As the explosion in popularity of structured (buffered) exchange-traded funds (ETFs) has swept through the US market, structured product investors now have the advantage of opting for ultimate customisation and protection within their portfolios.
Once introduced as a saving grace investment concept during the financial crash of 2008, ETFs soon became the new adversary of structured notes, which had spiraled in value and demand at the time. According to Karan Sood (pictured) , chief executive officer at Cboe Vest, several investors bought and held what they initially assumed to be principally-protected notes but after the Lehman’s collapse, these instruments traded for substantially lower than their initial values. Sood attributes
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