Should You Invest in Defined Outcome Buffer ETFs?

2024/7/10

Money For the Rest of Us

David Stein

David Stein: 我一直在关注新的投资产品，希望在降低风险的同时提高回报。定义收益缓冲ETF是一种相对较新的产品，它通过限制上行收益来换取下行保护。在过去的五年里，我们观察到一些缓冲ETF的回报率，并分析了它们的风险和回报。例如，Innovator US Equity Ultra Buffer ETF (UJAN)自推出以来的回报率为7.4%，而同期S&P 500的总回报率为17.1%。虽然缓冲ETF降低了波动性，但同时也降低了回报。我们可以通过降低股票配置比例并补充低风险资产来复制缓冲ETF的回报，这可能更简单有效。缓冲ETF的回报并非有保证，存在一定的风险，例如费用和提前退出的影响。此外，缓冲ETF的设计初衷是为了应对损失厌恶，但这种心理因素是否值得牺牲潜在收益还有待商榷。总的来说，缓冲ETF提供了一种降低风险的策略，但同时也牺牲了部分潜在收益。投资者需要根据自身的风险承受能力和投资目标来决定是否投资缓冲ETF。 Bruce Bod: 人们对市场感到担忧，不确定是否应该投资股票或债券。他们担心刚投资市场就可能出现崩盘。但这并不是投资缓冲ETF的充分理由。如果投资者对股票和债券缺乏了解，就不应该投资缓冲ETF这种更复杂的投资产品。 Johnson: 长期来看，市场往往上涨，缓冲ETF会牺牲一部分上涨空间。如果投资者愿意为了心理上的舒适感而牺牲一部分潜在收益，那么投资缓冲ETF是可以接受的。但这种权衡是否值得，还有待商榷。

Deep Dive

Chapters

Buffer ETFs offer downside protection with a capped upside. They combine owning insurance for downside protection, financed by selling insurance by capping upside returns. Examples include Innovator U.S. Equity Ultra Buffer ETF and iShares Large Cap Max Buffer June ETF.

Buffer ETFs protect against a certain percentage of losses in exchange for a limit on potential gains.
The outcome period for a buffer ETF is typically one year.
Investors roll into a new outcome period with potentially different buffer and cap levels at the end of each outcome period.
Buffer ETFs use flex options to achieve their defined outcome structure.

Shownotes Transcript

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)

The Dynamics of Defined Outcome Exchange Traded Funds by Luis García-Feijóo and Brian Silverstein—SSRN)