If it's true that the psychological pain of losing money is twice as great as the pleasure you feel when you make a profit, then there's an exchange-traded fund (ETF) for that. A newer class of ETFs, called defined-outcome or buffered ETFs, limit your losses in the stock market in exchange for giving up some of your potential gains.
And these funds are growing in popularity. The first defined-outcome ETF launched in 2018. Today, there are more than 200 funds, with $43 billion in assets under management, according to ETF.com.
