Home›ETFs & Funds›ETFs›Advisors increasingly use options strategies within ET…

Advisors increasingly use options strategies within ETFs for risk and income

ETF Trends says advisors are meeting demand for options-based downside protection and income strategies as the classic 60-40 stock and bond mix was pressured in 2022.

Reported · Written up by our desk · ETFs

ETF Trends highlights a shift at the ETF Exchange event in Las Vegas earlier this year, where speakers noted advisors are increasingly embracing more complex, options-based strategies to provide downside protection, income, or both.

The outlet said the rise of ETF products has made these options approaches more accessible, with options-based strategies now viewed as a viable alternative in a more uncertain market environment.

ETF Trends pointed to the 2022 stress test for traditional portfolios, noting that the classic 60-40 allocation saw drawdowns in both stocks and bonds after the U.S. Federal Reserve hiked rates seven times to curb inflation, which it said hit a 40-year high.

In that context, the publication said investors and advisors have been rethinking allocations, and the event helped bring options-based strategies to the forefront as exchanges and ETFs made them easier to implement.

]}]}]}]}}]}]}]}]}]}] [

More like this

Sources