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Looking for the hottest newinvestmentvehicle?
Well, look no further.
Buffer ETFs (exchange-traded funds) are currently one of Wall Streets most popular offerings.
But, for the uninitiated, what are buffer ETFs andare they a good investment choice?
Like most investments, however, ETFs are subject to market fluctuations.
Yet, they arent without drawbacks.
Does the Pro Outweigh the Con?
By purchasing a fund that caps growth, investors could be leaving large amounts of money on the table.
Theyre less risky than stocks alone, have no risk of default and are tax efficient.
Sounds great, right?
Well, they could be.
But double-check to read the fine print.
Buffer ETFs have what is known as an outcome period, where traditional ETFs do not.
You may not getfull upside exposurewhen buying midway through the outcome period, wrote Dore.
Similarly, selling before the outcome period ends could limit downside protections.
However, buffer ETFs do not net the most money over the long term.
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