AllianzIM U.S. Large Cap Buffer10 Jul ETF (AZAL)

Overview

The AllianzIM U.S. Large Cap Buffer10 Jul ETF (JULB) seeks to provide investors with buffered exposure to the S&P 500 Total Return Index, protecting against the first 10% of losses over a one-year outcome period, while also participating in potential gains up to a cap. It employs a strategy involving FLEX Options to achieve this buffered downside protection and upside participation.

Reputation and Reliability

Allianz Investment Management is a well-established global investment manager with a strong reputation for providing risk management and investment solutions.

Management Expertise

Allianz Investment Management has extensive experience in managing structured solutions and option-based strategies.

Goal

To provide investors with buffered exposure to the S&P 500 Total Return Index, mitigating the first 10% of losses during the outcome period, while offering participation in the upside potential of the index up to a cap.

Investment Approach and Strategy

Strategy: The ETF utilizes FLEX Options on the S&P 500 to create a buffer against the first 10% of downside risk and to provide participation in potential upside gains, subject to a cap.

Composition The ETF's assets primarily consist of FLEX Options on the S&P 500 Total Return Index and cash.

Market Share: Data not publicly available.

Total Net Assets (AUM): 202717911.19

Key Competitors

• Innovator U.S. Equity Buffer ETF - July (BJUL)
• Simplify US Equity PLUS Convexity ETF (SPYC)
• Cboe Vest U.S. Equity Deep Buffer ETF - July (JULZ)

Competitive Landscape

The competitive landscape consists of other buffered ETFs and options-based strategies seeking to provide downside protection and upside participation. JULB offers a defined buffer and participation rate, while competitors may offer different levels of protection or use alternative strategies. The advantage is a defined outcome, while a disadvantage could be the potential for missing out on gains above the cap.

Historical Performance: Data not publicly available.

Benchmark Comparison: Data not publicly available. The benchmark is the S&P 500 Total Return Index.

Expense Ratio: 0.74

Average Trading Volume

The ETF's average trading volume provides reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread can fluctuate depending on market conditions and impacts the cost of trading.

Market Environment Factors

Economic indicators, market volatility, and interest rate changes can all influence the pricing of the underlying options and the overall performance of the ETF.

Growth Trajectory

The ETF's growth depends on investor demand for buffered investment solutions and the ability of the management team to effectively manage the option strategy.

Competitive Edge

JULB's competitive advantage lies in its defined outcome strategy, offering a buffer against a specific level of downside risk while providing participation in potential upside gains. This can be appealing to risk-averse investors. AllianzIM's expertise in structured solutions also gives it an edge. The ETF is well-suited to investors seeking a measure of downside protection with potential upside.

Volatility

The ETF's volatility is affected by the volatility of the S&P 500 and the pricing of the underlying options.

Market Risk

The ETF is subject to market risk, as the value of the underlying options is tied to the performance of the S&P 500, and the capped upside participation.

Ideal Investor Profile

JULB is ideal for risk-averse investors seeking to protect their portfolios against downside risk while still participating in market gains. It is well-suited for those approaching retirement or with a shorter investment time horizon.

Market Risk

JULB is best for long-term investors seeking buffered exposure to the S&P 500 rather than active traders.

The AllianzIM U.S. Large Cap Buffer10 Jul ETF provides buffered exposure to the S&P 500 Total Return Index, aiming to protect against the first 10% of losses over a one-year outcome period. It uses FLEX Options to achieve this buffered downside protection while offering participation in the potential gains of the market up to a cap. It is well-suited for risk-averse investors seeking a measure of downside protection with some upside potential. Investors should understand the risks associated with option-based strategies and the capped upside participation before investing.

Data Sources:

• Allianz Investment Management
• SEC Filings
• ETF.com

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions. Data is based on publicly available information and may be subject to change.