In recent years, the ETF industry has flourished as a proliferation of new strategies has provided investment professionals with a more robust set of tools for managing their clients' wealth. Factor-based, thematic, and actively managed ETFs have grown rapidly, as investors' appetites have expanded beyond ETFs tracking more traditional benchmarks. Among the newest generation of ETFs, those employing "buffered" strategies have seen some of the strongest growth in 2021, with year-to-date net inflows accounting for $871 million of the category's $6.6 billion in total assets under management (as of 3/31/21). As the fastest growing provider of buffered ETFs—known as Target Outcome ETFs® – Buffer Series (Buffer ETFs)—First Trust believes the popularity of this category is poised to explode in the coming years as investment professionals and their clients grow more familiar with how they work, the potential advantages of employing these strategies within an ETF wrapper, and the role they may play within clients' portfolios.
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Posted on Friday, May 14, 2021 @ 8:06 AM
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