BlackRock launches stock ETF MAXJ with 100% downside hedge . Good investment?
(Reuters) -BlackRock has launched a 'buffer' exchange-traded fund that seeks to offer a 100% downside hedge to risk-shy investors looking to tap the equity markets, the world's largest asset manager said on Monday.
So-called buffer or risk-managed ETFs help maximize returns from an asset for investors and simultaneously provide downside protection over a specific period.
The novel product will likely appeal to investors who are hoping to ride a rally in the stock markets as they continue to trade near record highs, but are concerned that a slowing economy and higher-for-longer interest rates can together hurt sentiment going forward.
Buffer ETFs also typically see lower redemption requests during times of heavy market volatility.
The iShares Large Cap Max Buffer Jun ETF started trading on Monday under the ticker symbol 'MAXJ'.
https://finance.yahoo.com/news/blackrock-launches-stock-etf-100-144057919.html
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