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 examplesHow buffer ETFs have performed over the past five yearsWhat are the risks of buffer ETFsHow loss aversion and narrow framing contribute to the popularity of buffer ETFsAre buffer ETFs worth it and what are some alternative strategies that could be used instead Sponsors Shopify  NetSuite Insiders Guide Email Newsletter Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter Our Premium Products Asset Camp Money for the Rest of Us Plus 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 Monetizing Loss Aversion for Fun and Profit—Paul Kedrosky Thirty Years of Prospect Theory in Economics: A Review and Assessment by Nicholas C. Barberis—Journal of Economic Perspectives 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) Related Episodes 465: Transforming Financial Regrets into Portfolio Gains: Five Strategies for Navigating Investment Emotions 460: Should You Be Invested 100% in Stocks Before and During Retirement? A Recent Study Says Yes.  451: How Much Should You Invest in Stocks? The Art of Position Sizing in a Volatile Market 394: How to Get Better at Risk Taking 321: How to Analyze Complex Investments See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.