BufferLABS is an independent investment research firm and investment research publisher specializing in Buffered ETF research and reporting designed for Registered Investment Advisors (RIAs). We produce periodic, timely, and industry-leading proprietary research covering the majority of the Buffered ETF universe.
Since Buffered ETFs were first introduced in 2018, they have experienced strong commercial success and investor adoption, reaching total assets of more than $60 billion. We expect this early success to continue and to accelerate due to the compelling features of Buffered ETFs when compared to other downside protection alternatives. We also think that downside protection will be a growing area of interest for investors as they age, which should be a strong source of demand for many years to come.
The introduction of buffered ETFs solved some big issues with competing downside protection instruments (structured notes and indexed annuities) by offering lower fees, daily liquidity, transparency of holdings, and lower counterparty risks. But, in solving these problems, buffered ETFs created other challenges that need to be actively monitored and managed.
These challenges include managing to reset dates, evaluating capture ratios, evaluating remaining caps and buffers, and comparing instruments against one another. There are hundreds of buffered ETFs with different reset dates, upside caps, buffer depths, and from many providers. Thus, the need for comprehensive analysis and simultaneous comparison is critical for success. The risk of holding stale, stagnant, and sub-optimal ETFs is high. Our research and ranks will help keep a portfolio of buffered ETFs invested in timely and compelling buffered ETF assets.
BufferLabs weekly reports cover most buffered ETFs in our universe with standardized components for easy assessment and comparison. We are continuously expanding our coverage to provide comprehensive research.
The report header shows ticker, score, provider, tracked index, and underlying asset. The table displays price, outcome period end date, and cap/buffer information quoted in terms of underlying price.
The ADOPT Model uses Black-Scholes components to assess expected price movement relative to underlying assets. It quantifies how much buffered ETFs lag in up markets and decline less in down markets.
Overall Score reflects risk/reward profile, not risk level. High scores may indicate protective ETFs with limited upside or higher-risk ETFs with reasonable protection. Low scores signal ETFs with more risk than their upside potential warrants.
The box plots show score distribution across all ETFs, displaying median, quartiles, and outliers. The box represents middle 50% of data, with "whiskers" extending to values within 1.5× box width from quartiles. The red line shows this ETF's score.
Bullish Score assesses upside participation in near-term market gains. Even top-scoring buffered ETFs lag the underlying in up markets. Higher scores indicate better upside participation for a protection tool.
Bearish Score measures downside protection during market declines. Higher scores indicate the ETF is expected to decline less during underlying asset drawdowns.
The vertical chart visualizes the ETF's current position relative to its cap and buffer, showing the underlying asset price versus the strike prices of the ETF's options holdings.
The historical chart compares one-year performance against the underlying asset and our proprietary buffered ETF index, marking outcome period transitions. Our index includes the 100 largest S&P 500-tracking buffered ETFs.
This chart shows expected ETF prices relative to underlying prices at report date (blue) and outcome period end (green). The blue line is time-variant and will match the green line at period end. Best for general price relationship assessment.
The delta chart shows current total delta of options holdings relative to underlying price. Delta is the partial derivative of ETF price relative to underlying price. This time-variant chart indicates current ETF characteristics.
Scenario analysis tables show projected ETF price changes for given underlying asset moves. 90-day scenarios refer to calendar days from report date. For outcome periods shorter than the scenario timeframe, tables show values for the final day of the period.
Our ETF tables make it easy to view and compare ETFs. They are intuitive to use and easy to navigate. Select a row to open an individual ETF report page. Our ETF tables are fully responsive and work on all devices.
Search for specific tickers, providers or AUM by using the instant search fields.
Filter the ETF scores easily by using the drag and drop filter sliders.
Sort the table by any of the columns by clicking on the column title. Click again to reverse the sort order.
Simply select a row to open an individual ETF report page. Navigate the ETF report using the embedded Adobe PDF viewer and download any PDF reports using button at the top of the report.
Buffer Labs can help you meet and exceed goals for a stable and successful future. Sign up for our reports today!