IJUL vs YDEC

IJULBInnovator Intl Developed Power Buffer ETF

YDECDFT Vest International Equity Moderate Buffer ETF - December

In short

IJUL Most buffer ETFs babysit the S&P 500. IJUL points the same 15% downside cushion at developed markets outside the US, tracking an EAFE index fund up to a cap over a one-year outcome period that restarts each July.

YDEC Most buffer ETFs babysit the S&P 500. This one points the same machinery overseas: it tracks the price return of the iShares MSCI EAFE ETF with the first 15% of losses absorbed and the upside capped, on a one-year clock that resets each December.

Stated mandate

IJUL The fund seeks to track the return of the iShares MSCI EAFE ETF (EFA) up to a predetermined cap while protecting against the first 15% of losses during the outcome period.

YDEC The Fund seeks returns matching the price return of the iShares MSCI EAFE ETF, subject to a 13.03% upside cap and protection against the first 15% of losses during the current outcome period.

Why people hold it

• IJUL The mechanics are fixed by prospectus: absorb the first 15% of the reference ETF's losses over the outcome period, participate in gains up to a cap set when that period begins.innovatoretfs.com
• Foreign exposure, not another S&P 500 clone. The reference asset is the iShares MSCI EAFE ETF, so the buffer sits on developed-market equity.innovatoretfs.com
• At 0.85% a year, it charges exactly the median fee of its buffer peer group. No surcharge for pointing the structure overseas.
• Running since 2019 and one of the strongest implementations in its cohort, with sibling months (IMAR, IAPR, IMAY) available if you want staggered start dates.

• YDEC Buffers are overwhelmingly a US large-cap product. This is one of a small field aimed at developed international stocks instead.ftportfolios.com
• The deal is written down, not improvised: 15% of downside absorbed, a cap set at the start of each outcome period, one year at a time.ftportfolios.com
• December is one of four quarterly start dates in First Trust's international buffer lineup, so staggering entry points across the calendar is easy.ftportfolios.com
• Live since 2020, so it has real outcome periods behind it rather than a launch-week pitch deck.

Worth knowing

• IJUL The cap is the price of the cushion: upside stops there for the period. Buying mid-period means your own buffer and cap differ from the stated terms.
• Return comes from share price, not income. The options-based structure has produced no distributions, so EAFE's dividend stream is not passed through.
• Volume is light next to plain index funds, so spreads and limit orders matter more at the moment you trade.

• YDEC Costs 0.90% a year, above the 0.85% on the Innovator international buffers (IJUL, IMAR, ISEP), and it is thinly traded, so spreads can add to the bill.
• It follows EFA's price return, so index dividends are not passed through. The fund has not been making distributions.
• Buffer and cap are measured start to finish of the outcome period. Buy partway through and your own downside cushion and upside room differ from the headline terms.ftportfolios.com

Full IJUL profile⁠

Full YDEC profile⁠