Investors consider how President-elect Donald Trump's actual policies will compare to his campaign rhetoric on tariffs and tax cuts. Innovator ETFs chief investment strategist Tim Urbanowicz joins Brian Sozzi and Julie Hyman on Morning Brief to discuss the biggest risk to markets in 2025.

"What gives us a little bit of pause is just the extreme sentiment that we're seeing, really, post the election. And the biggest risk that we see next year is that a lot of the stuff that investors have priced in, mainly around the policy side of things, do not play out," Urbanowicz says.

He notes, "That doesn't mean that you can't see the equities continue to tick higher. We actually think that they will because sentiment will continue to improve and go higher. But we need to be wary and conscious of those risks, [as] there's a lot of good news priced right now, and any disappointment, whether it be policy, economic inflation, [or the] Fed, really has the potential to put some downside risks ahead in 2025."

During this uncertainty, "covering a wide range of outcomes is really important," the strategist says, noting that ETFs like Innovator Equity Managed Floor ETF (SFLR) and Innovator Nasdaq-100 Managed Floor ETF (QFLR) are attractive to investors given they offer "downside protection and upside participation really hold a lot of value for investors right now."

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This post was written by Naomi Buchanan.