BlackRock’s Amped Up ETF Taps Into Wall Street’s Stock Anxiety

BlackRock Inc. is tapping into a fast-growing corner of the options-powered ETF world with an offering aimed at Wall Street investors bracing for the S&P 500 to tread water.

The iShares Large Cap Accelerated ETF (ticker TWOX) launched Thursday. If stocks notch a gain over the quarter the ETF will offer double the gains of BlackRock’s S&P 500 tracking fund (IVV) — but for the current period those returns are capped at 5.82% after fees. That limit will reset quarterly based on pricing in the options market and, in the event of a selloff, the fund comes ...