Allianz Investment Management LLC (AllianzIM) announced today the launch of its latest series of Buffered ETFs. The September Buffered ETFs series includes two 12-month outcome period ETFs: AllianzIM U.S. Large Cap Buffer10 Sep ETF and the AllianzIM U.S. Large Cap Buffer20 Sep ETF.
This launch completes the series of AllianzIM Buffered ETFs. Caps on these funds will continue to be reset on a monthly basis.
Recent economic data has signaled progress in the fight against inflation, indicating the Federal Reserve may be nearing the end of its rate-hiking cycle. The September Buffered ETFs provide another tool for investors to tap into the momentum in the equity market, while potentially mitigating against uncertainties that persist in the second half of the year.
The ETFs seek a downside buffer of 10% or 20% against market drops, while allowing investors 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|
|SEPT||SPDR S&P 500 ETF Trust (SPY)||10% Gross / 9.26% Net||19.44% Gross / 18.70% Net||1-Sep-23||31-Aug-24|
|AllianzIM U.S. Large Cap Buffer10 Sep ETF|
|SEPW||SPDR S&P 500 ETF Trust (SPY)||20% Gross / 19.26% Net||13.54% Gross / 12.80% Net||1-Sep-23||31-Aug-24|
|AllianzIM U.S. Large Cap Buffer20 Sep ETF|
Maintaining Equity Exposure While Buffering Against Risks
“Investors have been challenged with balancing a recent string of upside economic news with what might be more realistic expectations of a cooling economy in the months ahead” said Johan Grahn, head ETF market strategist at AllianzIM. “Our line of Buffered ETFs offers investors the opportunity to maintain equity exposure while buffering their portfolios against unforeseen risks.”
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 Sept ETF series will be Sept. 1, 2023, to Aug. 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.
“Risk management is the core of what we do at AllianzIM,” said Brian Muench, president of AllianzIM. “With just a few months left in 2023, we stand committed to helping investors more confidently plan for the future. Our growing suite of Buffered ETFs are designed to help investors put their money to work, while hedging against the evolving risks in the market.”
The AllianzIM Buffered ETFs seek to leverage AllianzIM’s core strengths, which include risk management experience and in-house hedging capabilities.