 The
Innovator S&P 500 Ultra Buffer ETF - March (UMAR) is an
exchange-traded fund that seeks to provide investors with upside
participation in the S&P 500 Index while limiting downside losses. The
ETF uses a defined outcome investment strategy that employs options
contracts to establish downside buffers of 9% and 30% for the S&P 500
Index over a one-year period.
UMAR seeks to provide investors
with exposure to the S&P 500 Index with a downside buffer of 9% from
the index's price at the beginning of the outcome period (in this
case, March 1st). This means that if the S&P 500 Index declines by up
to 9% during the outcome period, the ETF aims to absorb the first 9%
of losses, while any losses beyond 9% would be borne by the investor.
At the same time, UMAR also sets an upside cap of 16.87% for the
outcome period, meaning that investors can participate in gains up to
that level, but no more. This is achieved through the sale of call
options on the S&P 500 Index.
The UMAR ETF is designed for
investors seeking downside protection against market volatility while
still having the potential for some upside participation in the S&P
500 Index.
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