In early August, the first defined outcome ETFs will celebrate their third birthday, an anniversary often considered to be a critical milestone in the evaluation of a fund. Since the launch of those funds, the defined outcome landscape has grown significantly, with roughly 130 U.S.-listed ETFs now available.
With the bull market in its second year, and valuations sitting significantly higher than they were a year ago, it is no surprise that ETFs that are meant to protect against a downturn have seen growing interest from investors and issuers alike.
In the first six months of the year, 30 defined outcome ETFs were launched by issuers. This is a faster pace than the first six months of 2020, and matches the number of launches in the category for all of 2019. In total, defined outcome ETFs hold more than $8 billion in assets under management.