Buffer ETFs are growing with new funds from iShares, even as stocks rally

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BlackRock's iShares launched two new defined outcome funds on Friday, joining a growing area of the ETF market.

Buffer funds that use options to protect investors against downside in exchange for capping gains are showing staying power in 2023 despite the market rally, attracting investor cash and new entrants. The latest funds come from one of the dominant players in asset management. BlackRock's iShares launched two new defined outcome funds on Friday — the iShares Large Cap Moderate Buffer ETF and the iShares Large Cap Deep Buffer ETF .

mountain The January buffer ETF from Innovator rallied in the first half, but not as much as the S & P 500. "There's a psychological challenge that happens when you use a buffer which is that you take the position and then maybe a month or two months later, you're maybe at the cap. And now you're way above the buffer level and have no potential gains.

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