AllianzIM U.S. Large Cap Buffer20 Jul ETF (AZBL)

Overview

The AllianzIM U.S. Large Cap Buffer20 Jul ETF (JULB) seeks to provide investors with buffered exposure to the S&P 500 Price Return Index, limiting downside risk while forgoing some upside potential, over a specific outcome period.

Reputation and Reliability

Allianz Investment Management LLC (AllianzIM) is a global asset manager with a solid reputation and track record. While their ETF offerings are relatively new compared to established firms, Allianz is a well-known financial institution.

Management Expertise

Allianz Investment Management LLC benefits from the expertise of its experienced portfolio managers and investment professionals with a deep understanding of options strategies and risk management.

Goal

To provide investors with buffered exposure to the S&P 500 Price Return Index, while limiting downside risk and foregoing upside potential, for a specific outcome period.

Investment Approach and Strategy

Strategy: JULB employs a defined outcome strategy utilizing Flexible Exchange Options (FLEX Options) to achieve its objective. The ETF does not directly track the S&P 500 index.

Composition The ETF's primary holdings consist of FLEX Options on the S&P 500 Price Return Index and cash. It does not hold stocks directly.

Market Share: Insufficient data available to accurately determine the ETF's exact market share in the defined outcome ETF category.

Total Net Assets (AUM): 39000000

Key Competitors

• Innovator U.S. Equity Buffer ETF Series (various Mthly/Qrtly expirations, e.g., BUFF, QJUL)
• First Trust Cboe Vest U.S. Equity Buffer ETF Series (various expirations)
• Simplify U.S. Equity PLUS Convexity ETF (SPCX)

Competitive Landscape

The defined outcome ETF market is competitive, with Innovator ETFs and First Trust being major players. JULB differentiates itself with its specific buffer and outcome period. The advantages of JULB include limited downside risk and defined outcomes, while disadvantages are capped upside potential and complexity.

Historical Performance: Historical performance should be viewed within the context of the ETF's defined outcome strategy and should not be compared directly to broad market indices. Returns are tied to the outcome period's results.

Benchmark Comparison: A direct comparison to the S&P 500 is not appropriate due to the ETF's buffered and capped return profile. Comparisons should be made to similar defined outcome ETFs or risk-managed strategies.

Expense Ratio: 0.79

Average Trading Volume

The average trading volume varies, but typically indicates reasonable liquidity for investors. The average daily trading volume is approximately 7000

Bid-Ask Spread

The bid-ask spread depends on market conditions, but is generally tight, indicating relatively low trading costs.

Market Environment Factors

Economic indicators, interest rates, and overall market volatility influence the pricing of the options used within the ETF. Investor sentiment and demand for downside protection also affect JULB.

Growth Trajectory

The growth trajectory of JULB depends on investor demand for defined outcome strategies and the overall performance of the S&P 500 during the outcome period. Changes to the FLEX option usage are possible but unlikely.

Competitive Edge

JULB offers a predefined level of downside protection with a specific upside cap, which appeals to investors seeking to manage risk. The ETF's use of FLEX Options allows for customization of the buffer and cap levels. The advantage is the known outcome range for the investment period. It provides a risk-managed investment solution.

Volatility

The ETF's volatility should be lower than the S&P 500 due to its buffered structure. However, returns can be significantly impacted by market movements near the buffer and cap levels.

Market Risk

The primary market risk is the performance of the S&P 500. The ETF is also subject to options risk, including the risk that the options may not perform as expected or that the counterparty to the options may default.

Ideal Investor Profile

The ideal investor is one seeking downside protection with limited upside potential and understands the complexities of defined outcome strategies. They are generally risk-averse investors with a defined investment horizon.

Market Risk

JULB is suited for long-term investors seeking a level of downside protection within a portfolio, not for active traders seeking high-frequency gains or passive index followers.

AllianzIM U.S. Large Cap Buffer20 Jul ETF offers buffered exposure to the S&P 500, aiming to limit downside risk while capping upside potential over a specific period. The ETF utilizes FLEX Options to achieve its investment objective. It is suited for risk-averse investors seeking defined outcomes and downside protection. Investors should carefully consider the ETF's strategy and understand the risks and limitations before investing.

• BUFF
• QJUL
• SPCX

Data Sources:

• Allianz Investment Management LLC website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and do not constitute investment advice. Past performance is not indicative of future results. Investors should conduct their own due diligence before making any investment decisions.