iShares US Large Cap Moderate Buffer UCITS ETF
| Issuer: iShares |
| Asset Class: Equity |
| TER: 50bps |
| Trading Currency: GBP |
| Pays Income: False |
| Listing Date: 07 Apr 2026 |
| Ticker: TENM |
| ISIN: IE000AY2ERH5 |
This actively managed fund offers a unique approach to investing in the U.S. large-cap equity market by providing a defined outcome. The core objective is to deliver a pre-determined level of return while offering a buffer against a specific amount of downside loss in the S&P 500 Price Index over a set outcome period, typically one year. This structure is designed for investors who desire participation in stock market gains but are cautious about potential downturns and are willing to accept a cap on their potential upside in exchange for downside protection. The strategy does not aim to track or outperform a benchmark in a traditional sense; instead, it seeks to deliver a specific, pre-set risk-return profile.
The fund achieves its investment objective by holding a portfolio of Flexible Exchange® (FLEX) Options on the S&P 500 Price Index. This derivatives-based strategy allows for the creation of the defined upside cap and downside buffer. The specific levels of the cap and buffer are established at the beginning of each outcome period and can change based on prevailing market conditions, including interest rates and volatility. It is crucial for investors to understand that the buffer is not absolute protection; if the underlying index declines by more than the buffer percentage, the investment will experience losses beyond that point. Furthermore, the defined outcome is only realized for those who hold shares for the entire duration of the outcome period.
This investment solution is well-suited for individuals with a moderate risk appetite who are looking for a more predictable equity investing experience. It can serve as a core holding for managing volatility or as a tactical position during times of market uncertainty. By providing clear parameters for potential gains and losses, it helps investors navigate the equity markets with a greater sense of clarity, though they must be comfortable with forgoing any returns that exceed the established cap during strong bull markets.
The fund achieves its investment objective by holding a portfolio of Flexible Exchange® (FLEX) Options on the S&P 500 Price Index. This derivatives-based strategy allows for the creation of the defined upside cap and downside buffer. The specific levels of the cap and buffer are established at the beginning of each outcome period and can change based on prevailing market conditions, including interest rates and volatility. It is crucial for investors to understand that the buffer is not absolute protection; if the underlying index declines by more than the buffer percentage, the investment will experience losses beyond that point. Furthermore, the defined outcome is only realized for those who hold shares for the entire duration of the outcome period.
This investment solution is well-suited for individuals with a moderate risk appetite who are looking for a more predictable equity investing experience. It can serve as a core holding for managing volatility or as a tactical position during times of market uncertainty. By providing clear parameters for potential gains and losses, it helps investors navigate the equity markets with a greater sense of clarity, though they must be comfortable with forgoing any returns that exceed the established cap during strong bull markets.
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