In a market environment with record-high stock prices and record-low interest rates, investor portfolios that track a traditional mix of equities and fixed income assets face increased risks. Financial advisors have a number of alternative investment tools at their disposal to better-manage these rising risks.
In the upcoming webcast, Buffered Outcome ETFs: Beyond One-Size-Fits-All Risk Mitigation, Brendan Cavanaugh, ETF product specialist at Allianz Investment Management LLC; and Stephen Blumenthal, executive chairman and chief investment officer at CMG Capital Management Group, will highlight the benefits of the buffered outcome ETF strategies that are designed to perform across a wide range of market scenarios.
Specifically, Allianz has released a suite of buffered outcome ETFs designed to expand the risk management solutions available to investors. The lowest-cost buffered outcome ETFs on the market seek to match the returns of the S&P 500 Price Return Index up to a stated cap, while providing a level of risk mitigation through a buffer against the first 10% and 20% of S&P 500 Price Return Index losses. The suite includes:
- AllianzIM U.S. Large Cap Buffer10 Jan ETF (AZAJ)
- AllianzIM U.S. Large Cap Buffer20 Jan ETF (AZBJ)
- AllianzIM U.S. Large Cap Buffer10 Apr ETF (AZAA)
- AllianzIM U.S. Large Cap Buffer20 Apr ETF (AZBA)
- AllianzIM U.S. Large Cap Buffer10 Jul ETF (AZAL)
- AllianzIM U.S. Large Cap Buffer20 Jul ETF (AZBL)
- AllianzIM U.S. Large Cap Buffer10 Oct ETF (AZAO)
- AllianzIM U.S. Large Cap Buffer20 Oct ETF (AZBO)
The ETFs follow a 12-month outcome period. Each outcome period reflects a new stated cap commensurate with prevailing market conditions, allowing investors to remain invested with a level of risk mitigation.
While there may be benefits to investing in the ETFs from the onset, investors can purchase the funds at any time within the stated outcome period. Each outcome period reflects a new stated cap, allowing investors to remain invested with a level of risk mitigation.
The AllianzIM buffered outcome ETFs leverage AllianzIM’s core strengths, which include risk management experience and in-house hedging capabilities. As part of one of the largest asset management and diversified insurance companies in the world, AllianzIM is powered by the same proprietary in-house hedging platform that is used among affiliates to help manage more than $145 billion in hedged assets for institutional and retail investors around the globe. Offering a new way to help investors seek to mitigate risk and reduce volatility, these new ETFs complement Allianz Life’s suite of annuity and life insurance products.
“Introducing a new series of ETFs designed to bring our in-house hedging capabilities and track record of managing risk to the retail investor,” according to Allianz. “Built to help mitigate risk and lower volatility, Buffered Outcome ETFs allow investors to participate in the growth potential of the equity markets up to a stated Cap, with an explicit downside Buffer.”
Financial Advisors who are interested in learning more about the Buffered Outcome ETF strategy can register for the Tuesday, September 21 webcast here.