AI Overvaluation Bothering You? Try Buffer ETFs

Group 1 - Concerns about overvaluation in the AI sector, timing mismatches in investments, and uncertainties in circular financing have negatively impacted tech stocks, leading to declines in the Nasdaq-100 and S&P 500 [2][3] - Oracle's shares fell 14% due to revenue misses, affecting related AI companies like NVIDIA and Micron, while Broadcom's stock dropped about 11% despite strong earnings, raising worries about high capital spending and delayed AI revenue [3][10] - Analysts remain bullish on AI's growth potential, but sudden selloffs in tech stocks may cause anxiety among retail investors [4] Group 2 - Defined Outcome ETFs are gaining popularity as they offer downside protection while allowing participation in market upside, making them an attractive investment option for 2026 [5] - These ETFs use options to create a structured payoff profile, capping maximum returns and buffering a specific percentage of losses, typically between 10% to 20% [6] - Goldman Sachs Asset Management is expanding its focus on defined outcome ETFs by acquiring Innovator Capital Management for $2 billion, expected to finalize in the first half of next year [8] Group 3 - The FT Vest Laddered Buffer ETF (BUFR) aims for capital appreciation with limited downside risk, charging 95 bps in fees, and has returned 9.7% over the past six months [9] - The FT Vest Laddered Nasdaq Buffer ETF (BUFQ) provides large-cap equity exposure while limiting downside risk, charging 100 bps in fees, and has gained about 9.8% over the past six months [11] - The AllianzIM U.S. Large Cap Buffer20 Dec ETF (DECW) matches returns of the SPDR S&P 500 ETF Trust with a 20% loss buffer, charging 74 bps in fees, and has increased by 11.3% over the past six months [12]