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Stock Rally Is Driving Billions Into Funds That Limit Losses

  • Buffer ETFs lure over $2 billion this year in pandemic chaos
  • Fear of missing out, virus concerns stoke appeal, says Bond
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The darkening economic backdrop to the U.S. equity rally is translating into booming demand for a breed of young funds that promise to both share in gains and cushion losses.

Investors have poured more than $2.2 billion this year into exchange-traded funds known as buffers, which seek to shield them against a certain percentage of declines in return for a cap on their potential upside.