Dual directional ETFs

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Worldwide Exchange: ETF Flows Week of July 7
CNBC Televisionยท 2025-07-11 14:01
ETF Market Trends - ETF market is on track for over $1 trillion in net inflows year to date, indicating strong investor confidence despite market volatility [1][2] - Uncertainty in the market drives advisors and investors to ETFs due to their structure [2] - Defined outcome ETFs, also known as buffered ETFs, mitigate risk by limiting both downside and upside [3] - Defined outcome ETF launches represent 15% of total launches this year, despite accounting for only about 0.5% of total assets [4] Defined Outcome ETFs and Investment Strategy - Defined outcome ETFs allow advisors to know potential outcomes before investing [5] - 90% of surveyed advisors believe the market won't return more than 10% over the next 12 months, leading them to seek hedged investment strategies [6] - Dual directional ETFs allow investors to profit in both positive and negative markets, tracking S&P 500 performance up to 8.7% in positive markets and inversely up to 15% in negative markets [8][9] - Innovator ETFs utilizes options to provide certainty in defined outcome ETFs, including dual direction ETFs [11] - Defined outcome ETFs are "set it and forget it" strategies with options set for a one-year outcome period, ensuring a defined outcome in any market condition [13]