ROI Podcast | Episode 24 | What’s Behind the Growth in Buffered ETFs? | Jeff Chang | July 1, 2024

First Trust ROI Podcast

Jeff Chang, President and Co-founder of Vest Financial, discusses the growth of buffered investments over the past few years.

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Luvut

1. Introduction to Buffered Strategies (00:00:00)

2. Jeff Chang's Background in CFA Instruction (00:01:07)

3. Founding Vest Financial (00:02:14)

4. Relationship with First Trust (00:02:47)

5. Defining Buffered Strategies (00:03:29)

6. How Buffered Strategies Are Achieved (00:04:24)

7. Explanation of the Four Options (00:05:13)

8. Trading Off Upside Cap for Downside Buffer (00:07:08)

9. Factors Affecting Buffered Strategy Pricing (00:07:56)

10. Impact of Interest Rates on Buffered Strategies (00:09:54)

11. Role of Implied Dividends (00:10:57)

12. Using Flex Options for Customization (00:13:52)

13. Common Use Cases for Buffered Strategies (00:15:29)

14. Challenges of Managing Money During Inflation (00:17:19)

15. Comparing Low Volatility Funds and Buffered Strategies (00:19:11)

16. Benefits During Market Drawdowns (00:20:20)

17. Determining the Optimal Level of Buffer (00:21:27)

18. Comparing Buffer Strategies with Target Date Funds (00:23:20)

19. Addressing Counterparty Risk in Options (00:24:21)

20. When to Use Buffered Strategies (00:26:03)

21. Market Timing and Buffer Strategies (00:27:09)

22. Macro Economic Outlook (00:28:36)

23. Global Economic Growth and AI Impact (00:31:30)

24. Diversifying Risk with Buffered Strategies (00:33:20)

25. New Equal Weight Buffer Strategies (00:34:50)

26. Jeff Chang's Reading List (00:35:19)

27. Closing Remarks (00:35:39)