In An Uncertain Stock Market Environment, A 'Buffer' ETF Offers 100% Downside Protection, With Capped Gains
In An Uncertain Stock Market Environment, A 'Buffer' ETF Offers 100% Downside Protection, With Capped Gains
Buffer ETFs, also referred to as defined-outcome ETFs, provide safeguarding against drawdowns for a specified period through the utilization of options that secure an investment's outcome. In exchange for capping certain gains, they absorb a portion of potential stock market losses.Investors have traditionally employed strategies such as hedging and implementing stop losses to protect themselves against downside risk in the stock market.
传统上，投资者采用套期保值和实施止损等策略来保护自己免受股票市场的下行风险。
Innovator Capital Management, an ETF issuer, provides an alternative option for investors, by offering a series of "buffer ETFs" that offers downside protection by limiting losses, according to Bloomberg.
创新者资本管理据彭博社报道，ETF发行商通过提供一系列 “缓冲ETF”，通过限制损失来提供下行保护，为投资者提供了另一种选择。
On Tuesday, the company's newest ETF, the Innovator Equity Defined Protection ETF (NYSE:TJUL) began trading. The fund, which tracks S&P 500 returns with a 100% downside buffer over a two-year outcome period, has an upside cap of 16.62%.
周二，该公司最新的ETF， 创新者股票定义保护ETF 纽约证券交易所代码：TJUL）开始交易。该基金，它追踪 标准普尔 500 在两年业绩期内，回报率为100％下行缓冲，上限为16.62％。
Buffer ETFs, also referred to as defined-outcome ETFs, provide safeguarding against drawdowns for a specified period through the utilization of options that secure an investment's outcome. In exchange for capping certain gains, they absorb a portion of potential stock market losses.
缓冲ETF，也称为固定结果ETF，通过使用确保投资结果的期权，在特定时期内提供防范亏损的保障。作为限制某些收益的交换，它们吸收了部分潜在的股市损失。
It's important to note that buffered ETFs don't possess any tangible stocks or bonds; instead, they rely on options to mirror the performance of an index.
值得注意的是，缓冲交易所买卖基金没有任何有形股票或债券；相反，它们依靠期权来反映指数的表现。
"If we look at the insurance and structured-note world, we find that there is far more demand for products that give you some equity upside, but with 100% downside protection built into the products," Graham Day, chief investment officer at Innovator told the outlet. "That's what we are going after with this Defined Protection ETF — to, for the first time ever, give investors access to the equity markets, but with a 100% buffer built into the product."
“如果我们看一下保险和结构性票据领域，我们会发现对能给你带来股票上涨空间的产品的需求要大得多，但产品内置了100％的下行保护，” 格雷厄姆日，Innovator的首席投资官告诉媒体。“这就是我们对这款定义保护ETF的追求——这是有史以来第一次让投资者进入股票市场，但产品中内置了100％的缓冲区。”
Trading the upside in volatility is another way traders can protect themselves from market downturns. Traders wishing to trade the volatility in the stock market can use MIAX's SPIKES Volatility products. The products, which are traded on SPIKES Volatility Index (XMIO: SPIKE), track expected volatility in the SPDR S&P 500 over the next 30 days.
交易波动率的上行空间是交易者保护自己免受市场低迷影响的另一种方式。希望交易股市波动率的交易者可以使用 MIAX 的 SPIKES 波动率产品。这些产品，可以用来交易 SPIKES 波动率指数 (XMIO: SPIKE)，追踪预期的波动率 SPDR 标准普尔 500 在接下来的 30 天内。
Read Next: This Exchange Has Gained A 16.24% Foothold In Just A Matter Of Years, Disrupting The Industry - How To Trade Some Of The Most Cutting Edge Volatility Products On The Market
继续阅读：该交易所在短短几年内就获得了16.24％的立足点，颠覆了该行业——如何交易市场上一些最前沿的波动率产品
Photo: Shutterstock
照片：Shutterstock
译文内容由第三方软件翻译。
