Some investors have Marathon Man-level paranoia about the markets.

While most buffer ETFs on the market haven’t had an opportunity to prove themselves, as they often have one-year outcome periods and have operated in a bull market, investors like them anyway (Uncertainty is a powerful selling point.) There were about 150 defined-outcome products on the market at the end of 2022, during which time the S&P 500 slid 19%. Today, there are roughly three times as many, and money has consistently poured into the category. 

“We, and the other issuers, are spending time educating advisors and investors about the qualities of these products. That’s resonating really well,” said Charles Champagne, head of ETF strategy at Allianz…