Allianz Investment Management LLC announced the launch of its February series of U.S. large-cap buffered exchange traded funds. The series includes two ETFs with a 12-month outcome period: the AllianzIM U.S. Large Cap Buffer10 Feb ETF and the AllianzIM U.S. Large Cap Buffer20 Feb ETF.
The February series is the latest expansion of AllianzIM’s U.S. Large Cap Buffered ETFs, offering investment professionals and investors access to new risk mitigation strategies as market uncertainty persists and fears of a recession mount in 2023. The ETF suite is designed to provide a downside buffer of 10% or 20% against market drops, while allowing investors the opportunity to participate in the upside potential of the SPDR S&P 500 ETF Trust up to a stated cap.
| Ticker | Reference Asset | Buffer | Cap | Outcome Period Start Date | Outcome Period End Date |
|---|---|---|---|---|---|
| FEBT AllianzIM U.S. Large Cap Buffer10 Feb ETF | SPDR S&P 500 ETF Trust | 10.00% Gross/9.26% Net | 19.79% Gross/19.05% Net | Feb. 1, 2023 | Jan. 31, 2024 |
| FEBW AllianzIM U.S. Large Cap Buffer20 Feb ETF | SPDR S&P 500 ETF Trust | 20.00% Gross/19.26% Net | 13.24% Gross/12.50% Net | Feb. 1, 2023 | Jan. 31, 2024 |
“Our Buffered ETFs make it easier for investors sitting on cash to get back into the market without jumping headfirst into the deep end,” said Johan Grahn, head ETF market strategist at AllianzIM. “Investors that are concerned about down-side risk in the U.S. equity market have an opportunity to add a Buffered ETF allocation to their portfolios to provide explicit risk mitigation of either 10% or 20% while still participating in US equity returns up to a cap if things turn out better than they expected.”
Offered at an expense ratio of 74 basis points, AllianzIM’s extensive suite of Buffered ETFs is offered with six- and 12-month outcome periods. The 12-month outcome period of the February series ETFs will be February 1, 2023, to January 31, 2024. Each outcome period reflects a new stated cap commensurate with prevailing market conditions, allowing investors to remain invested with a level of risk mitigation.
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