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Buying put options to insure a portfolio against a market crash feels like the prudent thing to do. But new research covering more than two centuries of market history finds that portfolio insurance loses money over time — and that it fails in exactly the slow, grinding bear markets that do investors the most harm. People insure almost everything they value. Homes, cars, phones, even pets: paying a modest premium to guard against a loss you would rather not face is one of the

Buffer ETFs are designed to limit stock market losses over a set period, usually in exchange for capping potential gains. Now becoming available to UK investors, these downside protection ETFs use options to cushion falls in markets such as the S&P five hundred. This article explains how buffer ETFs work, what they cost, and whether the trade-offs are worth it for long-term investors.

Active fund managers claim they earn their fees when markets fall. New Morningstar research spanning 26 years tests this claim. The findings: active funds in downturns do outperform more often, but markets rise 80% of the time, swamping any advantage. When COVID and 2022 stress-tested the theory, most active managers failed to protect investors. The promised shelter turns out to be little more than a coin flip.