DSEP ISSUER
The issuer of the DSEP ETF is PDR Services, LLC (PDR). PDR serves as the sponsor for the SPDR® S&P 500® ETF Trust (the Underlying ETF), which the DSEP ETF references for its investment strategy. The Underlying ETF is an exchange-traded unit investment trust that uses a replication strategy, aiming to invest in as many of the stocks in the S&P 500® Index as practicable. PDR's objective for the Underlying ETF is to seek to provide investment results that correspond generally to the price and yield performance of the S&P 500® Index. The DSEP ETF employs FLEX Options with a target outcome strategy to customize returns for investors based on the performance of the Underlying ETF over specific Target Outcome Periods, offering various levels of protection and potential gains within predefined limits. It's important for investors to carefully consider the cap, buffer, and market conditions when investing in the DSEP ETF, as the returns are subject to specific caps and buffer ranges determined at the start of each Target Outcome Period.
DSEP DIVIDEND
The DSEP ETF, which invests in flexible exchange (FLEX) options referencing the price performance of the SPDR® S&P 500® ETF Trust (the Underlying ETF), does not focus on traditional dividend distributions. Instead, its primary objective is to provide investors with a unique investment strategy. The ETF offers a target outcome strategy that includes a deep buffer against Underlying ETF losses ranging from -5% to -30% over a specific Target Outcome Period, combined with a cap of 16.98% (before fees and expenses). The cap and buffer levels are determined at the start of each Target Outcome Period and are subject to prevailing market conditions, offering investors a potentially tailored risk-return profile. While the ETF may not provide regular dividend payments, its strategy is designed to balance potential losses and gains over the Target Outcome Period, making it suitable for investors seeking specific risk management strategies within their portfolios.
DSEP TRACKING
Tracking the SPDR® S&P 500® ETF Trust is the primary objective of the DSEP ETF. DSEP primarily invests in Flexible Exchange® Options (FLEX Options) that are linked to the price performance of the SPDR® S&P 500® ETF Trust (the Underlying ETF). FLEX Options are customized equity or index option contracts that trade on an exchange, allowing investors to tailor contract terms such as exercise prices, styles, and expiration dates. The Underlying ETF is an exchange-traded unit investment trust that uses a replication strategy, aiming to replicate the performance of the S&P 500® Index. PDR Services, LLC serves as the sponsor of the Underlying ETF, and its goal is to provide investment results that closely mirror the price and yield performance of the S&P 500® Index. DSEP's investment strategy is designed to offer investors a target outcome strategy, with predefined investment outcomes based on the Underlying ETF's performance over a specific period. This strategy includes features like a deep buffer against losses and a predetermined cap on returns, which are adjusted for each Target Outcome Period based on market conditions. It's essential for investors to consider these features before investing in DSEP, as they can impact the potential returns and risks associated with the ETF. DSEP's unique approach allows investors to participate in the potential gains of the S&P 500® while providing downside protection and limiting potential losses, making it an intriguing option for those seeking a specific risk-reward profile within the market.
DSEP CORRELATION
The correlation aspect of the FLEXShares Deep Buffer ETF - September (DSEP) primarily revolves around its unique target outcome strategy. DSEP employs FLEX Options that reference the price performance of the SPDR® S&P 500® ETF Trust, which is closely tied to the S&P 500 Index. Therefore, DSEP's correlation is expected to be high with the broader U.S. equity market, especially with the performance of the S&P 500 Index.
DSEP SECTOR
The DSEP ETF (DSEP) primarily invests in Flex Options that reference the price performance of the SPDR® S&P 500® ETF Trust (SPY), focusing on providing investors with customized exposure to the S&P 500® Index. By utilizing FLEX Options, the DSEP ETF seeks to employ a target outcome strategy that aims to deliver specific investment outcomes based on the performance of SPY over predefined Target Outcome Periods. These outcomes include offering a deep buffer against losses within a range of -5% to -30% of SPY's performance while capping potential gains. Investors in DSEP should carefully consider the cap and buffer levels, as they can significantly impact returns, and the ETF will perpetually offer these strategies, with periodic adjustments to the cap for each Target Outcome Period.
DSEP EXPOSURE
The exposure characteristic of the Innovator S&P 500 Buffer ETF - September (DSEP) revolves around its unique target outcome strategy. This ETF primarily focuses on providing investors with a customized approach to the performance of the SPDR® S&P 500® ETF Trust (the Underlying ETF). DSEP employs flexible exchange® options (FLEX Options) to offer investors predetermined investment outcomes over specific Target Outcome Periods. These outcomes include a deep buffer against losses ranging from -5% to -30% of the Underlying ETF's performance, along with a cap on returns. To navigate this complex strategy effectively, investors can rely on the ETF Insider web app, which simplifies exposure analysis, visualizes data, and uncovers correlations and overlaps in the context of various U.S. ETFs.