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Buffered ETFs PJUL, BSEP and QBUF target defined downside protection
PJUL, launched in 2018, holds about $1.3 billion in managed assets and seeks to protect the first 15% of S&P 500 losses over its July 1 to June 30 outcome period.
Buffered ETFs are gaining attention as an alternative to traditional balanced portfolios, using options to pre-set downside protection over a defined outcome window while still linking returns to benchmarks such as the S&P 500 or Nasdaq-100, according to MarketBeat Ratings.
One example highlighted is the Innovator U.S. Equity Power Buffer ETF July (PJUL), launched in 2018 and described as one of the largest buffered offerings, with managed assets of about $1.3 billion. The fund aims to track the return of the SPDR S&P 500 ETF Trust while protecting against the first 15% of losses, and it lists a starting cap of 13.98% before an annual fee of 0.79%.
MarketBeat Ratings also notes PJUL’s defined outcome period, which runs from July 1 through June 30, with investors buying after July 1 potentially not realizing the intended outcome. The outlet further describes Innovator U.S. Equity Buffer ETF September (BSEP) as functioning similarly to PJUL by tracking SPY and using options to cap both potential upside and downside within its buffering structure.
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