Masters in Business

Financial Products for Hedging with Vest Co-Founder Jeff Chang

39 snips
Feb 27, 2026
Jeff Chang, co-founder and president of Vest, builds outcome-focused ETFs that use options to hedge risk. He discusses the founding of Vest, why hedging and buffer ETFs gained traction, and how these products compare with traditional portfolios. He also covers partnerships that enable option-based ETFs and practical uses for advisors.
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INSIGHT

In-Kind Options Enabled Buffer ETFs

  • ETF in-kind creation for options (allowed Oct 2019) unlocked tax-efficient buffered ETFs.
  • Vest launched buffer ETFs in Nov 2019 with First Trust after the in-kind options mechanism became available.
INSIGHT

Buffers Shift Risk Management From Correlation To Hedging

  • A 10% buffer ETF protects first 10% of S&P losses while capping upside, shifting risk management from correlation to explicit hedging.
  • That kept investors less hurt in 2022 and left capital to compound into 2023 gains.
ADVICE

Package Option Hedges Inside Funds For Advisors

  • Put option hedges inside funds to solve advisor compliance and scalability concerns rather than expecting advisors to trade options individually.
  • Vest packages monthly option strategies so advisors can rebalance normally while the fund handles option trading.
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