BlackRock launches stock ETF MAXJ with 100% downside hedge . Good investment?

- BlackRock has launched a new stock ETF called MAXJ - MAXJ offers a 100% downside hedge to investors - It appeals to investors worried about potential market downturns - Buffer ETFs maximize returns while providing downside protection - MAXJ started trading under the ticker symbol 'MAXJ' - BlackRock has launched a 'buffer' exchange-traded fund that offers a 100% downside hedge for risk-shy investors looking to tap into equity markets. - The ETF provides downside protection over a specific period and is designed to appeal to investors concerned about a slowing economy and higher interest rates affecting market sentiment. - This novel product, iShares Large Cap Max Buffer Jun ETF, started trading under the ticker symbol 'MAXJ'. - BlackRock manages $25 billion in assets under management across more than 40 active ETFs in the United States as of June 30.

🚨 Reddit sentiment: mixed/negative - While some users see $MAXJ as a useful product for specific scenarios like retirement, most comments point out the limitations and compare it unfavorably to other investment options like Treasuries or the SP500. Summarized comments: - Some users believe $MAXJ is not a great trade compared to risk-free investments like Treasuries which guarantee a 5% return - $MAXJ's downside hedge funded by selling a call that caps gains at ~10% doesn't seem very exciting to some users - Some users are highlighting the historical returns of SP500, which greatly outperform what $MAXJ would offer - Some users acknowledge that $MAXJ could make sense for those approaching or in retirement who can't handle any drawdowns - The product is seen by some as a cheaper indexed annuity without insurance protection but with full liquidity - Some users see the benefit of $MAXJ as offering a fixed-income return profile with capital gains tax treatment - $MAXJ might outperform money markets over a 10-year cycle but wouldn't be a replacement for equities - Several users find $MAXJ unappealing compared to other investment options like Treasuries - Comparisons to other hedging products like PPUT, but with a different execution Stock tickers discussed: $MAXJ, $SPY