ZSEP Stock Discussion

Innovator U.S. Small Cap Power Buffer ETF - September Innovator Equity Defined Protection ETF - 1 Yr September Description

ZSEP invests all its assets in FLEX options. The option positions are structured in a way that aims to provide long exposure to US large-cap stocks, up to a cap, while fully hedging downside risk over one year. The upside cap and hedge are reset annually, at the beginning of September. Shareholders should note that they will not receive dividends since the objective focuses on potential growth. The specific defined outcome pursued may only be possible if an investor would hold the shares for the entire outcome period. However, there is no guarantee that the defined outcome strategy pursued will be realized by investors. When factoring risks, potential rewards, and the all-in costs for such a strategy, ZSEP is considered an alternative to more expensive fixed indexed annuities, market-linked CDs, holding near-term Treasury, or cash.

Keywords: Dividend Annuities Capital Management