Defined Outcome Dynamics: First Trust Dominates Amid $222M Weekly Inflows

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Macro Summary

The Buffer ETF landscape currently commands $80.94 billion in assets under management across 457 individual ETFs and 20 distinct brands. For the week ending January 2, the channel recorded net inflows of $222 million, bringing the total year-to-date flows to $94 million.

Over the past rolling year, the channel has attracted a staggering $14.80 billion in net new money, underscoring the sustained trend of advisor adoption for defined-outcome strategies. Innovation remains a high priority for issuers, as evidenced by the launch of 23 new ETFs over the last three months alone.

Performance

Performance within the Buffer category remains idiosyncratic, largely dictated by the underlying security and the specific outcome period’s cap and floor structure. This past week, the Equity: Region – Asia-Pacific Emerging category led all segments with a Week-to-Date (WTD) return of 3.01%, followed closely by Digital Asset: Cryptocurrency – Bitcoin at 2.64%. Conversely, the Commodity: Focused – Precious Metals category was the weakest performer, shedding -6.03% WTD.

For a deeper dive into how individual funds are tracking relative to their caps, we encourage readers to download the full, free performance report in the right-side panel.

Flows

Equity-focused Buffer ETFs remain the primary driver of channel growth, accounting for $196 million of this week’s total inflows. The Laddered outcome period was the most active implementation style with $94 million in net new money, while the BUFR led all individual funds with a weekly haul of $50 million.

Flows by Asset Class

Asset Class # of Funds AUM WTD Flow 1M Flow 3M Flow YTD Flow 1Y Flow
Buffer – Equity 417 $80,045M $196M $1,179M $3,863M $67M $14,364M
Buffer Synthetic Income 18 $604M $28M $42M $73M $28M $257M
Buffer – Commodity 1 $53M $3M $7M $5M $0M $5M
Buffer – Crypto 19 $205M -$4M $20M $49M -$1M $188M
Buffer – Fixed Income 2 $33M $0M -$2M -$16M $0M -$17M

Flows by Implementation (Outcome Period)

Implementation WTD Flow 1M Flow 3M Flow YTD Flow 1Y Flow
Inflows
Buffer Reset: Laddered $94M $399M $965M $34M $3,162M
Buffer Reset: December $69M $843M $430M $16M $442M
Buffer Reset: Quarterly $44M $80M $800M $7M $2,819M
Outflows
Buffer Reset: February -$23M -$118M -$349M $0M $796M
Buffer Reset: August -$19M -$58M -$118M -$22M $456M
Buffer Reset: April -$10M -$6M -$60M -$7M $379M

Individual Fund Flows (WTD)

Ticker Fund Name WTD Flow
Top 5 Inflows
BUFR FT Vest Laddered Buffer ETF $50M
SBAR Simplify Barrier Income ETF $27M
DDEC FT Vest US Equity Deep Buffer ETF – December $21M
PJAN Innovator U.S. Equity Power Buffer ETF – January $21M
BUFC AB Conservative Buffer ETF $13M
Top 5 Outflows
PAUG Innovator U.S. Equity Power Buffer ETF – August -$21M
PFEB Innovator U.S. Equity Power Buffer ETF – February -$16M
EAPR Innovator Emerging Markets Power Buffer ETF – April -$4M
PNOV Innovator U.S. Equity Power Buffer ETF – November -$4M
TENM iShares Large Cap 10% Target Buffer Mar ETF -$4M

League Tables

The Buffer ETF market remains dominated by two major players, FT Vest and Innovator, which together account for roughly 86% of the channel’s total AUM. This week, FT Vest further solidified its lead with $169 million in weekly flows, while Innovator saw a slight net outflow of -$20 million.

Top 5 Issuers by AUM

Issuer # of ETFs AUM Market Share
FT Vest 115 $39.68B 49.02%
Innovator 154 $29.83B 36.86%
Allianz 49 $4.97B 6.14%
AB Funds 3 $1.36B 1.68%
Pacer 13 $1.24B 1.54%

Issuer Flows (WTD)

Issuer WTD Flow 1M Flow 3M Flow YTD Flow 1Y Flow
Inflows
FT Vest $169M $746M $1,650M $40M $5,630M
Simplify $28M $43M $70M $30M $250M
Allianz $14M $58M $100M $10M $1,230M
Outflows
Innovator -$20M $128M $1,240M $10M $5,210M
Calamos -$2M $27M $10M $0M $280M
KraneShares $0M $0M $0M $0M $0M

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Disclosures

This material is for informational purposes only and should not be considered investment advice. All investments, including ETFs, involve risk, including the possible loss of principal. Investors should consider their investment objectives, risks, charges, and expenses carefully before investing.

This analysis was developed by the team at ETF Action. We leverage advanced AI tools to assist in the drafting and refinement of our content, based on our expert prompts, direction, and final review.