AllianzIM U.S. Large Cap Buffer10 Jan ETF (AZAJ)

Overview

The AllianzIM U.S. Large Cap Buffer10 Jan ETF (JANJ) is designed to provide investors with exposure to the U.S. large-cap equity market while buffering against the first 10% of market losses over a specific one-year period. The ETF uses a strategy involving flexible exchange options to offer downside protection while still allowing participation in market gains. The primary focus is on large-cap stocks in the U.S. market, with asset allocation geared towards achieving the targeted buffer.

Reputation and Reliability

Allianz Investment Management (AllianzIM) is a well-established global asset manager with a strong reputation. They are known for their expertise in risk management and innovative investment solutions.

Management Expertise

The management team at AllianzIM possesses extensive experience in options strategies and portfolio construction, which is crucial for managing buffered ETFs.

Goal

The primary investment goal of JANJ is to provide investors with a buffered exposure to the returns of the U.S. large-cap equity market, aiming to protect against the first 10% of losses over a one-year period.

Investment Approach and Strategy

Strategy: JANJ employs a flexible exchange options strategy to provide a buffer against market downturns. It does not track a specific index in the traditional sense but is benchmarked against the S&P 500.

Composition The ETF's assets primarily consist of flexible exchange options contracts on the S&P 500 Index. It does not directly hold stocks.

Market Share: Data unavailable.

Total Net Assets (AUM): 209000000.00

Key Competitors

• Innovator U.S. Equity Buffer ETF Series (Various Months & Buffer Percentages)
• Simplify ETFs (Various)
• FT Cboe Vest U.S. Equity Buffer ETF Series (Various Months & Buffer Percentages)

Competitive Landscape

The buffer ETF market is competitive, with Innovator ETFs holding a significant market share. JANJ competes by offering a specific 10% buffer for the month of January, appealing to investors seeking targeted downside protection. Its advantage lies in AllianzIM's risk management expertise. Disadvantages include less flexibility compared to broader market ETFs.

Historical Performance: Data unavailable.

Benchmark Comparison: The ETF's performance should be compared to the S&P 500 with consideration for the buffer. When the market experiences -10% change in a year the benchmark will greatly outperform the ETF. When the market experiences a gain, the benchmark will also outperform due to the capped upside.

Expense Ratio: 0.74

Average Trading Volume

The ETF's liquidity is moderate, with an average trading volume of approximately 37,000 shares, affecting ease of trading and potential price impact.

Bid-Ask Spread

The bid-ask spread is generally around 0.10%, which can impact the cost of trading for larger orders.

Market Environment Factors

Economic indicators, market volatility, and interest rate movements can affect the value of the options contracts held by JANJ. Bullish markets will lead to lower returns in JANJ.

Growth Trajectory

Growth trends for JANJ depend on investor demand for downside protection and overall market sentiment. Changes to the ETF's holdings are infrequent, primarily involving adjustments to the options strategy as the expiration date approaches.

Competitive Edge

JANJu2019s competitive advantage stems from its defined buffer strategy and AllianzIMu2019s risk management expertise. It offers a specific level of downside protection that appeals to risk-averse investors. However, the capped upside limits participation in market gains, which may be a disadvantage in bull markets. The strategy requires active management and specialized expertise in options.

Volatility

JANJ is less volatile than the S&P 500 due to the buffer. Actual values unavailable.

Market Risk

JANJ is subject to the risk associated with market declines, although the buffer mitigates the first 10% of losses. The options strategy also carries counterparty risk.

Ideal Investor Profile

The ideal investor for JANJ is risk-averse, seeking downside protection while still participating in market gains. It suits investors looking for defined outcome investments.

Market Risk

JANJ is suitable for long-term investors seeking to mitigate downside risk. It is less appropriate for active traders due to the complexity of the options strategy.

The AllianzIM U.S. Large Cap Buffer10 Jan ETF (JANJ) is a defined outcome ETF offering a buffer against the first 10% of market losses in a year. It is managed by Allianz Investment Management, a reputable firm. JANJ is suitable for risk-averse investors who desire downside protection. While it offers limited upside, the ETF provides a measure of stability and risk management. It competes in the buffer ETF market, but has low market share compared to Innovator ETFs.

• BUFR
• SJAN
• QJAN
• IJUL
• DJAN

Data Sources:

• AllianzIM Website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and do not constitute financial advice. Market conditions and ETF performance can change over time.