Buffered ETFs: The First Wave of Structured Products in ETFs

The Rise of Buffered ETFs

• 📈 Buffered ETFs have seen a meteoric climb in demand, especially since the pandemic, as investors seek growth with risk protection.
• 🎯 This demand is driven by a massive demographic shift where wealth is moving from accumulation to distribution phases.
• 💡 Defined outcome ETFs and the buffered space are seen as the first wave of traditional structured product strategies adapting to the ETF wrapper.

Uncapped Buffer ETFs Explained

• 🚀 TrueShares ETFs is a pioneer in uncapped buffered ETFs, offering downside protection without limiting upside gains.
• 💰 This structure is particularly valuable in the current market environment of gradual, record-high gains, allowing participation in significant upward moves.
• 📊 Uncapped ETFs historically deliver between 75% and 85% upside capture without a limit, crucial for long-term compounded returns.

Understanding ETF Costs and Suitability

• ⚠️ While buffered ETFs have a higher fee structure than regular ETFs, their value is justified if they match investor objectives and risk profiles.
• 🧩 Education is key in the defined outcome and buffered ETF space to match time horizons, investment objectives, and risk profiles with the correct product.
• 🧠 Investors in this space are often looking for a smoother investment ride and peace of mind, which these products aim to provide.
• ✅ For most investors, the ability to assemble these products and make them turnkey within the ETF wrapper justifies the associated fees.