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YOUR MONEY-How to use ETFs as a buffer in volatile markets
Defined outcome exchange-traded funds (ETFs) offer a buffer against losses - meaning, if the market goes down, you do not necessarily lose money. Most ETFs track an index and are a lower-cost alternative to funds that aim to beat the market. "The whole idea is very simple, but it’s profound: It’s the ability to know upfront what your outcomes will be relative to what the S&P 500 does over the next year," said Bruce Bond, CEO of Innovator, who co-founded ETF giant PowerShares, now owned by Invesco.
https://finance.yahoo.com/news/money-etfs-buffer-volatile-markets-100000897.html?.tsrc=rss
Defined outcome exchange-traded funds (ETFs) offer a buffer against losses - meaning, if the market goes down, you do not necessarily lose money. Most ETFs track an index and are a lower-cost alternative to funds that aim to beat the market. "The whole idea is very simple, but it’s profound: It’s the ability to know upfront what your outcomes will be relative to what the S&P 500 does over the next year," said Bruce Bond, CEO of Innovator, who co-founded ETF giant PowerShares, now owned by Invesco.
https://finance.yahoo.com/news/money-etfs-buffer-volatile-markets-100000897.html?.tsrc=rss
