VistaShares has launched two ETFs designed to rework the traditional buffered ETF structure — the VistaShares Shield S&P 500 Enhanced Protection ETF (NASDAQ:VOOB) and VistaShares Shield Nasdaq-100 Enhanced Protection ETF (NASDAQ:QQQB).

The actively managed funds seek an 8% buffer each month while also preserving against 50% of losses occurring after the initial 8% decline. Unlike traditional defined-outcome ETFs, the funds have no stated upside cap or fixed annual outcome period.

VOOB and QQQB use options to gain exposure to the S&P 500 and Nasdaq-100, respectively. The funds hold cash and short-term U.S. Treasuries and generally rebalance their options positions monthly, creating a continuous vehicle through a single ticker for each index exposure.

QUICK CONTEXT: VistaShares Targets Buffered ETF Complexity

Traditional buffered ETFs typically offer protection against a predefined portion of losses in exchange for a cap on potential gains. Investors also need to consider the fund’s outcome period and how much protection and upside remain when entering after a series has started. VistaShares designed its Shield ETFs to address those constraints through a continuous structure.

The new funds sell out-of-the-money put options and use the premiums, along with interest earned on cash investments, to purchase roughly one-month at-the-money call options tied to ETFs tracking their respective indexes. The strategy is actively managed and generally rebalanced monthly as options approach expiration.

VistaShares describes the structure as its "Better Buffer," positioning the single-ticker, continuous approach as an alternative to the monthly series commonly used across the buffered ETF market.

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