Latest news with #bufferETF
Reuters
3 days ago
- Business
- Reuters
Cathie Wood's Ark files for new ETFs to limit losses in flagship fund
July 7 (Reuters) - Cathie Wood's Ark Investment Management has filed proposals for four new exchange-traded funds that aim to cushion potential losses in its flagship ARK Innovation fund (ARKK.P), opens new tab. These ETFs mark Ark's entry into the buffer ETF market, where funds use options to limit losses while capping gains. The strategy, already used by companies such as BlackRock (BLK.N), opens new tab, Allianz and Innovator, has gained popularity among investors seeking protection in volatile markets. The proposed funds - ARK Q1 Defined Innovation ETF, ARK Q2 Defined Innovation ETF, ARK Q3 Defined Innovation ETF and ARK Q4 Defined Innovation ETF - will each run on a rolling 12-month schedule beginning in January, April, July and October, respectively, according to a filing with the U.S. Securities and Exchange Commission last week. Each fund aims to limit a drop in the share price to 50% in the ARK Innovation ETF, while passing on gains only if the ETF rises more than about 5%. This comes as U.S. President Donald Trump's tariff war has rattled markets and pushed up volatility, although his policies are expected to benefit the fund's holdings. ARK's biggest holdings include EV-maker Tesla (TSLA.O), opens new tab, crypto exchange Coinbase (COIN.O), opens new tab and trading platform Robinhood (HOOD.O), opens new tab, according to LSEG data. The fund is up about 24% since the start of the year, compared with an about 6% rise in the S&P 500 index.
Yahoo
3 days ago
- Business
- Yahoo
Cathie Wood's Ark files for new ETFs to limit losses in flagship fund
(Reuters) -Cathie Wood's Ark Investment Management has filed proposals for four new exchange-traded funds that aim to cushion potential losses in its flagship ARK Innovation fund. These ETFs mark Ark's entry into the buffer ETF market, where funds use options to limit losses while capping gains. The strategy, already used by companies such as BlackRock, Allianz and Innovator, has gained popularity among investors seeking protection in volatile markets. The proposed funds - ARK Q1 Defined Innovation ETF, ARK Q2 Defined Innovation ETF, ARK Q3 Defined Innovation ETF and ARK Q4 Defined Innovation ETF - will each run on a rolling 12-month schedule beginning in January, April, July and October, respectively, according to a filing with the U.S. Securities and Exchange Commission last week. Each fund aims to limit a drop in the share price to 50% in the ARK Innovation ETF, while passing on gains only if the ETF rises more than about 5%. This comes as U.S. President Donald Trump's tariff war has rattled markets and pushed up volatility, although his policies are expected to benefit the fund's holdings. ARK's biggest holdings include EV-maker Tesla, crypto exchange Coinbase and trading platform Robinhood, according to LSEG data. The fund is up about 24% since the start of the year, compared with an about 6% rise in the S&P 500 index.
Yahoo
3 days ago
- Business
- Yahoo
Cathie Wood's Ark files for new ETFs to limit losses in flagship fund
(Reuters) -Cathie Wood's Ark Investment Management has filed proposals for four new exchange-traded funds that aim to cushion potential losses in its flagship ARK Innovation fund. These ETFs mark Ark's entry into the buffer ETF market, where funds use options to limit losses while capping gains. The strategy, already used by companies such as BlackRock, Allianz and Innovator, has gained popularity among investors seeking protection in volatile markets. The proposed funds - ARK Q1 Defined Innovation ETF, ARK Q2 Defined Innovation ETF, ARK Q3 Defined Innovation ETF and ARK Q4 Defined Innovation ETF - will each run on a rolling 12-month schedule beginning in January, April, July and October, respectively, according to a filing with the U.S. Securities and Exchange Commission last week. Each fund aims to limit a drop in the share price to 50% in the ARK Innovation ETF, while passing on gains only if the ETF rises more than about 5%. This comes as U.S. President Donald Trump's tariff war has rattled markets and pushed up volatility, although his policies are expected to benefit the fund's holdings. ARK's biggest holdings include EV-maker Tesla, crypto exchange Coinbase and trading platform Robinhood, according to LSEG data. The fund is up about 24% since the start of the year, compared with an about 6% rise in the S&P 500 index. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
New Innovator Buffer ETF Offers 100% Downside Protection
Innovator Capital Management is expanding its footprint in the buffer ETF space with the Innovator Equity Managed 100 Buffer ETF (BFRZ), the firm announced Tuesday. The exchange-traded fund seeks to provide investors with 100% downside protection before fees and expenses via a one-year laddered options portfolio. Its strategy entails investing in the Solactive GBS United States 500 Index, which tracks the performance of the largest 500 companies in the U.S. stock market, then purchasing put option contracts with laddered expiration dates that are three months apart up to a year. BFRZ then sells short-dated call option contracts with expiration dates of around two weeks in an effort to fund the purchases of the put option contracts. It's actively managed by Parametric with an expense ratio of 0.89%. We've seen a surge in 'risk management' as investors pour money into money market funds, Graham Day, chief investment officer at Innovator, told But BFRZ 'is a better risk-off solution for advisors' for two reasons, he added. 'First, when you tie your upside to the equity markets, you have more upside potential than what bonds offer,' Day said. 'Second is the tax status.' He added that while investors may look at a money market fund and get 4% returns, that could actually just be 2.4% after taxes. 'For all of our 100 buffer ETFs, including BFRZ, we don't anticipate paying any capital gains distribution.' Investors that are putting money into vehicles like short-term and ultra-short-term bond funds and money market funds often think those vehicles don't come with a lot of risk, but that's not always the case, Day said. (He pointed to some of those funds that were down 5% to 7% in 2022 as an example). The goal of this new offering is to give investors a similar experience as the safety they feel with bond funds but with built-in protection and some of the equity upside exposure that the firm thinks will, over time, outperform bonds, Day said. '[The fund] gives them that same comfort of the downside protection in a more tax-advantaged nature.'Permalink | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
