Summarize and humanize this content to 2000 words in 6 paragraphs in English U.S. outcome exchange-traded funds assets under management will hit $650 billion by 2030—more than triple the $181 billion seen in 2024—according to a new forecast from BlackRock. These ETFs use options strategies to help deliver specific investment goals, such as income and targeted downside protection. Robert Hum, U.S. head of factor and outcome ETFs at BlackRock, told etf.com there are two main factors that went into this prediction: the overall growth of the category historically and the amount of inquiries the firm is seeing around these products. In 2019, less than 1% of advisors were using outcome ETFs, according to BlackRock’s recent report. That figure has since jumped to 10.5%. The average outcome ETF user is allocating 13.2% to their portfolio, up from 8.7% just five years ago. “We think this trend will continue,” Hum said. Outcome ETFs provide advisors with a way to “express their view on the market and fill in the gaps in client portfolios, whether transitioning clients out of cash and back into markets, seeking to mitigate downside risk in choppy markets, or accessing a new source of income to help enhance the yield of clients’ core exposures,” according to BlackRock’s report. For near-retirees and retirees in particular, outcome ETFs can also offer income and help mitigate risks. “Finding unique ways to drive clear and differentiated outcomes is really important,” Hum said. BlackRock’s report says that the ETF wrapper provides a “new, convenient and cost-effective” way for investors to access these options strategies. Options strategies, however, come with complexity. “The industry needs to focus on providing proper education around these products,” Brian Price, managing principal and co-chief investment officer at Commonwealth Financial Network told etf.com. “In particular, I think there are nuances around the effectiveness of the buffers themselves, based on the timing of purchase, that should be well understood before they are utilized in client portfolios.” Permalink | © Copyright 2025 etf.com. All rights reserved
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