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How does a buffered ETF fit within your ETF portfolio? Is it either/or?​

A buffered ETF, like ARK’s DIET ETFs, is designed to be a complement, not a replacement, for an existing ETF portfolio—especially if you already own other ARK funds like ARKK – the ARK Innovation ETF.

Think of it this way: 

  • Traditional ETFs like ARKK give an investor full exposure to market upside and downside. They are ideal for investors with high risk tolerance and long time horizons. 
  • Buffered ETFs offer a way to stay invested in the same themes—like innovation and technology—but with reduced risk and a more predictable outcome over a 12-month period. 

So, it’s not a matter of either/or. Many investors might: 

  • Keep some money in traditional ARK ETFs to maximize long-term growth potential. 
  • Use buffered ETFs like ARK DIET to smooth out volatility or protect capital during uncertain market conditions. 
  • Shift between the two based on life stage, market views, or financial goals. 

    For example, if an investor is planning to use the money within a few years or if they're nervous about market swings, a buffered ETF like ARK DIET lets them stay aligned with ARK’s innovation themes—while giving more control over risk.