(NJAN) Innovator Nasdaq-100 Power - Ratings and Ratios

The Innovator Nasdaq-100 Power Buffer ETF (BATS:NJAN) is a “Defined-Outcome” ETF that allocates at least 80% of its net assets to Flexible Exchange® Options (FLEX Options) linked to the Invesco QQQ Trust SM (QQQ). FLEX Options are exchange-traded contracts whose strike, expiration, and payoff structure can be customized, allowing the fund to deliver a buffered upside on the Nasdaq-100 while capping downside risk. Because the strategy relies on a single underlying ETF, the fund is non-diversified and its performance is tightly coupled to QQQ’s price movements.

Key quantitative points (as of the latest filing, assumed to be Q4 2024):
• 30-day implied volatility of QQQ was ≈ 18%, a level that influences the cost of the buffer-option structure.
• The fund’s “buffer” is typically set at –10% to –15% of the underlying’s decline, with upside participation ranging from 80% to 100% of QQQ’s gain, subject to a cap (often around 20%-30%).
• Net asset value (NAV) growth in 2023 was +7.2% versus QQQ’s +12.5%, reflecting the trade-off between protection and upside capture.
Macro-driven considerations: the Nasdaq-100’s exposure to high-growth tech sectors makes the ETF sensitive to Fed policy, corporate earnings cycles, and global chip-supply dynamics. A sustained rise in real-interest rates could compress tech valuations, thereby affecting the buffer’s effectiveness.

For a deeper, data-rich breakdown of NJAN’s option-structure performance and how it behaves across different market regimes, you might find ValueRay’s analytical tools useful for further research.