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In this article, we explore the basics of buffer ETFs and share our thoughts on why we think these ETFs could be a powerful tool for managing risk. By selecting a buffer ETF with a predefined payoff profile that best matches one's preferences, one can achieve the equivalent of a customized option strategy to position for a pullback. The ideal scenario for using buffer ETFs would be when the market has performed exceptionally well and is at risk of a potential pullback.
Beacon Pointe Advisors LLC trimmed its holdings in shares of Innovator U.S. Equity Buffer ETF – August (BATS:BAUG – Free Report) by 34.0% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 46,463 shares of the company’s stock after selling 23,940 shares during the period. Beacon Pointe Advisors LLC owned about 1.19% of Innovator U.S. Equity Buffer ETF – August worth $1,672,000 as of its most recent SEC filing. Several other institutional investors have also recently modified their holdings of the stock. Stratos Wealth Advisors LLC acquired a new stake in shares of Innovator U.S. Equity Buffer ETF – August during the 4th quarter worth about $218,000. Share Andrew L. purchased a new position in shares of Innovator U.S. Equity Buffer ETF – August during the 3rd quarter worth $257,000. J.W. Cole Advisors Inc. purchased a new stake in shares of Innovator U.S. Equity Buffer ETF – August in the fourth quarter valued at $332,000. Strategic Blueprint LLC lifted its position in Innovator U.S. Equity Buffer ETF – August by 25.3% during the fourth quarter. Strategic Blueprint LLC now owns 10,448 shares of the company’s stock worth $376,000 after buying an additional 2,107 shares during the period. Finally, Principal Securities Inc. acquired a new stake in Innovator U.S. Equity Buffer ETF – August in the 4th quarter worth about $409,000. Innovator U.S. Equity Buffer ETF – August Stock Performance BATS BAUG opened at $39.47 on Monday. The company’s 50 day moving average is $38.43 and its 200-day moving average is $36.82. The firm has a market cap of $164.98 million, a P/E ratio of 24.58 and a beta of 0.77. About Innovator U.S. Equity Buffer ETF – August (Free Report) The Innovator U.S. Equity Buffer ETF – August (BAUG) is an exchange-traded fund that is based on the S&P 500 index. The fund aims for specific buffered losses and capped gains on the S&P 500 over a specific holdings period. The actively-managed fund holds options and collateral. BAUG was launched on Aug 1, 2019 and is managed by Innovator.
The Innovator U.S. Equity Buffer ETF is an exchange-traded fund. The ETF seeks to track the return of the S&P 500 up to a predetermined cap while buffering investors against the first 9% of losses over the outcome period.
Once upon a time, dividends played a starring role in equity markets—until 14 years of easy money whetted investors' appetite for risk and created a massive tailwind for unprofitable, long-duration growth stocks. Valuations appear to be attractive: Stocks yielding north of 2.5% are trading near their largest discount to the equity market in recent memory.
The S&P 500 Index has rebounded sharply off its previous low in October, closing up 14% on Feb. 17 since October's trough. The market could continue to rally, of course.
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Performance in the high yield market hasn't been quite as strong as the S&P 500. While total return levels in the high yield market are important to track, spreads in high yield debt relative to treasuries provide a more useful barometer.
The improving macro backdrop, a strong risk rally and rising volatility leave us moderately pro-risk over coming months, with a preference for credit.
SEC filings for BAUG aren't indexed yet — common for recently launched funds. Browse the issuer's filings on SEC EDGAR directly.