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MAXJ utilizes a defined outcome strategy on the iShares Core S&P 500 ETF (IVV). It aims to provide long exposure to US large-cap stocks, up to an approximate upside limit, while fully hedging downside risk over a one-year period. The fund primarily invests in IVV and options, including FLEX and listed options that reference the underlying ETF. Though the fund typically seeks to hedge against approximately 100% of IVVs losses, this may be reduced to establish a minimum cap of 2%. The upside cap and downside buffer reset every year, at the end of each June. The specific defined outcome pursued…
Is MAXJ's expense ratio expensive, average, or a steal for its category?
Pro reveals the verdict on a 5-tier spectrum calibrated against ICI 2025 industry averages, with strategy-aware bands so the comparison is meaningful.
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Buffer exchange-traded funds (ETFs) are an intriguing investment instrument that's grown in popularity of late.
Buffer ETFs like the iShares Large Cap Max Buffer June ETF offer investors downside protection and modest upside exposure. The MAXJ ETF uses options to achieve its objective and must be held for the entire "outcome period", typically 1 year, to realize the full benefit of the fund's options. However, with the IVV appreciating considerably since June, I would recommend investors consider the SMAX ETF, which is closer to its hedge level with more upside appreciation room.