Buffered ETF Model
The goal is to provide a more predictable risk-adjusted rate of return. The structure of a buffered ETF is to provide a more predictable floor and ceiling on the portfolio's annual rate of return.
This portfolio is designed for the investor who desires a high degree of risk/volatility control and a more consistent long-term rate of return.
The primary goal of the Buffered ETF is to reduce losses during declining market periods. All ETFs provide a downside buffer between 6 to 20%. These buffers will guard against downside risk up to the buffer limits. All ETFs in the portfolio will contain either an annual or quarterly reset.
Example Portfolio
| EALT | 6.7% | 15% | 50% |
| ZALT | 3.35% | 10% | 30% |
| BALT | 2.75% | 20% | 20% |
Each of these ETF positions will automatically reset quarterly. The Buffer tends to stay constant, and the cap can increase or decrease.
