Buffered ETFs, first launched in the US in 2018, offer investors a structured “defined outcome” approach by combining equity market exposure with built-in downside protection and capped upside, using option-based strategies that reset on regular cycles.

Buffered ETFs were first launched in the US market in 2018 and have grown in popularity by total AUM and number of ETFs ever since. Buffered ETFs were the first of what is now usually known as the “defined outcome ETF” family. Buffered ETFs all have an underlying “base” index, in a similar way that structured products do Since simple buffered ETFs came to market other fund types have followed, such as income generating ETFs and more recently those consisting of autoca