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This popular ETF trend is helping investors manage risk exposure

·1 min

While some investors express concerns about the potential limiting of returns for exchange-traded funds (ETFs) with options overlays, experts highlight a key benefit. Using options as hedging strategies can protect against significant losses and provide downside protection for investors. This risk management strategy is gaining popularity among investors, particularly in active ETFs with options-embedded strategies. As a result, more investors are moving their investments from popular fixed-income products to risk assets. Covered call ETFs based on the Nasdaq-100 index are becoming increasingly popular, allowing investors to benefit from the strength of Big Tech.