First in a planned suite of defined outcome funds, the VanEck U.S. Equity Buffer ETF – July (JULV), subadvised by Lido Advisors, is designed to buffer against the first 20% of losses over a one-year period while providing upside exposure to a predetermined cap.¹

Buffered outcome ETFs use investment strategies that differ from more typical products and may not be suitable for all investors. Before investing, please carefully read the prospectus to understand the fund’s strategy and associated risks.

VanEck launched the VanEck U.S. Equity Buffer ETF – July (JULV), which is designed to provide investors with exposure to the potential upside of the U.S. equity market, up to a predetermined cap, with a built-in buffer against initial losses over an annual outcome period.

Volatility is the price of admission for long-term equity returns, but it’s also the reason many investors sell at the wrong time. Buffer ETFs help make a market downturn easier to sit through by defining, in advance, how much downside an investor is willing to accept and how much upside they can capture over a set period. With market uncertainty elevated and demand for defined outcome strategies growing, VanEck is entering the buffered ETF space with a strategy designed to help investors stay invested.

JULV is an actively managed ETF subadvised by Lido Advisors, an independent investment advisory firm with more than $46 billion in regulatory assets under management (RAUM) and over a decade of experience managing option strategies in client portfolios, having overseen billions of dollars in defined outcomes solutions. The fund’s approach is designed to provide returns tied to the price performance of the S&P 500, via FLEX options on the SPDR® S&P 500® ETF Trust, up to a predetermined cap, while buffering against the first 20%¹ of losses over an approximately one-year outcome period that resets each July.

As a defined outcome strategy, the Fund is designed to deliver a known range of potential results, a buffer on the downside and a cap on the upside, for investors who hold shares for the full outcome period.

“Most investors understand that staying invested is one of the keys to long-term investment success, but remaining invested in periods of heightened volatility and uncertainty is easier said than done,” said Ed Lopez, Managing Director, Head of Product Management with VanEck. “We’re very excited to make our entry to the buffered ETF category with JULV and equally as thrilled to be working with Lido Advisors, a team that brings deep expertise in building these types of strategies and putting them to work for their own clients.”

VanEck and Lido expect to introduce additional buffered ETFs over time, each pursuing the same investment objective while offering different outcome periods, providing flexibility for investors and advisors as they seek to incorporate defined outcome strategies into various portfolios.

“We’ve spent years building expertise in defined outcome strategies, and teaming up with VanEck lets us put that experience to work for a whole new universe of investors,” said Jeff Garden, Chief Investment Officer of Lido Advisors. “Markets today ask a lot of investors, and staying disciplined is just as important as staying invested. This is exactly where we believe buffer ETFs can be additive to a portfolio. JULV, and the suite we’re building with VanEck, sit between cash, bonds, and unhedged equities, giving investors a real way to manage downside risk, stay meaningfully in the market, and help keep their footing through periods of significant volatility.”

For JULV, VanEck will regularly publish a range of key updates and data points, including the initial cap and buffer; daily updated values, including the remaining cap; the remaining buffer; how far the fund can fall before the buffer begins; and the number of days left in the period.

VanEck has an established history of identifying structural shifts early and bringing differentiated investment solutions to market. With the launch of JULV, VanEck enters the defined outcome space, offering investors a new way to navigate equity market uncertainty with greater confidence.

Source: VanEck