BlackRock launches two ETFs with protection against falls for European investors
6 OCT, 2025
By Joanna Piwko from RankiaPro Europe
BlackRock has announced the launch of two new active "buffer" type ETFs, a further step in its goal of making outcome-oriented investment strategies accessible to a broader audience. These funds offer exposure to the S&P 500 index, using options to provide specific protection against market downturns, in exchange for limiting the upside potential.
The launch of these ETFs responds to a growing demand for strategies that help investors navigate an uncertain macroeconomic environment with more predictable outcomes. According to the BlackRock Investment Institute, capital preservation in volatile markets requires tactical approaches that actively mitigate downside risks. As global demographic dynamics change and investors face new market challenges, interest grows in tools that balance equity participation with protection against losses.
New ETFs
The Outcome ETFs allow achieving this balance by offering exposure to growth assets, while incorporating protection mechanisms that reduce the impact of downturns. Thus, they help investors stay invested during episodes of high volatility, avoiding premature market exits.
- iShares US Large Cap Max Buffer Sep UCITS ETF USD (Acc) seeks to offer up to 100% protection against downturns during an annual reference period.
- iShares US Large Cap Deep Buffer UCITS ETF USD (Acc) offers protection that resets quarterly, with a range between -5% and -20%, aimed at investors who prefer more frequent adjustments in line with short-term market developments.
At the end of each outcome period, both the return limit (cap) and the protection (buffer) are automatically readjusted, offering a new framework for managing risks and potential returns.
These new Buffer ETFs leverage BlackRock's expertise in markets and trading, combining total return swaps with listed options to implement the defined outcome strategy in a precise and robust way. By integrating these option strategies within ETFs, BlackRock makes sophisticated approaches more accessible and scalable, expanding access to strategies that were traditionally offered through structured products. The Outcome ETFs thus allow access to risk management techniques typical of the institutional sphere, with the efficiency, transparency, and convenience of the ETF format.
The Outcome ETFs are powerful tools in the current environment, as they offer clarity and confidence in the way investors can pursue their goals. By expanding access to these strategies in Europe, we help investors face the dual challenge of seeking growth and managing risk in an increasingly unpredictable world.
Manuela Sperandeo, Co-Head of iShares Europe at BlackRock
