What are some common misconceptions about buffered ETFs like ARK DIET?

Investors sometimes confuse buffered ETFs with products that offer guaranteed returns or complete downside protection. Here are a few important points to keep in mind:

• The buffer doesn’t eliminate all losses, it only reduces them by the stated amount (for ARK DIET, 50% of a decline in the reference asset during the outcome period).
• Returns are not guaranteed, outcomes still depend on the performance of the reference asset, market conditions, and time remaining in the outcome period.
• The “no cap” structure doesn’t mean unlimited upside, you still only participate in gains after the hurdle and at the stated participation rate.
• You don’t have to hold for 12 months, but the defined outcome is only designed for those who hold from the start to the end of the outcome period. Selling early can produce results outside the defined range.
• Quarterly launches are not quarterly lockups, you can buy or sell any DIET ETF on any trading day, regardless of when it launched.