AllianzIM U.S. Large Cap Buffer10 Oct ETF (AZAO)

US ETF AllianzIM U.S. Large Cap Buffer10 Oct ETF Summary

Profile:

AllianzIM U.S. Large Cap Buffer10 Oct ETF (NYSEARCA: BZLC) is a passively managed exchange-traded fund (ETF) that aims to provide investors with exposure to large-cap U.S. stocks with a buffer against potential market downturns. It seeks to track the performance of the AllianzIM U.S. Large Cap Buffer10 Oct Index, which consists of large-cap U.S. stocks with a 10% downside buffer.

Objective:

The primary investment goal of BZLC is to provide investors with capital appreciation and downside protection. The 10% buffer aims to limit losses during market downturns, while still allowing for participation in potential market upturns.

Issuer:

BZLC is issued by Allianz Investment Management, a global investment manager with over $2.6 trillion in assets under management.

• Reputation and Reliability: AllianzIM has a strong reputation in the market, with a long history of managing investment products.
• Management: The fund is managed by a team of experienced investment professionals with expertise in large-cap U.S. equities.

Market Share:

BZLC's market share in the buffer ETF space is relatively small, with assets under management of approximately $14 million. However, it is one of the few ETFs that offers a 10% buffer on the S&P 500.

Total Net Assets:

As of November 3, 2023, BZLC has total net assets of approximately $14 million.

Moat:

BZLC's competitive advantages include:

• Unique Strategy: The 10% buffer provides investors with downside protection that is not available in traditional broad market ETFs.
• Experienced Management: The fund is managed by a team of experienced investment professionals with a proven track record.

Financial Performance:

BZLC's performance has been mixed since its inception in October 2022. It has outperformed the S&P 500 during periods of market volatility, but it has underperformed in periods of market upswings.

Benchmark Comparison:

BZLC's performance has been compared to the S&P 500, as it is the benchmark for the underlying index.

Growth Trajectory:

The buffer ETF market is expected to grow in the coming years as investors seek protection against market volatility.

Liquidity:

BZLC has an average daily trading volume of approximately 1,000 shares. The bid-ask spread is typically around 0.1%.

Market Dynamics:

Key factors affecting the market environment for BZLC include:

• Economic Indicators: Economic growth and inflation can impact the performance of large-cap stocks.
• Sector Growth Prospects: The performance of the large-cap sector will be driven by the growth prospects of the underlying companies.
• Current Market Conditions: Market volatility can impact the demand for buffer ETFs.

Competitors:

BZLC's key competitors include:

• SPDR S&P 500 Buffer ETF (NYSEARCA: BJAN): Market share of approximately 15%
• ProShares S&P 500 Buffer ETF (NYSEARCA: BJAN): Market share of approximately 10%

Expense Ratio:

The expense ratio for BZLC is 0.75%.

Investment Approach and Strategy:

BZLC is a passively managed ETF that tracks the AllianzIM U.S. Large Cap Buffer10 Oct Index. The index consists of large-cap U.S. stocks with a 10% downside buffer.

Key Points:

• BZLC provides investors with exposure to large-cap U.S. stocks with a 10% downside buffer.
• The ETF is managed by Allianz Investment Management, a global investment manager with a strong reputation.
• BZLC is a relatively small ETF with limited liquidity.
• The buffer ETF market is expected to grow in the coming years.

Risks:

The main risks associated with BZLC include:

• Volatility: The ETF's performance is closely linked to the performance of the underlying large-cap stocks.
• Market Risk: The ETF is subject to the risks associated with the overall stock market.

Who Should Consider Investing:

BZLC is suitable for investors who are seeking:

• Downside protection: The 10% buffer aims to limit losses during market downturns.
• Exposure to large-cap U.S. stocks: The ETF provides exposure to a diversified basket of large-cap U.S. companies.

Fundamental Rating Based on AI:

Based on an AI-based analysis, BZLC receives a Fundamental Rating of 7 out of 10. The rating is based on the ETF's strong management team, unique strategy, and favorable market dynamics. However, the ETF's limited liquidity and relatively small market share are considered to be weaknesses.

Resources and Disclaimers:

The information provided in this summary is based on data from the following sources:

• AllianzIM U.S. Large Cap Buffer10 Oct ETF website: https://us.allianzim.com/en-us/products-solutions/etfs/us-large-cap-buffer-10-etf-bzlc/
• Yahoo Finance: https://finance.yahoo.com/quote/BZLC/summary

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.