BlackRock launches stock ETF MAXJ with 100% downside hedge.

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(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.

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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.

finance.yahoo.com/news/blackrock-launches-stock-etf-100-144057919.html

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