BlackRock Launches Two Buffer ETFs on LSE, Targeting Downside Protection for S&P 500 Exposure

The iShares US Large Cap Moderate Buffer Dec UCITS ETF and iShares US Large Cap Max Buffer Dec UCITS ETF began trading on January 6, 2026.

The funds, which track the S&P 500 Index, use options strategies to create defined outcome periods of one year. Each employs a different protection mechanism: the Moderate Buffer ETF targets approximately 10% downside protection, while the Max Buffer ETF aims for roughly 100% protection against negative performance.

Both ETFs carry a 0.50% total expense ratio and use accumulating share structures. The Moderate Buffer ETF trades under ticker TEND with ISIN IE000Z5YU8X3, while the Max Buffer ETF trades as MAXD with ISIN IE000Y1595P8.

The Moderate Buffer ETF seeks to reflect the price return of US large-cap equities up to an approximate cap on positive performance, while providing a partial buffer against losses. Investors must hold shares for the entire one-year outcome period to benefit from the intended protection level. The fund uses total return swaps and listed options to implement its strategy.

The Max Buffer ETF offers more comprehensive protection, aiming to shield investors from approximately 100% of the index’s downside performance when held for the full outcome period. Like its moderate counterpart, it caps upside participation in exchange for this enhanced protection. The fund had approximately $14.9 million in assets as of January 7, with 3 million shares outstanding.

These actively managed funds reset their protection levels and upside caps annually. BlackRock emphasizes that investors who buy or sell shares mid-period may experience results that differ significantly from the funds’ stated objectives. The products use derivatives extensively, including total return swaps and options, which introduces additional risks beyond direct equity exposure.

The launch follows BlackRock’s expansion of its buffer ETF range in Europe, responding to investor demand for structured equity exposure with defined risk parameters. Both funds are domiciled in Ireland and available to UK investors through the London Stock Exchange.