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Buffered/Defined Outcome ETFs

Kiplingers published an article in the June issue on Buffered/Defined Outcome ETFs such as BJAN, BFEB, BMAR, etc. The main players listed are Innovator, First Trust, AllianzIM and TrueShares.

Anyone use these products? Experience, opinions?

Comments

  • +1 bump
  • Read the fine print VERY closely and also beware of counterparty risk, both of which plagued these things back in 2008 and led to many shareholder lawsuits against the big banks. At least with structured notes that did this during the mid-00s, how they calculate buffers and what happens if the markets close even *once* outside that line might make a big difference in whether you get all the expected returns or just your original money back.

    ETFs might be better than structured notes here, though I've not looked into them. Either way, do your homework and again, read the fine print.

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