This product uses the SPDR S&P 500 ETF (SPY) as its underlying asset and builds a defined outcome structure with FLEX options. During the outcome period, it captures roughly twice the underlying asset's gains on the upside, up to a cap, and buffers the initial portion of losses on the downside.

It suits investors who want exposure to US large-cap stocks along with accelerated upside and partial downside buffering within a defined structure.

It is an actively managed ETF run by Innovator.

By combining FLEX options on SPY, the fund creates a structure that captures roughly twice the underlying asset's gains on the upside, up to a cap, and buffers losses in the initial range on the downside during the outcome period. When the outcome period ends, it automatically resets with a new cap and buffer range.

• Combines accelerated upside and partial downside buffering in a single product
• Automatic reset at the end of each 1-year outcome period

Assets under management (AUM) are $58.9M, and the total expense ratio is 0.79% per year.

Unlike other buffer products from the same issuer, this one accelerates the upside but imposes a cap, which is the structural difference.

Performance depends on how US large-cap stocks, the underlying asset, move and on where the fund stands within its outcome period. Because of the cap and the buffer range, its returns may not match those of the underlying asset exactly.

Fund flows follow demand for defined outcome structures, and when market volatility rises, investors seeking downside buffering sometimes turn their attention to this type of product.

Its strength is that it offers accelerated upside and partial downside buffering within a defined structure, while its weaknesses are the cap on gains and the complexity of the structure.

Products shown in the table such as BUFR, SFLR and BUFD are buffer ETFs focused on downside buffering, and they are alternatives with a stronger loss-protection character than upside acceleration. Unlike these, this product accelerates the upside but has a cap, so it is advisable to compare the purpose of each product, including the buffer size and the upside approach, before choosing.

Here are the points to review before investing in XBOC. With a defined outcome structure, you need to understand the cap, the buffer range and the fund's current position within the outcome period in advance. Entering partway through the period may bring conditions that differ from those at the start, so caution is needed.

The cap on gains and the change in conditions when entering midway through the outcome period are the main risk factors. Losses beyond the buffer range fall entirely on the investor, and because the structure is options based, returns may not match those of the underlying asset exactly, which should also be taken into account.

It is worth considering for investors who want accelerated upside and partial downside buffering within a defined structure, and it is advisable to approach it only after fully understanding the cap and the outcome period structure.