A Guardrail for Your Investments: Buffered ETFs
Imagine driving down a beautiful mountain road…
At the end of this highway is paradise, a place you have been striving to get to for years and you are on the right track to get there. This path is full of winding turns, breathtaking views, and steep drop-offs. Without warning, you lose control of your vehicle and cannot turn the wheel any longer and you are barreling toward a cliff. BAM! Your car smashes into the guard rail and you stop there. Your car is totaled, but you are safe. The guard rail kept you from careening off the mountain into oblivion.
A buffered ETF (exchange-traded fund) is a guard rail for your investments. This type of fund can protect, or buffer, against severe drops in the stock market, but this security is not without its trade-offs. Today, Jake and Jeremy discuss buffered ETFs and talk about when this investing tool might be the right choice for your portfolio.
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