Money For the Rest of Us Should You Invest in Defined Outcome Buffer ETFs?
Buffer ETFs protect against the downside while capping the upside. We examine them closely to see if they are worth it.
Topics covered include:
- How buffer ETFs are structured and some current examples
- How buffer ETFs have performed over the past five years
- What are the risks of buffer ETFs
- How loss aversion and narrow framing contribute to the popularity of buffer ETFs
- Are buffer ETFs worth it and what are some alternative strategies that could be used instead
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Show Notes
BlackRock Enters Booming Market for Stock ETFs With a 100% Hedge by Emily Graffeo—Bloomberg
New Stock ETF Offers 100% Hedge as Buffer Funds Nab $46 Billion by Emily Graffeo—Bloomberg
Monetizing Loss Aversion for Fun and Profit—Paul Kedrosky
Prospect Theory: An Analysis of Decision Under Risk by Daniel Kahneman and Amos Tversk—ECONOMETRICA
Investments Mentioned
Innovator U.S. Equity Ultra Buffer ETF - January Series (UJAN)
Innovator U.S. Equity Ultra Buffer ETF - June Series (UJUN)
iShares Large Cap Max Buffer Jun ETF (MAXJ)
Innovator U.S. Equity Accelerated 9 Buffer ETF (XBJL)
SPDR S&P 500 ETF Trust (SPY)
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