(PNOV) Innovator SP500 Power - Overview

The Innovator S&P 500 Power Buffer ETF – November (BATS: PNOV) aims to deliver the upside of the S&P 500 while limiting downside risk through a buffer-and-cap structure. Under normal market conditions the fund must hold at least 80 % of its net assets (plus any investment-purpose borrowings) in the SPDR S&P 500 ETF Trust, which serves as the underlying exposure. The strategy also uses FLEX options-customizable, exchange-traded contracts-to implement the buffer (typically 15 % downside protection) and the upside cap (often around 20 %). Because the portfolio is concentrated in a single underlying ETF, the fund is classified as non-diversified.

Key metrics (as of the most recent filing) include an expense ratio of roughly 0.39 % and a total net asset value of about $200 million. The buffer level is designed to absorb losses up to the first 15 % of a market decline, after which the fund’s performance mirrors the underlying S&P 500. Conversely, any gain beyond the 20 % cap is not captured, which limits upside participation during strong bull markets.

Macro-level drivers that will materially affect PNOV’s performance are: (1) U.S. equity market trends, especially the large-cap composition of the S&P 500; (2) interest-rate dynamics, since higher rates can increase option-pricing costs and affect the buffer’s effectiveness; and (3) volatility levels (VIX), which influence the pricing of the FLEX options used to construct the buffer and cap.

Sector exposure mirrors the S&P 500, with technology and consumer discretionary typically comprising the largest weights; shifts in tech earnings or consumer sentiment can therefore have outsized impacts on the ETF’s returns.

For a deeper, data-driven breakdown of PNOV’s risk-adjusted performance, you might explore the analytics on ValueRay.