Allianz Investment Management announced the launch of its December series of U.S. large-cap buffered exchange traded funds. The December series includes two ETFs with a 12-month outcome period: the AllianzIM U.S. Large Cap Buffer10 Dec ETF (NYSE Arca: DECT) and the AllianzIM U.S. Large Cap Buffer20 Dec ETF (NYSE Arca: DECW).
The December series is the latest expansion of AllianzIM’s new suite of monthly U.S. Large Cap Buffered ETFs, which debuted in November. As markets remain volatile heading into the end of the year as a result of the Fed’s ongoing commitment to bringing down inflation, the demand for risk mitigation solutions remains high. The December series ETFs seek to match the share price returns of the SPDR S&P 500 ETF Trust up to a stated cap, while providing downside risk mitigation through a buffer against the first 10% or 20% of SPDR S&P 500 ETF Trust losses.
|Ticker||Reference Asset||Buffer1||Cap1||Outcome Period Start Date||Outcome Period End Date|
AllianzIM U.S. Large Cap Buffer10 Dec ETF
|SPDR S&P 500 ETF Trust||10% Gross / 9.26% Net||23.61% Gross / 22.87% Net||Dec. 1, 2022||Nov. 30, 2023|
AllianzIM U.S. Large Cap Buffer20 Dec ETF
|SPDR S&P 500 ETF Trust||20% Gross / 19.26% Net||15.59% Gross / 14.85% Net||Dec. 1, 2022||Nov. 30, 2023|
1 Gross reflects the Cap and Buffer prior to taking into account the 0.74% expense ratio of the ETF while Net accounts for the expense ratio, but does not include brokerage commissions, trading fees, taxes and non-routine or extraordinary expenses. The Cap and Buffer experienced by investors may be different than the stated numbers. The funds’ website, at www.allianzimetfs.com, provides important fund information as well as information relating to the potential outcomes of an investment in the fund on a daily basis.
“With interest rates still rising and fears of an economic slowdown mounting, our new monthly series of Buffered ETFs give investors expanded access to versatile risk mitigation tools,” said Johan Grahn, head of ETFs at AllianzIM, in a news release. “Despite ongoing market volatility, Buffered ETFs allow investors to take cash off the sidelines yet stay invested in the markets.”
Offered at an expense ratio of 74 basis points, AllianzIM’s suite of Buffered ETFs with six- and 12-month outcome periods provides the opportunity for investors to invest in ETFs with new caps every month. The 12-month outcome period of the December series ETFs will be December 1, 2022, to November 30, 2023. Each outcome period reflects a new stated cap commensurate with prevailing market conditions, allowing investors to remain invested with a level of risk mitigation.
“With 2023 just around the corner, our goal is to give investors the tools needed to navigate the unknowns in the market,” added Brian Muench, president of AllianzIM. “After observing the turbulence in markets this part year, we’re eager to meet the growing demand from advisors and investors for additional risk mitigation strategies.”