility and high beta characteristics. Low volatility
stocks are selected for their ability to provide downside protection,
while high beta stocks are chosen for their potential to outperform
the market during upswings.
The fund also employs a tactical
overlay that allows for adjustments to the portfolio based on market
conditions. The overlay uses a set of proprietary indicators to
determine whether market conditions are favorable for risk-on or
risk-off investments.
As of March 2023, the top holdings of
BUFF include stocks such as Apple Inc., Microsoft Corporation,
Amazon.com Inc., Alphabet Inc., and Facebook Inc. The fund has an
expense ratio of 0.49%, which is slightly higher than the average
expense ratio for ETFs.
Overall, BUFF may be suitable for
investors who are looking for exposure to U.S. large-cap equities with
both low volatility and high beta characteristics, while also
potentially benefiting from a tactical overlay that adjusts the
portfolio based on market conditions. However, investors should be
aware of the higher expense ratio compared to other ETFs.
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