BlackRock’s Amped Up ETF Faucets Into Wall Road’s Inventory Nervousness

BlackRock Inc. is tapping right into a fast-growing nook of the options-powered ETF world with an providing geared toward Wall Road buyers bracing for the S&P 500 to tread water.

The iShares Giant Cap Accelerated ETF (ticker TWOX) launched Thursday. If shares notch a acquire over the quarter the ETF will supply double the good points of BlackRock’s S&P 500 monitoring fund (IVV) — however for the present interval these returns are capped at 5.82% after charges. That restrict will reset quarterly based mostly on pricing within the choices market and, within the occasion of a selloff, the fund comes with no hedges towards losses.