Allianz Investment Management (AllianzIM) announced the launch of two new buffered ETFs with a 12-month outcome period: the AllianzIM U.S. Large Cap Buffer10 Mar ETF (MART ) and the AllianzIM U.S. Large Cap Buffer20 Mar ETF (MARW ).
As the latest additions to AllianzIM’s suite of U.S. large-cap buffered ETFs, MART and MARW provide investors access to versatile risk mitigation strategies amid shifting market and economic conditions. The ETFs seek to offer 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 | Buffer1 | Cap1 | Outcome Period Start Date | Outcome Period End Date |
|---|---|---|---|---|---|
| MART | SPDR S&P 500 ETF Trust | 10% Gross / 9.26% Net | 20.39% Gross / 19.65% Net | Mar. 1, 2023 | Feb. 29, 2024 |
| AllianzIM U.S. Large Cap Buffer10 Mar ETF | |||||
| MARW | SPDR S&P 500 ETF Trust | 20% Gross / 19.26% Net | 14.01% Gross / 13.27% Net | Mar. 1, 2023 | Feb. 29, 2024 |
| AllianzIM U.S. Large Cap Buffer20 Mar ETF |
“Advisors continue to find defined outcome strategies appealing in 2023, as the market volatility is easier to manage with strategies that both protect the downside and give some upside participation,” said Todd Rosenbluth, head of research at VettaFi.
According to Allianz Life’s Q4 Quarterly Market Perceptions study, the vast majority of Americans (77%) say they think the market will continue to be very volatile in 2023. To help ease the minds of concerned investors, AllianzIM remains committed to providing investors with more avenues to seek risk mitigation amid inflation and turbulent markets.
“As inflation continues to threaten people’s financial security, our Buffered ETFs provide investors with the opportunity to benefit from market gains while helping mitigate the risk of major losses," said Johan Grahn, head ETF market strategist at AllianzIM. “Through these cost-effective and accessible products, we are helping people stay invested even in times of economic uncertainty.”
Offered at an expense ratio of 74 basis points, AllianzIM’s suite of buffered ETFs is offered with six- and 12-month outcome periods. The 12-month outcome period of the March series ETFs will be March 1, 2023, to February 29, 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.
“Our ETFs provide advisors and their clients enhanced access to solutions that can help address the risk associated with volatile markets,” said Brian Muench, president of AllianzIM. “While 2023 is off to a better start in equity markets than 2022, we know a wide range of uncertainties may threaten investment returns in the months ahead. The AllianzIM team strives to offer consistent strategies to help weather market shifts.”
The AllianzIM Buffered ETFs seek to leverage AllianzIM’s core strengths, which include risk management experience and in-house hedging capabilities.
For more news, information, and analysis, visit VettaFi | ETFDB.
