IJAN uses FLEX options in an effort participate in the price performance of the iShares MSCI EAFE ETF (ticker: EFA), up to a predetermined cap, while buffering some downside loss over a one-year period starting each January. The fund foregoes some upside return as well as any dividend component, because the options are written on the price (not total) return version of the shares. In exchange for preventing realization of the first 15% of EFAs losses, investors forego upside participation above a certain threshold, which is reset annually.
