Many investors opt to sit out volatile markets, pulling their investments to wait for sunnier days, but this strategy can set clients back on their financial goals. Retirees especially look for constant income generation and likely can’t afford to not participate in markets.
In the upcoming webcast, Why Buffered ETFs Now: Financial Professionals Share Tips & Best Practices, Brendan Cavanaugh, ETF product specialist at Allianz Investment Management LLC; Todd Harris, registered principal at Angelo Planning Group, LLC; Virgil Kahl, president and owner of Spring Ridge Financial Group; and Gregory Frank, director of financial analytics at Spring Ridge Financial Group, will discuss how they incorporate buffered ETF strategies in client portfolios, and the results they have seen.
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 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.
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.
AllianzIM Buffered Outcome ETFs offer institutional risk management for the retail investor.
“A growing series of ETFs designed to bring our in-house hedging capabilities and track record of managing risk to the retail investor,” according to AllianzIM. “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, August 16 webcast here.