BlackRock launches its first ‘buffer’ ETFs for stock-market investors worried about a potential fall

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BlackRock is launching its first "buffer" exchange-traded funds, which are designed to give investors some downside protection in the U.S. stock...

BlackRock is launching its first “buffer” exchange-traded funds, which are designed to give investors some downside protection in the U.S. stock market as well as potential gains with a cap.

The iShares Large Cap Moderate Buffer ETF IVVM and iShares Large Cap Deep Buffer ETF IVVB can help investors “stay invested during times of market volatility,” Rachel Aguirre, head of U.S. iShares product at BlackRock, said by phone. The new ETFs are expected to begin trading on Friday, according to the firm.

The iShares Large Cap Moderate Buffer ETF seeks to protect against the first 5% of quarterly losses, and the iShares Large Cap Deep Buffer ETF provides quarterly downside protection against losses ranging from 5%-20%, the statement shows.

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