Allianz IM Launches June Buffered ETFs

Allianz Investment Management has launched a new series of Buffered ETFs, known as the June Buffered ETFs. These ETFs aim to help investors navigate volatile markets and strike a balance between risk and reward in equity investments. The series includes two ETFs with a 12-month outcome period: AllianzIM U.S. Large Cap Buffer10 Jun ETF (NYSE Arca: JUNT) and AllianzIM U.S. Large Cap Buffer20 Jun ETF (NYSE Arca: JUNW).

The Buffered ETFs provide investors with a downside buffer of 10% or 20% against market drops while allowing them to participate in the upside potential of the SPDR S&P 500 ETF Trust, up to a specified cap. This approach offers a strategy for downside protection in bear markets while still providing opportunities for growth.

According to Todd Rosenbluth, head of research at VettaFi, advisors have shown a continued focus on downside protection when it comes to equity exposure. They value easy-to-use and tax-efficient ETF offerings like the Buffered ETFs.

Johan Grahn, head ETF market strategist at AllianzIM, emphasizes that investors are seeking reliable strategies that offer downside mitigation in the face of market volatility and economic uncertainty while still providing growth opportunities. The Buffered ETFs are designed to provide a unique balance between risk mitigation and growth appreciation in equity markets.

ETF Newz Says:

The June Buffered ETFs have an expense ratio of 74 basis points and are available with six- and 12-month outcome periods. For the June series, the 12-month outcome period spans from June 1, 2023, to May 31, 2024. Each outcome period adjusts the stated cap based on prevailing market conditions, allowing investors to stay invested with a level of risk mitigation.

Heavily Traded ETFs
SPDR S&P 500 - SPY
Invesco QQQ
Vanguard S&P 500 - VOO
Vanguard Total Market - VTI
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