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]

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]