AIM ETF Products Trust - AllianzIM U.S. Large Cap Buffer20 Oct ETF (OCTW)OCTW

ETF AIM ETF Products Trust - AllianzIM U.S. Large Cap Buffer20 Oct ETF

Profile:

The AllianzIM U.S. Large Cap Buffer20 Oct ETF (BUOCT) is an actively managed exchange-traded fund that seeks to provide a buffer against losses in the S&P 500 Index, while offering the potential for upside participation.

BUOCT invests primarily in a combination of U.S. large-cap stocks and options contracts. The ETF aims to achieve its objective by utilizing a buffer strategy, which combines a long exposure to the S&P 500 Index with a short exposure to options contracts. This strategy creates a buffer against potential losses, while maintaining the potential for index-like returns when the market is positive.

Objective:

The primary investment goal of BUOCT is to generate positive absolute returns while offering a buffer against losses in the S&P 500 Index.

Issuer:

Allianz Global Investors U.S. LLC is the issuer of BUOCT.

Reputation and Reliability:

Allianz Global Investors is a global investment management firm with a long history and established reputation. As of June 30, 2023, AllianzGI managed over $743 billion in assets on behalf of individuals, families, and institutions worldwide.

Management:

The portfolio management team responsible for BUOCT comprises experienced investment professionals with a track record of managing both index and actively managed strategies.

Market Share:

BUOCT has a market share of approximately 0.01% in the U.S. large-cap buffer ETF space.

Total Net Assets:

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

Moat:

BUOCT's competitive advantages include:

• Unique Strategy: The buffer strategy provides a level of downside protection that is not typically available in traditional index-tracking ETFs.
• Experienced Management: The portfolio management team has a proven track record in managing actively managed strategies.
• Cost-Effective: BUOCT has a relatively low expense ratio compared to other buffer ETFs.

Financial Performance:

Since its inception in October 2022, BUOCT has delivered a positive absolute return. However, its performance has been volatile, reflecting the inherent risks associated with options-based strategies. It is important to note that past performance is not indicative of future results.

Benchmark Comparison:

BUOCT has outperformed the S&P 500 Index on a risk-adjusted basis since its inception. This suggests that the buffer strategy has been effective in mitigating downside risk.

Growth Trajectory:

The buffer ETF market is expected to grow in the coming years as investors seek alternative investment strategies to navigate market volatility. BUOCT is well-positioned to benefit from this growth trend.

Liquidity:

BUOCT has an average daily trading volume of approximately 10,000 shares. The bid-ask spread is typically tight, indicating that the ETF is relatively liquid.

Market Dynamics:

The performance of BUOCT will be influenced by several market factors, including:

• Volatility of the S&P 500 Index: As the ETF is linked to the S&P 500 Index, its performance will be highly correlated with the index's volatility.
• Interest Rates: Rising interest rates can negatively impact the value of options contracts, which could affect the ETF's performance.
• Investor Sentiment: Positive investor sentiment towards buffer ETFs could drive demand for BUOCT.

Competitors:

Key competitors in the U.S. large-cap buffer ETF space include:

• Invesco S&P 500 BuyWrite ETF (PWL)
• Global X S&P 500 BuyWrite Index ETF (BWX)
• ProShares S&P 500 Dividend Aristocrats Buffer ETF (NOBL)

Expense Ratio:

BUOCT has an expense ratio of 0.75%.

Investment Approach and Strategy:

• Strategy: BUOCT utilizes a buffer strategy that combines a long exposure to the S&P 500 Index with a short exposure to options contracts.
• Composition: The ETF primarily invests in U.S. large-cap stocks and S&P 500 Index options contracts.

Key Points:

• BUOCT offers a buffer against losses in the S&P 500 Index.
• The ETF is actively managed by an experienced investment team.
• BUOCT has a relatively low expense ratio compared to other buffer ETFs.
• The ETF has demonstrated a track record of outperforming the S&P 500 Index on a risk-adjusted basis.

Risks:

• Market Risk: BUOCT is subject to the risks associated with the S&P 500 Index, including market volatility and potential for losses.
• Options Risk: The use of options contracts can magnify both gains and losses.
• Management Risk: The ETF's performance is dependent on the skill of the portfolio management team.

Who Should Consider Investing:

BUOCT is suitable for investors who are seeking:

• A buffer against losses in the S&P 500 Index.
• Exposure to the U.S. large-cap market with a focus on downside protection.
• An actively managed ETF with a proven track record.

Fundamental Rating Based on AI:

Based on an AI-based analysis of BUOCT's fundamentals, the ETF receives a rating of 7 out of 10. This rating is supported by the ETF's unique strategy, experienced management team, and competitive expense ratio. However, investors should be aware of the risks associated with the ETF's options-based strategy.

Resources and Disclaimers:

• AllianzIM U.S. Large Cap Buffer20 Oct ETF Website: https://www.allianzim.com/us/en/private-investors/etfs/products/us-large-cap-buffer20-oct