Study: Risk-Managed ETFs Didn't Meet 2022 Challenges

A recent study found that over half of risk-managed ETFs designed to mitigate losses performed worse than equities in 2022, including some marketed for black swan events. While some strategies like ASYMmetric Smart S&P 500 ETF (ASPY) and Innovator U.S. Equity Buffer ETF (BJAN) managed to meet downside protection goals over a two-year period, others failed, often due to an over-reliance on long-term Treasurys which suffered from rising interest rates. Experts emphasize the need for dynamic approaches to risk management, considering various economic factors beyond just volatility.