Allianz Investment Management launched its latest series of Buffered ETFs. The June Buffered ETFs series includes two 12-month outcome period ETFs: AllianzIM U.S. Large Cap Buffer10 Jun ETF and the AllianzIM U.S. Large Cap Buffer20 Jun ETF.
Investors are struggling to navigate today’s volatile markets. AllianzIM Buffered ETFs can help investors balance the risk and reward of investing in equity markets. The ETFs 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.
“We continue to see advisors focus on downside protection with their equity exposure,” said Todd Rosenbluth, head of research at VettaFi. “The more easy to use, tax efficient ETF offerings for them to choose from, the better.”
| Ticker | Reference Asset | Buffer | Cap | Outcome Period Start Date | Outcome Period End Date |
|---|---|---|---|---|---|
| JUNT | SPDR S&P 500 ETF Trust | 10% Gross / 9.26% Net | 19.73% Gross / 18.99% Net | 1-Jun-23 | 31-May-24 |
| AllianzIM U.S. Large Cap Buffer10 Jun ETF | |||||
| JUNW | SPDR S&P 500 ETF Trust | 20% Gross / 19.26% Net | 13.27% Gross / 12.53% Net | 1-Jun-23 | 31-May-24 |
| AllianzIM U.S. Large Cap Buffer20 Jun ETF |
Offering Downside Mitigation
“As market volatility and economic uncertainty persist in 2023, our research shows that investors want a reliable strategy that can offer downside mitigation against a potential bear market while still providing growth opportunities,” said Johan Grahn, head ETF market strategist at AllianzIM. “We believe our Buffered ETFs provide just that: a unique balance between risk mitigation and growth appreciation in the equity markets.”
Offered at an expense ratio of 74 basis points, AllianzIM’s Buffered ETFs are offered with six- and 12-month Outcome Periods. The 12-month Outcome Period of the June ETF series will be June 1, 2023, to May 31, 2024. Each Outcome Period reflects a new stated Cap in proportion with prevailing market conditions. This allows investors to stay invested with a level of risk mitigation.
“At AllianzIM, we believe investors should have the tools to navigate and invest in any market environment,” added Brian Muench, president of AllianzIM. “The introduction of this latest series of ETFs showcases our commitment to helping investors achieve their long-term financial goals with innovative investment solutions.”
For more news, information, and analysis, visit VettaFi | ETFDB.
