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Stock impact report

Defensive Funds With $51 Billion Get Slammed for Hidden Costs [Yahoo! Finance]

Morningstar, Inc. (MORN) 
Company Research Source: Yahoo! Finance
Most Read from Bloomberg Cuts to Section 8 Housing Assistance Loom Amid HUD Uncertainty Remembering the Landscape Architect Who Embraced the City NYC Office Buildings See Resurgence as Investors Pile Into Bonds Hong Kong Joins Global Stadium Race With New $4 Billion Sports Park NJ Transit to Deploy Customer-Service Teams After Record Delays Buyers have flocked to the products, known as defined outcome or buffer ETFs, plowing in $2.7 billion of fresh money this year through Wednesday, to bring total assets to a record $51 billion, Morningstar Inc. data show. The ETFs — which typically also put a ceiling on how much you make when shares rise — use options to cover losses down to a preset threshold, often 10% or 15%. Now, a cohort of analysts are out with research saying the trades are too fancy for their own good. One argument goes that these funds have delivered subpar returns over the long haul, in markets whose direction of travel is usually up. As hedges, another cr Show less Read more
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