In An Uncertain Stock Market Environment, A 'Buffer' ETF Offers 100% Downside Protection, With Capped Gains
Portfolio Pulse from Melanie Schaffer
Innovator Capital Management has launched a new 'buffer' ETF, the Innovator Equity Defined Protection ETF (NYSE:TJUL), which offers 100% downside protection by limiting losses. The fund tracks S&P 500 returns over a two-year outcome period with an upside cap of 16.62%. The ETF uses options to mirror the performance of an index, rather than holding tangible stocks or bonds. Additionally, traders can use MIAX’s SPIKES Volatility products, traded on SPIKES Volatility Index (XMIO: SPIKE), to trade the volatility in the stock market.
July 19, 2023 | 3:04 pm
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POSITIVE IMPACT
MIAX’s SPIKES Volatility products, traded on SPIKES Volatility Index (SPIKE), allow traders to trade the volatility in the stock market, offering another form of protection against market downturns.
The mention of SPIKES Volatility products could increase trader interest, potentially leading to increased trading volume and a positive impact on the price in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
The new Innovator Equity Defined Protection ETF (TJUL) offers 100% downside protection, tracking S&P 500 returns with an upside cap of 16.62% over a two-year period. This could attract investors seeking to mitigate risk in an uncertain market.
The launch of the new ETF could attract investors seeking downside protection in an uncertain market, potentially driving up demand and positively impacting the ETF's price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100