Investors can’t have it all when it comes to investing in the major U.S. indexes, but they can get close to having it all with an innovative new exchange-traded fund (ETF). It’s a new offering from Innovator Capital Management that offers “stacked” exposure to the upside of three indexes and limits losses via downside exposure to one index.
“A new exchange-traded fund seeks to expose investors to gains from three of the most popular stock indexes while taking on only one major index’s losses,” a Markets Insider article explained. “The Innovator Triple Stacker ETF, managed by Innovator Capital Management, will offer investors capped upside exposure to funds following the S&P 500, the Nasdaq 100, and the Russell 2000 and aim to limit losses to just the S&P 500, Innovator said on Wednesday. The fund will trade under the ticker TSOC.”
“We are very excited to introduce the Stacker ETFs™. We have been working diligently on this product concept for over three years. Now, for the first time in an ETF, investors who hold shares for an entire outcome period have access to triple or double exposures on the potential upside to a cap with a single exposure on the downside, the S&P 500. The Stacker ETFs™ seek to provide advisors with diversified exposure across the U.S. stock markets and can magnify investors’ performance potential without increasing risk beyond exposure to the S&P 500, the benchmark many clients are most comfortable with. It has been an honor for us to witness the growth of the Innovator Buffer ETFs and we believe the ‘Stackers’ will be embraced in the same way,” said Bruce Bond, CEO of Innovator ETFs.
Hedging Against the Dollar
Gold dipped during Monday’s trading session as investors sold off equities and the dollar benefited despite the Federal Reserve holding rates steady last week and promising to keep rates low for the time being. For investors looking to hedge against the dollar, they can look to funds like the Xtrackers MSCI EAFE Hedged Equity ETF (DBEF), which seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI EAFE US Dollar Hedged Index.
The fund seeks investment results that correspond generally to the performance of the underlying index, which is designed to track developed market performance while mitigating exposure to fluctuations between the value of the U.S. dollar and the currencies of the countries included in the underlying index. It will invest at least 80% of its total assets in component securities of the underlying index.
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