New Autocallable ETFs Launch as Demand for Income-Generating Products Rises
Two new autocallable ETFs, the Pacer Metaurus High Income (ACBH) and Enhanced Core Income (ACBE), were launched last week. These are part of a growing trend in structured note-based ETF products aimed at investors seeking higher income than traditional fixed-income options like Treasurys. Autocallable ETFs offer varying levels of principal protection, with ACBH using 70% coupon and maturity barriers while ACBE protects against up to a 50% decline. These funds are linked to the Metaurus US Large Cap VolPath Index and include features such as income withholding if index thresholds are breached. Other firms like ProShares and Rex Shares have also entered this space with their own autocallable ETFs, indicating broader industry interest in these products. Analysts suggest that while still relatively new, these funds provide a competitive edge for smaller issuers by offering differentiated strategies to meet investor demand.
Tickers: $ACBE $ACBH $ACQQ $ACRT $ACSP $DACL
Topics: autocallable products ETFs income strategies structured notes