Columbia Threadneedle Launches Two Laddered Buffer ETFs (RECD, RECM)

Columbia Threadneedle has launched two actively managed ETFs, the Columbia RECS Laddered Deep Buffer ETF (RECD) and Columbia RECS Laddered Moderate Buffer ETF (RECM), combining U.S. equity exposure with options-based downside protection. Both funds invest in large- and mid-cap stocks aligned with the Beta Advantage Research Enhanced U.S. Equity Index, while using staggered one-year put options on the S&P 500, with approximately 25% of the protection rolling quarterly. RECD seeks to protect against market declines exceeding 15%, while RECM targets losses between 2% and 15%, leaving investors exposed to the first 2% and losses beyond 15%. Both strategies sell short-dated call options to help finance downside protection, potentially limiting upside participation. Unlike defined-outcome ETFs, neither guarantees a specific buffer, with protection varying based on market conditions, timing, and fees.