ProShares Russell 2000 Dynamic Buffer ETF (RB)

The ProShares Russell 2000 Dynamic Buffer ETF (RB) is an exchange-traded fund from ProShares that provides exposure to the Russell 2000 Index of U.S. small-cap stocks while using options to soften losses during market declines.

Unlike traditional buffer funds that lock in a fixed outcome period, the dynamic buffer approach maintains protection on a rolling basis, regularly purchasing put options or put spreads so that a layer of downside protection is continuously in place. The cost of this hedging, partly offset in some designs by selling options, means the fund may lag the index when small-cap stocks rise.