As markets grow more volatile, investors have fled to the sidelines, parking in cash to wait out the tumult. But investors need more than cash. They need to stay invested—especially retirees at risk of outliving their money.
In the upcoming webcast, Volatility is Upending Traditional Portfolios: What’s Your Strategy?, Brendan Cavanaugh, ETF Product Specialist, Allianz Investment Management LLC; and Charlie Ripley, VP of Portfolio Management, Allianz Investment Management U.S. LLC, will explore the potential of ETFs designed to allow investors to remain invested in the markets 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 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, 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.
Financial advisors who are interested in learning more about Allianz’s Buffered Outcome strategies can register for the Thursday, March 31 webcast here.