This product uses the price return of an underlying ETF that reflects international developed-market equities. Using customized exchange-traded options, it cushions part of the losses over a set outcome period, in exchange for a predetermined cap on participation in gains.

It suits investors who want exposure to the direction of international developed-market stocks and who can understand and manage the upside cap and outcome period conditions that set it apart from a plain equity ETF.

It is a passively managed (index-tracking) ETF operated by Cogi Funds.

Based on the price return of the underlying asset, which excludes its dividends, a combination of options creates the profit-and-loss structure for the outcome period. The downside buffer is not a principal guarantee, and buying or selling in the middle of the outcome period may cause the designed buffer and upside cap to work differently for each investor.

• Option-based outcome structure
• Reflects both a downside buffer and an upside cap

Assets under management (AUM) stand at $1.1M, and the total expense ratio is 0.30% per year.

Unlike a typical equity ETF, it does not pass through every gain of the underlying market, so the downside buffer and the upside cap must be considered together. The further your trade date is from the start of the outcome period, the more complicated it can become to interpret expected profit and loss.

The return profile of this product is affected by price movements in international developed-market stocks, the upside cap set at the start of the outcome period, and changes in option values. Even when the market rises, the portion above the cap may not be reflected, and even when the market falls, losses beyond the buffer range may remain.

Fund flows in structured buffer products are influenced not only by market direction but also by demand to reduce downside risk, volatility levels, the interest rate environment, and option prices. The larger the gap between the start of a new outcome period and your purchase date, the more the conditions facing investors can differ even within the same product.

The downside buffer structure can help with risk management, but this is a product for which the limit on upside participation and the outcome period conditions must be understood together.

No comparable ticker candidate data was provided, so we do not name individual alternative ETFs. When comparing, it is worth distinguishing between products that simply track the same international developed-market equities and structured products that set a downside buffer and an upside cap. Even when they point to the same market, the actual profit-and-loss path can differ depending on whether dividends are included, the conditions for buying during the outcome period, how options are used, and the cost structure.

Before buying, check the start and end of the outcome period, how the current price affects the buffer and the upside cap, and what the lack of distribution history means. Unlike a typical international equity ETF, this product's option design determines the profit-and-loss path, so it is important to be clear about your purpose for holding it.

The risks of this product can arise from declines in international developed-market stock prices, the opportunity cost created by the upside cap, changes in option value and liquidity, and differences in conditions for trading in the middle of the outcome period. The downside buffer is not a device that eliminates losses, and if the market decline goes beyond the buffer range, losses can grow.

The IDJL ETF is a structured product for investors who want access to the price movement of international developed-market stocks while taking a downside buffer into account. However, rather than expecting dividend income, it is important to understand the profit-and-loss structure over the entire outcome period, and to check the upside cap and mid-period trading conditions first.