Core Insights - A significant wave of Baby Boomer retirements is occurring, with many individuals lacking the expected financial assets for retirement [1] - The 2008 Financial Crisis and rising costs, including post-pandemic inflation, have adversely affected Boomers' retirement plans [1] Income ETFs - The rise of income ETFs, particularly covered call ETFs, provides a solution for investors seeking current income while maintaining equity exposure [2] - Covered call ETFs can limit upside potential but offer a combination of income and capital appreciation, appealing to those nearing retirement [2] Strategy Comparison - Not all covered call ETF strategies are equal; traditional monthly options can restrict upside if equities rally past the strike price [3] - Daily covered call ETFs aim to provide higher income and better market participation by utilizing options that expire daily, overcoming limitations of monthly strategies [4] Example of Income ETF - The ProShares S&P 500 High Income ETF (ISPY) exemplifies a successful strategy, targeting high income and S&P 500 returns with a 55 basis point fee, achieving a 12.2% year-to-date return and an 8.7% 12-month distribution rate as of November 30 [5] Future Outlook - As economic volatility persists, income ETFs, especially covered call solutions like ISPY, are positioned to support investors, particularly those nearing retirement, by providing meaningful equity exposure [6]

Core Insights - Defined outcome ETFs are projected to grow from $69 billion today to over $334 billion by 2030, driven by an aging US population seeking to limit risk in their portfolios [1] Group 1: Market Trends - The rapid growth of defined outcome ETFs is partly due to baby boomers nearing retirement, which is leading to a shift in retirement planning strategies [1] - Approximately 10,000 baby boomers retire daily, indicating significant potential for growth in downside protection products [2] Group 2: Investor Preferences - Defined outcome products are appealing to older investors and those with lower risk tolerance due to their ability to reduce volatility while providing exposure to volatile asset classes [2] - The use of derivatives in defined outcome ETFs allows for more predictable returns, addressing the uncertainty in market expectations [2] Group 3: Competitive Landscape - Innovator and First Trust dominate the defined outcome ETF market, controlling over 75% of it, with a total of 28 firms offering defined outcome products [3]