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Black-Swan ETFs Are Facing Their Own Doomsday After a 99% Plunge

Stock rebound deals hit to funds set up to profit on calamity
Big losses pile up as economy, markets defy once-dour outlook

February 16, 2024 at 4:53 PM EST

Exchange-traded funds set up to profit from a Wall Street doomsday are facing their own sort of apocalypse.

The surprisingly resilient US economy and record-setting stock market have delivered massive losses to a breed of ETFs designed to withstand so-called Black Swan events — or unexpected calamities, like the 2008 credit crash, that drive markets into a tailspin.

Markets articles