Fund ExplorerIndicesInsightsVideosPricing

Exploring Defined Outcome ETFs

Structured products in an ETF wrapper – a recipe for disaster?

Ben McMillan & Nicolas Rabener
10 min read
16 Nov 2020

SUMMARY

  • Defined outcome ETFs have quickly gathered almost $5 billion in assets
  • Not unexpected given their much lower drawdowns when the market crashed in March 2020
  • However, they are complex and expensive products and there are viable alternatives

INTRODUCTION

If ETFs had an arch enemy, then it probably would not be mutual funds, but rather structured products. ETFs symbolize simplicity, transparency, liquidity, and low fees. In stark contrast, structured products are generally complex, opaque, difficult to trade, and expensive.

Keep reading with Institutional

Includes the full research library of 400+ articles, plus Returns Analyzer and Risk Analytics for return and risk contribution analysis.