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BSEP ETF — Holdings & Analysis

The Innovator U.S. Equity Buffer ETF (BSEP) offers a unique approach to equity investing by tracking the SPDR S&P 500 ETF Trust (SPY) with a capped upside and a buffer against the first 9% of losses annually.

With an AUM of $0.20 billion and an expense ratio of 0.79%, BSEP resets its buffer and cap at the end of each outcome period, which is approximately annual. This ETF is designed for investors seeking buffered exposure to the U.S. equity market.

Innovator U.S. Equity Buffer ETF (BSEP) ETF — Price, Holdings & Analysis

The Innovator U.S. Equity Buffer ETF (BSEP) offers a unique approach to equity investing by tracking the SPDR S&P 500 ETF Trust (SPY) with a capped upside and a buffer against the first 9% of losses annually. With an AUM of $0.20 billion and an expense ratio of 0.79%, BSEP resets its buffer and cap at the end of each outcome period, which is approximately annual. This ETF is designed for investors seeking buffered exposure to the U.S. equity market.

ETF Overview

S. Equity Buffer ETF seeks to track the return of the SPDR S&P 500 ETF Trust (SPY), up to a predetermined cap, while buffering investors against the first 9% of losses over the outcome period. The ETF can be held indefinitely, resetting at the end of each outcome period, approximately annually.
BSEP aims to provide investors with exposure to the S&P 500 while mitigating downside risk. The ETF seeks to track the returns of the SPDR S&P 500 ETF Trust (SPY), but with a predetermined cap on gains and a buffer against the first 9% of losses over a one-year outcome period. This strategy is achieved through a combination of options contracts. The fund's sector allocation is heavily weighted towards Technology at 33.1%, followed by Financial Services (12.3%), and Communication Services (10.7%). Other significant sectors include Consumer Cyclical (10.1%) and Healthcare (9.8%). BSEP can be held indefinitely, resetting at the end of each outcome period, approximately annually. This ETF is suitable for investors looking for a defined risk profile in their equity investments.

Risk Metrics

BSEP's risk profile is defined by its buffering strategy and sector concentration. While the 9% downside buffer mitigates some risk, the capped upside limits potential gains. The fund's beta of 0.72 (3Y) indicates lower volatility compared to the broader market. The expense ratio of 0.79% can create a drag on returns, especially in periods of low market volatility or when the cap is reached. The significant allocation to the Technology sector (33.1%) exposes the fund to sector-specific risks. Investors should also consider the complexity of the options-based strategy, which may not perform as expected under all market conditions. As the country exposure is 100% to 'Other', investors should investigate the fund's holdings for more details.

Expense Ratio

0.79%

How Is the Fund Allocated?

SectorWeight
Technology33.1%
Financial Services12.3%
Communication Services10.7%
Consumer Cyclical10.1%
Healthcare9.8%
Industrials8.7%
Consumer Defensive5.4%
Energy3.5%
Utilities2.5%
Real Estate2.0%
Basic Materials1.9%
CountryWeight
Other100.0%

Dividend Yield

0.00%

Risk Metrics

  • Beta: 0.72

Questions & Answers

What is BSEP and what does it track?

The Innovator U.S. Equity Buffer ETF (BSEP) is designed to track the performance of the SPDR S&P 500 ETF Trust (SPY) with a unique twist.

It provides a buffer against the first 9% of losses over a defined outcome period, which is approximately one year. In exchange for this downside protection, BSEP also has a cap on potential gains.

What is the expense ratio for BSEP?

The expense ratio for BSEP is 0.79%. This means that for every $10,000 invested, $79 is deducted annually to cover the fund's operating expenses.

When considering equity ETFs, the category average expense ratio is around 0.44%, making BSEP relatively more expensive. Investors should consider the expense ratio as part of their overall investment decision, especially when comparing BSEP to other ETFs with similar objectives.

What are the top holdings in BSEP?

As a buffered ETF, BSEP's holdings consist primarily of financial instruments designed to provide the buffer and capped upside. The fund's top holdings are composed of various FLEX Options referencing the SPDR S&P 500 ETF Trust (SPY).

These options contracts are used to create the defined outcome strategy. The fund currently holds six positions to achieve its investment objective.

Is BSEP a good long-term investment?

Whether BSEP is a suitable long-term investment depends on an investor's individual risk tolerance and investment goals. The ETF's buffering strategy can help mitigate downside risk, but it also limits potential upside gains.

With a beta of 0.72, BSEP has historically demonstrated lower volatility than the S&P 500.

How does BSEP compare to similar ETFs?

BSEP differentiates itself through its defined outcome strategy, offering a buffer against losses while capping potential gains. Similar ETFs may offer different levels of buffering or different cap rates.

The expense ratio of 0.79% is higher than some traditional S&P 500 ETFs, but is comparable to other defined outcome ETFs.

Does BSEP pay dividends?

According to the provided data, BSEP has a dividend yield of 0.00%. This indicates that the fund does not currently distribute dividends to its shareholders.

Investors seeking income-generating investments may want to consider other ETFs with a history of dividend payments. The fund's focus is on providing buffered exposure to the S&P 500 rather than generating income.