Protect your investments
in a volatile market

Access the Buffer Protect Strategy in a mutual fund or an ETF, enjoying the benefit of this strategy without the withdrawal penalties, lock-up periods and concentrated credit risks of buffer annuities.

Buffer Downside Losses and Participate in Gains, with Daily Liquidity

Buffer annuities, also known as Registered Index Linked Annuities (RILAs), seek to buffer a level of losses in return for a cap on gains, but may come with drawbacks — including concentrated credit risk, lack of transparency and lack of liquidity.

The Buffer Protect Strategy seeks to add a level of downside protection and upside growth potential to portfolios. The strategy is available — with daily liquidity, transparent pricing, and without the risk of default by the issuing insurance company — in exchange-traded funds (ETFs) and mutual funds.

What is the Buffer Protect Strategy

The Buffer Protect Strategy is an option strategy designed to protect against a specific level of losses in a reference asset (e.g., an index or ETF) over a specific period of time (the "Target Outcome Period"). In return for this protection, there is a cap on investment gains. The cap level is set at the start of the Target Outcome Period, such that giving up potential returns above the cap pays for the buffer protection.

The strategy’s returns will be a function of the level of the reference asset at the end of the Target Outcome Period relative to its level at the start of the Target Outcome Period, as shown below.

Capped
Upside

If the reference asset appreciates more than the cap level:

The Buffer Protect Strategy seeks to provide a total return that equals the predetermined cap level.

Upside

If the reference asset appreciates, but less than cap level:

The Buffer Protect Strategy seeks to provide a total return that increases by the percentage increase of the reference asset, up to the predetermined cap level.

Buffer
Protection

If the reference asset decreases by less than the buffer:

The Buffer Protect Strategy seeks to not participate in losses inside the buffer range.

Buffered
Downside

If the reference asset decreases, but more than the buffer:

The Buffer Protect Strategy seeks to provide a total return that is better than the price returns of the reference asset by the buffer percentage.

The strategy is available in ETFs and mutual funds, and investors can select the level of buffer protection (for example 0 to -10% or -5% to -30%) needed depending on their individual risk tolerance. To learn more about the specific investment products, click on one of the buttons below.

How is the Buffer Protect Strategy built?

Whether as a Buffer Annuity or as a Fund, the Buffer Protect Strategy is built using options. In case of a Buffer Annuity, the issuer of the annuity issues the annuity, but buys the portfolio of options to hedge itself. In case of the Fund, the Fund buys the option portfolio directly, eliminating the issuing middle man. By virtue of owning shares of the Fund, the Fund's shareholders indirectly own the options and through that get access to the Buffer Protect Strategy.

What is an option?
What is a call option?
What is a put option?
How does the Buffer Protect Strategy utilize options?
How do Buffer Annuities differ from Buffer ETFs and Mutual Funds?

Cboe Vest: Inventors of Target Outcome Investments

Cboe Vest was founded in 2012 based on the conviction that investors desire more certainty in their investment outcomes. To address this market need, Cboe Vest created Target Outcome Investments®, which target a defined return profile, with an allowance for a specific level of risk, at a particular point in time.

Total Assets Under Management And Supervision

Approximately $2.5 Billion

(as of 12/31/2020)
Industry Recognition
  • Leading Structured Investment of the Year
  • Morningstar-Rated
  • 2020 Refinitiv Lipper Award Winner
  • 2020 Fund Intelligence Awards Winner: Fund Innovation of the Year
Featured in
1765 Greensboro Station
Place Tower 1, 9th Floor
McLean, VA 22102

(855) 979-6060
info@cboevest.com
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