Why Buffer ETFs May Fall Short for Long-Term Investors

Some ETFs have “buff” in their names, but that doesn’t mean they’re strong performers. Buffer funds have become the largest category within ETFs by number of products, and they are among the fastest growing by assets. By employing options, they offer protection from losses, but that doesn’t necessarily serve most long-term investors well, according to a recent report from Morningstar. “They definitely fit best with investors that have shorter time horizons,” said Zachary Evens, Morningstar manager resea ...