Innovator Growth-100 Power Buffer ETF - March (NMAR) seeks to provide exposure to the Nasdaq-100 Index with downside protection and capped upside over a one-year outcome period ending in March. This defined outcome ETF uses options strategies to buffer against the first 10-15% of losses while limiting gains to a predetermined cap.
How It Works
NMAR employs a sophisticated options overlay strategy using FLEX options on the Nasdaq-100 Index to create its defined outcome profile. The fund purchases protective put options to provide downside buffer protection while selling call options to finance the strategy, creating an upside participation cap. Holdings consist primarily of these FLEX options contracts rather than individual stocks. The outcome period resets annually in March, establishing new buffer and cap levels based on prevailing market conditions.
Key Features
- Provides 10-15% downside buffer protection over one-year periods, limiting losses from Nasdaq-100 declines within that range
- March outcome period timing allows investors to align with specific calendar planning and tax considerations
- Uses FLEX options for precise customization of buffer and cap levels based on market conditions at reset
Risks
- This ETF can lose value beyond the buffer if Nasdaq-100 declines exceed 10-15%, with losses accelerating dollar-for-dollar thereafter
- Upside participation is capped at predetermined levels, potentially missing significant Nasdaq-100 gains during strong bull markets
- Options strategies create complexity risk where tracking errors, early exits, or market disruptions can impact defined outcomes
Who Should Own This
Best suited for conservative investors with 1-year time horizons seeking equity exposure with downside protection. Low-to-medium risk tolerance required, understanding that gains are capped. Works as satellite holding (5-15% allocation) for investors prioritizing capital preservation over maximum growth, particularly those planning around March timing for tax or rebalancing purposes.