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  5. MISC: Hearing the "options based ETF" category as a means of hedging against equity risk. [Miscellaneous]
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Q: Hearing the "options based ETF" category as a means of hedging against equity risk. Could you provide some comment and any specific favourites. Thanks.
Asked by Ken on January 14, 2026
5i Research Answer:

There is a proliferation of ETFs with option strategies. Most of these don't necessarily provide protection but maybe transform the returns a bit (tilt more toward income streams vs capital gains for example). 

Buffer ETFs are also becoming more popular where they provide protection in certain scenarios but we aren't big fans of these types of strategies as they can typically be replicated at lower cost or are typically not favourable from a fee structure.