FINSUM + Magnifi: How Hot New Buffer ETFs can Help in the Current Environment
(October 2020)
If there is one corner of the vast ETF world that has been getting attention recently, it is buffer ETFs. Relatively new to the scene, this type of ETF tries to ensure returns to investors within a set range. For example, some will allow you returns of up to 16%, while protecting against any losses of more than 10%. They have a defined timeline, with one year being common. There are currently about 50 buffer ETFs in the market, with over $4 bn in assets total. Two of the top buffer ETFs by AUM are the FT CBOE Vest US Equity Deep Buffer ETF- February (DFEB, $531m AUM), and the Innovator S&P 500 Power Buffer ETF (PJAN, $295.81m AUM).
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