So-called buffer ETFs offer investors exposure to the market’s ups and downs, with limits on both directions — hence providing potential gains and protection. The funds are attracting inflows as a more efficient and practical alternative to similar defensive strategies.
A new STOXX whitepaper explores the relative performance behind a hypothetical European buffer index to assess its benefits and drawbacks. Using the EURO STOXX 50® benchmark as an underlying asset, the study analyzes the types of market drawdowns in which buffer strategies can perform the best, and how that performance evolves over the longer term.
Explore the findings by downloading the report.
