Buffered strategies have been used by institutions for decades to hedge risk. These strategies have come to the forefront in a market environment where more traditional forms of risk management have proven challenging.
No fixed income means no taxable interest, while a 100% ETF portfolio means it tends to have less in taxable capital gain distributions compared to a similarly structured mutual fund.
No Credit Risk
There is no risk associated with borrowers failing to make their payments or defaulting on loans held because there are no bonds or fixed income.
Can be bought and sold daily, making funds readily available upon settlement, as with any ETF.
No Surrender Fees
As opposed to buffered annuities, there are no surrender charges or schedules.
Buy/Hold Plus – Securities offered through TFS Securities, Inc., member FINRA/SIPC, a full service broker dealer located at 437 Newman Springs Road, Lincroft, NJ 07738 (800)614-2980. Buy/Hold Plus is a registered trademark of TFS Advisory Services, an SEC Registered Investment Advisor and Division of TFS Securities.
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