In times of duress and intense volatility, many investors cash out their positions to wait out the tough times. However, not all investors have the luxury of sitting out the rough market swings, especially retirees who are reliant on a consistent source of income.
In the upcoming webcast, How to Mitigate Risk in Turbulent Times, Johan Grahn, head of ETF Strategy at Allianz Investment Management LLC; and Gene Goldman, CIO and director of research at Cetera Investment Management, will outline an option in which clients can stay invested while having a buffer against downside risk.
Allianz offers 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 seeks 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 the S&P 500 Price Return Index losses. The suite includes:
- AllianzIM U.S. Large Cap Buffer10 Jan ETF (JANT)
- AllianzIM U.S. Large Cap Buffer20 Jan ETF (JANW)
- AllianzIM U.S. Large Cap Buffer10 Apr ETF (APRT)
- AllianzIM U.S. Large Cap Buffer20 Apr ETF (APRW)
- AllianzIM U.S. Large Cap Buffer10 Jul ETF (JULT)
- AllianzIM U.S. Large Cap Buffer20 Jul ETF (JULW)
- AllianzIM U.S. Large Cap Buffer10 Oct ETF (OCTT)
- AllianzIM U.S. Large Cap Buffer20 Oct ETF (OCTW)
- AllianzIM U.S. Large Cap Buffer10 Nov ETF (NVBT)
- AllianzIM U.S. Large Cap Buffer20 Nov ETF (NVBW)
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.
Additionally, the AllianzIM U.S. Large Cap 6 Month Buffer10 Apr/Oct ETF (SIXO) and the AllianzIM U.S. Large Cap 6 Month Buffer10 Jan/Jul ETF (SIXJ) follow a six-month outcome period. The ETFs seek to match the returns of the S&P 500 Price Return Index up to a stated cap while providing downside risk mitigation through a buffer against the first 10% of the S&P 500 Price Return Index’s losses over a six-month outcome period for new adopters or short-term money, tactical advisors.
The AllianzIM buffered outcome ETFs leverage AllianzIM’s core strengths, including risk management experience and in-house hedging capabilities. As part of one of the largest asset management and diversified insurance companies globally, 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 retail investors around the globe. Offering a new way to help investors seek to mitigate risk and reduce volatility, these ETFs complement Allianz Life’s suite of annuity and life insurance products.
“Risk aversion leads to lost opportunities. Risk-managed investment strategies could be a solution,” according to AllianzIM.
“Across the spectrum of risk management, few strategies allow investors to participate in the growth potential of equities while also providing the opportunity to address downside exposure and volatility.”
Financial advisors who are interested in learning more about the buffered outcome strategy to manage risk can register for the Friday, November 4 webcast here.