On Monday, AllianzIM rolled out the AllianzIM U.S. Large Cap 6 Month Buffer10 Jun/Dec ETF, the sixth ETF in its family of buffer ETFs that reset every six months, completing the series.
The fund lists on the NYSE Arca with an expense ratio of 0.74%.
A Different Kind of Buffer ETF
Although most buffer ETFs reset after a one-year outcome period, the AllianzIM 6 Month Buffer10 ETFs reset every six months. The six funds are tied to the price performance of the SPDR S&P 500 ETF Trust (SPY ) and protect against the first 10% of downside performance.
SIXD’s current outcome period will end on Nov. 30, 2024, during which it aims to deliver the upside performance of SPY up to a cap of 7.68%.
Like all buffer ETFs, SIXD uses flexible exchange (FLEX) options to execute its strategy rather than holding actual shares of SPY. The protection that such funds offer can be appealing to investors who are nearing a particular investment goal such as retirement and want to reduce their risk exposure.
AllianzIM’s 6 Month Buffer10 ETFs currently have almost $250 million in assets under management. The issuer offers a range of other buffer ETFs and similar products that have combined total assets of more than $2.6 billion.
The largest fund in its lineup is the AllianzIM U.S. Large Cap Buffer 20 Jan ETF (JANW ) with $388 million. Like SIXD, it has SPY as its reference asset; however, it resets annually and protects against the first 20% of downside performance.
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