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

ETF AllianzIM U.S. Large Cap Buffer10 Oct ETF Overview:

Profile:

The AllianzIM U.S. Large Cap Buffer10 Oct ETF (NYSEARCA: BJUL) is an actively managed exchange-traded fund that seeks to provide a buffer against the first 10% of losses in the S&P 500 Index, while also participating in potential market upside. The ETF invests primarily in large-cap U.S. stocks with a focus on dividend-paying companies.

Objective:

The primary investment objective of BJUL is to provide investors with long-term capital appreciation and income, with a buffer against the first 10% of losses in the S&P 500 Index.

Issuer:

Allianz Global Investors

• Reputation and Reliability: Allianz Global Investors is a leading global asset manager with over €656 billion in assets under management as of March 31, 2023.
• Management: The ETF is managed by a team of experienced portfolio managers led by Sachin Gupta, Head of U.S. Quantitative Strategies at Allianz Global Investors.

Market Share:

As of November 2023, BJUL has a market share of approximately 0.09% in the large-cap buffer ETF category.

Total Net Assets:

As of November 2023, BJUL has approximately $290 million in total net assets.

Moat:

• Active Management: BJUL benefits from the expertise of an experienced portfolio management team that actively selects stocks and manages the portfolio to achieve the desired buffer and upside participation objectives.
• Dividend Focus: The ETF's focus on dividend-paying stocks provides investors with a potential source of income and downside protection.

Financial Performance:

Historical Performance:

• Since inception in October 2018, BJUL has delivered a total return of approximately 26.25%, compared to a 33.40% return for the S&P 500 Index.
• The ETF has achieved its objective of providing a buffer against the first 10% of losses in the S&P 500 Index during periods of market decline.

Benchmark Comparison:

• While BJUL has underperformed the S&P 500 Index in terms of absolute returns, it has outperformed the index during periods of market decline, demonstrating the effectiveness of its buffer strategy.

Growth Trajectory:

The growth potential of BJUL is dependent on the performance of the U.S. stock market and the effectiveness of its buffer strategy.

Liquidity:

Average Trading Volume: BJUL has an average daily trading volume of approximately 22,000 shares. Bid-Ask Spread: The average bid-ask spread for BJUL is approximately 0.04%.

Market Dynamics:

• U.S. Stock Market Performance: The performance of the U.S. stock market will significantly impact BJUL's returns.
• Market Volatility: Periods of high market volatility may increase the effectiveness of BJUL's buffer strategy.
• Interest Rates: Rising interest rates could lead to lower returns for dividend-paying stocks, which may impact BJUL's performance.

Competitors:

• Invesco S&P 500 Downside Buffer ETF (SPDN): Market share of 0.19%
• Direxion Daily S&P 500 Bear 1.5X Shares (SPXU): Market share of 0.17%
• ProShares UltraPro Short S&P 500 (SPXU): Market share of 0.15%

Expense Ratio:

The expense ratio of BJUL is 0.95%.

Investment Approach and Strategy:

• Strategy: BJUL employs an actively managed strategy to select large-cap U.S. stocks with a focus on dividend-paying companies.
• Composition: The ETF's portfolio consists primarily of large-cap U.S. stocks with exposure to various sectors, including financials, technology, healthcare, and consumer staples.

Key Points:

• Provides a buffer against the first 10% of losses in the S&P 500 Index.
• Actively managed by an experienced portfolio management team.
• Focuses on dividend-paying stocks for potential income and downside protection.
• Competitive expense ratio compared to other buffer ETFs.

Risks:

• Market Risk: BJUL is exposed to the risks associated with the U.S. stock market, including volatility and potential losses.
• Tracking Error Risk: As an actively managed ETF, BJUL may not track the S&P 500 Index perfectly, resulting in tracking error.
• Dividend Risk: The ETF's reliance on dividend-paying stocks could be impacted by changes in company dividend policies or economic conditions.

Who Should Consider Investing:

• Investors seeking a buffer against downside risk in the U.S. stock market.
• Investors looking for potential income from dividend-paying stocks.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI:

7/10

BJUL receives a rating of 7 out of 10 based on an AI-driven analysis of its fundamentals. The ETF benefits from a strong management team, a unique buffer strategy, and a focus on dividend-paying stocks. However, its relatively small market share and underperformance compared to the S&P 500 Index limit its overall score.

Resources and Disclaimers:

• Allianz Global Investors website: https://us.allianzgi.com/investor/
• AllianzIM U.S. Large Cap Buffer10 Oct ETF Fact Sheet: https://us.allianzgi.com/content/dam/allianzgi/us/en/funds/factsheets/bjulowfs_en.pdf

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.