Targeted Outcome ETFs for a Murky Investing Landscape

“Our Buffer Protect Strategy, packaged in a mutual fund, is unique,” said Sood. “It provides access to a portfolio of Buffer Protect Strategies that seek to buffer the first 10% of losses in the S&P 500 while allowing participation in gains to a cap. It offers investors an alternative to manage risk that is complimentary to the traditional 60-40 asset allocation.”

For investors seeking a steady stream of income, Cboe Vest has the Cboe Vest S&P 500® Dividend Aristocrats Target Income ETF (BATS: KNG).

“We have a very interesting dynamic partial covered call strategy on Dividend Aristocrats, targeting a specific level of income. This strategy, accessible in both an ETF and mutual fund, sells calls on a small portion of the holdings of Dividend Aristocrats stocks, seeking to deliver yields of 3 – 3.5% over the annual S&P 500 dividend yield.

Fears of a global economic slowdown saw the Dow Jones Industrial Average post five losing sessions in a row in early March, which is a reminder to investors that the volatility that racked the markets in the fourth quarter of 2018 could return at any time. In 2019, investors are looking to play more defense against volatility and with ETF products from Cboe Vest that focus on target outcomes, they have that peace of mind knowing their capital is in products that have their best interest in mind.

“Target Outcome Investment strategies can deliver return profiles that enhance income or allow investors to shift potentially higher portions of returns for less downside exposure,” said Sood. “They do not require investors to engage in market timing or rebalancing and some automatically lower equity exposure as indexes decline. They can be structured to cover a specific investment time or diversified across a variety of time horizons for investors who have less precise investment goals.”

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