A 68-year-old retiree with $400,000 in equities heading into 2026 has a real problem: SPY ran up 27% in the past year, but the VIX still spiked to almost 31 in late March, and the University of Michigan consumer sentiment sits at 53.3, deep in pessimistic territory.
Buffer ETFs offer downside protection up to 10-15% but cap gains at 10-15%, making them suitable for short-term, risk-averse investors. Long-term investors should avoid buffer funds, as they reduce wealth accumulation. PJUL, a buffer ETF, has shown reduced returns but significantly lower risk and quicker recovery from drawdowns compared to the S&P 500.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| TJD Thomas John Drogan PR Inc.IPAL SECURITIES Inc. | 125,073 | $5.07M | $6.14M | $1.08M | 21.23% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 39,606 | $1.77M | $1.94M | $171,709.02 | 9.7% |
Jeff Ameen Spire Wealth Management | 61,113 | $2.06M | $2.99M | $937,565.67 | 45.59% |
| SL Shad Lamm Keystone Wealth Services LLC | 32,160 | $1.48M | $1.58M | $98,727.98 | 6.68% |
Daniel Cesta Pinnacle Wealth Management Group Inc. | 12,080 | $501,095.5 | $591,799.2 | $90,703.7 | 18.1% |
| BATS Exchange | US Country |
The fund is an investment vehicle that primarily focuses on leveraging FLexible EXchange® Options (FLEX Options) to aim at achieving its investment objectives. FLEX Options are a type of exchange-traded option which can be customized according to specific investor requirements, including, but not limited to, the choice of strike prices, expiration dates, and whether the option is American or European style. By investing at least 80% of its net assets in these FLEX Options that reference the SPDR® S&P 500® ETF Trust, the fund seeks to harness the performance of the S&P 500® Index indirectly. The reference underlying ETF is well-regarded for its investments in a broad spectrum of equity securities, particularly focusing on companies with large market capitalizations. However, it's important to note that the fund is classified as non-diversified, meaning it may invest a higher percentage of its assets in a smaller number of issuers compared to diversified funds.
FLEX Options are innovative financial instruments that provide the fund with the ability to tailor its option contracts according to its investment strategy and goals. Unlike standard options, FLEX Options offer the capability to specify various terms such as expiration dates, strike prices, and the exercise style of the options. This customization facilitates precise hedging and strategies based on the forecasted market movements. The fund's significant investment in FLEX Options that refer to the SPDR® S&P 500® ETF Trust allows it to reflect the performance of the equity securities within the S&P 500® Index.
Through its investment in FLEX Options that target the SPDR® S&P 500® ETF Trust, the fund indirectly participates in the performance of the S&P 500® Index. The underlying ETF is a portfolio of equity securities spanning a diverse range of companies, primarily those with large market capitalizations. This exposure to the underlying ETF offers investors the opportunity to benefit from the growth and profit potential of leading U.S. companies without directly investing in stocks. It's a strategy that aims to replicate the performance and risk profile of the S&P 500® through a derivative form, leveraging the flexibility and customization features of FLEX Options to potentially enhance returns.