Tesla hedging: New ETF gears up to attract hesitant investors

(CNBC) Risk-averse investors have a new option to make safer bets on Tesla. Innovator ETFs launched the Innovator Hedged TSLA Strategy ETF (TSLH) – among other defined outcome products – last month. According to the ETF’s CEO Bruce Bond, it gives investors exposure to the stock while largely steering clear of volatility and valuation risks by design. It’s a buffered ETF using a risk reversal strategy to minimize downside while also putting a cap on gains. “You buy TSLH, hedge Tesla, you get basically 10% on the upside, and you have a 10% floor.”

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