Buffer ETFs have become one of the fastest-growing product lines in finance. But what risks are buffer investors carrying without realizing it? Let's zoom in on the two areas where they fall short and propose potential solutions that seek to address these issues. Improving Buffer Strategies: Pay Attention to the Tails! was originally published at Alpha Architect. Please read the Alpha Architect disclosures at your convenience.| Alpha Architect
On the surface, buffer ETFs appear attractive: they seek to capture some upside while mitigating a portion of losses. However, this does not mean they are risk-free. In fact, under certain market conditions, these products can significantly underperform. The Problem with Buffer ETFs: Cap the Upside & Expose the Downside was originally published at Alpha Architect. Please read the Alpha Architect disclosures at your convenience.| Alpha Architect