On Friday, AllianzIM rolled out the AllianzIM U.S. Large Cap 6 Month Buffer10 Mar/Sep ETF (NYSE Arca: SIXP), the fourth fund in its family of buffer ETFs that reset every six months.
“The addition of these new ETFs is a strategic response to the preference for shorter, more flexible investment cycles in today’s fast-paced market. This expansion of our six-month outcome period suite empowers investors with more frequent adjustments, aligning with dynamic market conditions and enhancing their ability to navigate uncertainty with greater confidence,” said AllianzIM Head ETF Market Strategist Johan Grahn.
SIXP has a net expense ratio of 0.74%. The fund seeks to match the share price returns of the SPDR S&P 500 ETF Trust (SPY). Like other defined outcome funds, SIXP primarily holds positions in flexible exchange options (FLEX) linked to SPY in order to achieve its objective.
Before expenses are applied, SIXP has a return cap of 7.98% and a downside buffer of 10%. Investors may see these outcomes only if they hold the shares throughout the entire outcome period. The fund will reset its cap and buffer in six months on September 1, 2025, after the conclusion of its outcome period. Future outcome periods will run from September through February, then back to March through August.
A document on the Allianz website details the advantages of a six-month outcome period, including upside caps that are more relevant to what’s going on in the markets and more effective downside protection, applying that 10% buffer to a shorter time period than the usual annual reset.
Allianz currently has more than 25 ETFs listed in the U.S., representing over $2 billion in assets under management. Its offering includes four other buffer funds tied to the performance of SPY that reset semiannually, with only the May/November and June/December funds left to launch.
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