Innovator US Equity Power Buffer ETF July

PJUL

Market cap $1.21B

Buffer ETFs offer downside protection up to 10-15% but cap gains at 10-15%, making them suitable for short-term, risk-averse investors. Long-term investors should avoid buffer funds, as they reduce wealth accumulation. PJUL, a buffer ETF, has shown reduced returns but significantly lower risk and quicker recovery from drawdowns compared to the S&P 500.

An upbeat job market and moderately cooling inflation may prevent the Fed from opting for significant rate cuts in the near future.

Buffer ETFs like PJUL, FFEB, PSEP and JULW may help you ride out the ongoing uncertainty on Wall Street.

Bruce Bond, CEO of Innovator ETFs, explains how they work and when they can be best employed.