BufferLABS ETF
Limited Downside Protection Upside Participation Empowered by BufferLABS Buffered ETF Research
METHODOLOGY
The BufferLABS ETF (BFLB) provides hedged US Equity exposure. The strategy seeks to provide asymmetric exposure to US equity market returns, participating in a greater percentage of market rallies than market sell-offs. The fund’s methodology incorporates options contracts to provide exposure to the US equity markets while simultaneously reducing the magnitude of losses associated with market sell-offs. The strategy’s options portfolio structure, commonly referred to as a “put spread collar*,” is like those used by most defined outcome buffer ETFs, but BFLB seeks to improve on the defined outcome approach through active management.
The approach originated from assessing the universe of defined outcome ETFs to manage a portfolio of these ETFs while maintaining a targeted risk profile. We analyzed each ETF’s underlying options holdings characteristics such as delta**, theta**, and gamma** to learn how the ETFs move relative to the US equity market. Out of this research, we developed preferred ranges for the characteristics of the options that constitute a buffer structure we believe is optimal. Rather than buying pre-determined options features (caps and buffers) one year from expiration and holding them to a pre-determined expiration date, BFLB enters positions with a shorter time horizon. Additionally, relative to most buffer ETF offerings, we have wider possible cap and buffer ranges which allows us to maintain our target portfolio characteristics in different market conditions. Our rebalancing activity is based on our proprietary model, which is custom fit to the options parameters we are targeting. These relaxed parameters combined with our proprietary insights into preferred characteristics may result in a portfolio we believe will be attractive to investors interested in buffered ETF offerings. While the options contracts that establish the Buffer provide protection from a certain amount of loss, the options contracts establishing the Buffer do not necessarily protect the Fund or investors from that amount of loss.
WHY PURCHASE THIS ETF?
There are many products available to investors providing US equity exposure with downside protection. We find many of these products, such as structured notes, registered index-linked annuities (RILAs), and defined outcome ETFs, have shortcomings. Moreover, the key shortcomings of defined outcome buffer ETFs this fund seeks to address are: limited upside capture in prolonged bull markets, path-dependent downside protection, and end period focused construction. These factors result in buffer ETF positions that can become misaligned with investor objectives. BFLB differentiates itself through rolling and rebalancing options positions in response to market conditions to target the desired portfolio characteristics. For investors currently using defined outcome ETFs, our fund is designed to reduce the need for active monitoring and trading that can be associated with them.
BFLB offers a dynamic buffer rather than the rigid defined outcome offered by other buffer funds. Rather than holding a defined outcome structure until expiration regardless of market events, BFLB responds to market movement to maintain the target risk level and market-relative participation on the upside and downside. Our active approach is designed to reduce the need to monitor and trade defined outcome ETFs to maintain steady market-relative characteristics. BFLB is well-suited for those whose risk tolerance precludes them from full exposure to raw US equities. We have found that the features of BFLB are aligned with certain pension plan, endowment fund, and insurance fund mandates due to both the risk management and the more frequent rebalancing. Moreover, we find retirees and other investors who prefer lower risk levels appreciate the volatility reduction provided by BFLB. These investors still want to experience the long-term upward drift US equities have typically exhibited historically, but with lower exposure to market selloffs and no burden of actively managing the portfolio themselves.
FUND OBJECTIVE
The BufferLABS US Equity Dynamic Buffer ETF (the “Fund”) seeks to achieve capital appreciation with limited downside protection.
FUND DOCUMENTS
FUND DETAILS
CURRENT NAV AND MARKET PRICE
MONTH-END PERFORMANCE
| Field | Value |
|---|---|
| As of Date | 10/31/2025 |
| Fund Ticker | Type | YTD | 1 Month | 3 Month | 6 Month | 1 Year | 3 Year | 5 Year | 10 Year | Since Inception | As of Date | Inception Date |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BFLB | MKT | 1.03 | 10/31/2025 | 10/07/2025 | ||||||||
| BFLB | NAV | 1.04 | 10/31/2025 | 10/07/2025 |
HISTORICAL PERFORMANCE
| Field | Value |
|---|---|
| As of Date |
| Fund_Ticker | Type | YTD | 1 Month | 3 Month | 6 Month | 1 Year | 3 Year | 5 Year | 10 Year | Since Inception | As of Date | Inception Date |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 10/07/2025 |
The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. The Fund is new and therefore does not have a performance history for a full calendar year as most recent quarter end.
Market price returns are based upon the closing composite market price and do not represent the returns you would receive if you traded shares at other times. Returns are average annualized total returns, except those for periods of less than one year, which are cumulative. YTD is year-to-date and ITD is inception-to-date.
NAV return represents the closing price of the underlying securities.
HISTORICAL PREMIUM / DISCOUNT
The Premium/Discount shows the difference between the daily market price of the Fund’s shares and the Fund’s net asset value (“NAV”). The table shows the premium or discount of the mid-point price as a percentage of the NAV as well as the number of trading days the Fund traded within the given premium/discount range.
COMPLETED CALENDAR QUARTERS OF CURRENT YEAR
| Year | Quarter | Days Traded at Premium | Days Traded at Discount |
|---|---|---|---|
| 0 | 0 | 0 | 0 |
MOST RECENT COMPLETED CALENDAR YEAR
| Days Traded at Premium | Days Traded at Discount |
|---|---|
FUND DISTRIBUTIONS
| Ex_Date | Record_Date | Payable_Date | Income | Short_Term_Capital_Gain | Long_Term_Capital_Gain | Total_Capital_Gain | Total_Distribution |
|---|---|---|---|---|---|---|---|
FUND HOLDINGS
| TICKER | NAME | CUSIP | SHARES | PRICE | Market Value ($mm) | % of NET ASSETS | EFFECTIVE_DATE |
|---|---|---|---|---|---|---|---|
| FGXXX | First American Government Obligations Fund 12/01/2031 | 31846V336 | 257.544 | 100,00 | 0,26 | 0.42 | 12/01/2025 |
| 4SPY 260618C00006690 | SPY 06/18/2026 6.69 C | 911 | 672,36 | 61,25 | 99.72 | 12/01/2025 | |
| 4SPY 260618C00737100 | SPY 06/18/2026 737.1 C | -911 | 12,86 | -1,17 | -1.91 | 12/01/2025 | |
| 4SPY 260618P00588830 | SPY 06/18/2026 588.83 P | -911 | 10,23 | -0,93 | -1.52 | 12/01/2025 | |
| 4SPY 260618P00662430 | SPY 06/18/2026 662.43 P | 911 | 22,49 | 2,05 | 3.34 | 12/01/2025 | |
| Cash&Other | Cash & Other | -34.402 | 1,00 | -0,03 | -0.06 | 12/01/2025 |
| Field | Value |
|---|---|
| As of Date | 12/01/2025 |
Fund holdings are subject to change and are not recommendations to buy or sell any security.