(BUFS) BUFS - Ratings and Ratios

The Innovator S&P Small-Cap Buffer ETF - September (BUFS) employs a laddered portfolio strategy, investing in a series of underlying ETFs with staggered target outcome periods. This approach allows the fund to maintain a consistent level of exposure to the iShares Russell 2000 ETF (IWM) through FLexible EXchange Options (FLEX Options), which are customized, exchange-traded options backed by the Options Clearing Corporation. As a non-diversified fund, BUFS concentrates its investments, amplifying potential gains and losses.

BUFS is categorized as a Defined Outcome ETF, indicating its investment objective is to achieve a predetermined outcome, in this case, providing a buffer against potential losses in the underlying IWM ETF. The funds structure suggests it is designed for investors seeking to manage risk while still participating in potential market gains.

Analyzing the available data, we observe that BUFS has a relatively stable price action, with its 20-day and 50-day Simple Moving Averages (SMA) indicating a slight uptrend. The Average True Range (ATR) of 0.31, representing 1.52% of the last price, suggests moderate volatility. Given the current price of $20.68, the 52-week range of $18.82 to $22.15, and the SMA200 at $20.98, we can infer that the ETF is currently trading near its longer-term mean.

Considering both technical and fundamental data, a forecast for BUFS can be constructed. With the AUM at $87.51M, the fund has a reasonable size to maintain liquidity. The technical indicators suggest a potential for continued stability or slight growth, given the SMA20 and SMA50 are trending upwards. However, the proximity to the SMA200 may indicate a potential resistance level. If the IWM continues to perform well and the overall market remains stable, BUFS could potentially move towards its 52-week high. Conversely, a downturn could see it buffered by its defined outcome strategy. A likely forecast is that BUFS will continue to trade within a narrow range, potentially testing the $21.00 level in the near term, assuming the underlying IWM ETF remains stable and the overall market conditions do not drastically change.