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Goldman turns to derivatives-based ETFs as investor demand rises
The bank says ETF structures that use derivatives to target stocklike returns or regular income are drawing sustained investor interest.
The Wall Street Journal Markets reports that Goldman Sachs is leaning further into investor demand for what it calls “boomer candy,” a reference to ETF products that appeal to income and return-seeking investors.
The outlet says the ETFs are designed to deliver stocklike exposure or regular income, using derivatives inside the funds to help manage downside risk.
According to the report, investor interest in these ETF strategies reflects an ongoing preference for products that can provide familiar payoffs while limiting downside compared with holding the underlying exposure directly.