Defined Outcome ETFs: Why Content Marketing Isn’t Optional for These High-Growth Products
Defined outcome—or “buffer”—ETFs have surged since launching in 2018, growing into a roughly $60 billion category. Market volatility has only accelerated interest.
But their options-based structure poses unique marketing challenges. Buffer ETFs promise downside protection and capped upside, yet the mechanics can be difficult to grasp—especially for those unfamiliar with structured strategies.
That’s where content comes in. Advisors and investors need help understanding how these ETFs work—and how they can fit in a portfolio. Educational content can close that gap.
Growth meets complexity
Buffer ETFs continue to gain momentum, as noted in a Bloomberg Intelligence webcast highlighting advisor demand for risk-managed alternatives to annuities and structured notes.
The concept is straightforward: buffer ETFs trade some upside to protect against losses, such as the first 15% of a market decline. But the options-based design can still confuse investors, according to Morningstar’s Defined Outcome ETF Primer.
At a recent NYSE ETF Education Series event, leading issuers discussed the evolution of the space and how advisors can implement these tools within diversified strategies.
A content opportunity
Buffer ETFs may continue to gain traction, especially if market turbulence persists.
Major providers like Innovator, AllianzIM, PGIM, and Calamos are expanding offerings—and positioning buffer ETFs as modern alternatives to 60/40 portfolios.
These funds use flex options to structure return profiles, enabling investors to:
- Limit downside without giving up market exposure
- Know their max gains and losses over a set term
- Access options-based strategies—without trading options
But the tradeoff is complexity. For marketers, that creates a prime opportunity: turn education into adoption.
Five key takeaways for content marketers
Defined outcome ETFs are part of a broader industry trend toward more specialized strategies, but they present unique marketing challenges. Here are five things content marketing teams should keep in mind when looking to convince advisors and end-investors of the utility of these products in portfolios:
- Make complexity accessible: Many investors assume that options-based ETFs are complex and speculative. In reality, defined outcome ETFs are designed to simplify risk management, offering transparent structures that help investors know what to expect. Content marketers should focus on education—breaking down jargon and using clear, digestible explanations that hammer home how these exotic-sounding features benefit investors. Showing the depth and liquidity of the options market is another potential strategy to show how defined outcome ETFs are less risky than they may initially appear.
- Leverage data to build trust: Investors are drawn to defined outcome ETFs because they provide structured returns. Marketers can apply this principle by using data-driven storytelling—incorporating performance charts, case studies, and interactive tools that demonstrate how these ETFs are designed work over time.
- Speak to both risk-averse and growth-oriented audiences: Originally designed for retirees and conservative investors, defined outcome ETFs are now appealing to a broader audience. By positioning them as alternatives to traditional bonds or as a complement to growth portfolios, firms are expanding their investor base. Marketers should develop messaging that resonates across different risk appetites.
- Highlight institutional adoption: One of the most interesting developments is the growing use of defined outcome ETFs by institutions. Pension funds and endowments are beginning to allocate to these products as alternatives to hedge funds. Highlighting institutional adoption can enhance credibility and appeal to financial advisors seeking sophisticated solutions.
- Stay ahead of innovation: The defined outcome ETF space continues to evolve, with new offerings like quarterly resetting ETFs, 100% protected principal strategies, and even crypto-linked defined outcome products. Marketers should stay ahead of these developments and proactively create thought leadership content that positions their firm as an innovator in the space.
Making a difference with educational content
Defined outcome ETFs have gone from a niche concept to a fast-growing segment of the ETF industry. Their ability to provide downside protection, tax efficiency, and structured returns makes them appealing in today’s volatile market.
For content marketers, this trend reinforces the need for education, clarity, and proactive messaging. As the ETF industry continues to push the boundaries of innovation, marketers who can effectively communicate these advancements will be best positioned to engage investors and financial professionals alike.
Wentworth Financial Communications develops content for leading firms across the asset management industry. If you would like to chat about how to apply these mutual fund trends to your marketing strategy, please contact us.
About the Author John Spence leads the ETF content marketing practice at Wentworth Financial Communications. He collaborates with a team of writers and editors at Wentworth to help professionals across the financial services industry build their brands by creating investment-grade infographics, videos, email campaigns, blog posts, social media content, white papers, bylined articles, newsletters, and other forms of content marketing.