As economic instability lingers, AllianzIM’s May Buffered ETFs series creates opportunities for investors anxious about financial security
MINNEAPOLIS – May 1, 2023 – Allianz Investment Management LLC (AllianzIM), a wholly-owned subsidiary of Allianz Life Insurance Company of North America (Allianz Life®), launched two new Buffered Exchange Traded Funds (ETFs) today.
The new ETFs have 12-month Outcome periods with a 10% and 20% Buffer: AllianzIM U.S. Large Cap Buffer10 May ETF (NYSE Arca: MAYT) and the AllianzIM U.S. Large Cap Buffer20 May ETF (NYSE Arca: MAYW).
With Americans growing anxious over their financial security, Buffered ETFs seek to offer investors expanded access to equity markets through innovative risk mitigation strategies. The ETFs seek to offer a downside Buffer of 10% or 20% against market drops while allowing investors the opportunity to participate in the upside potential of the SPDR S&P 500 ETF Trust up to a stated Cap.
According to Allianz Life’s Q1 Quarterly Market Perceptions Study, 62% of Americans say they would rather keep cash on the sidelines than endure market swings.[2] AllianzIM’s selection of Buffered ETFs provide investors the opportunity to participate in U.S equity markets while seeking to offer a buffer against losses.
“The tug of war between the Fed and the market continues and recession fears fuel uncertainty and volatility that keep some investors on the sidelines,” says Johan Grahn, Head ETF Market Strategist. “In these times of market uncertainty, we believe our Buffered ETFs provide investors a cushion against the S&P 500 downside of up to either 10% or 20%, while still offering upside potential in market rallies.”
The AllianzIM Buffered ETFs seek to leverage AllianzIM’s core strengths, which include risk management experience and in-house hedging capabilities. As part of one of the largest asset management and diversified insurance companies in the world (Allianz SE), AllianzIM is powered by the same proprietary in-house hedging platform that is used among affiliates to help manage more than $145 billion (as of 12/31/22) in hedged assets for institutional and retail investors around the globe. Offering a new way to help investors to mitigate risk and reduce volatility, these ETFs complement Allianz Life’s suite of annuity and life insurance products.
Offered at an expense ratio of 74 basis points[1], AllianzIM’s suite of Buffered ETFs is offered with six and 12-month Outcome Periods. The 12-month Outcome Period of the May ETF series will be May 1, 2023 to April 30, 2024. Each Outcome Period reflects a new stated Cap commensurate with prevailing market conditions, allowing investors to remain invested with a level of risk mitigation.
“The latest additions to our Buffered ETFs series reaffirm our commitment to helping investors achieve their financial goals in any market environment,” AllianzIM President Brian Muench said. “We look forward to continuing to thoughtfully develop products that align with investor needs.”
For more information on the AllianzIM Buffered ETF suite, please visit www.allianzIMetfs.com.
[1] Gross reflects the Cap and Buffer prior to taking into account the 0.74% expense ratio of the ETF while Net accounts for the expense ratio, but does not include brokerage commissions, trading fees, taxes and non-routine or extraordinary expenses. The Cap and Buffer experienced by investors may be different than the stated numbers. The funds’ website, at www.allianzIMetfs.com, provides important fund information as well as information relating to the potential outcomes of an investment in the Fund on a daily basis.
[2] Allianz Life conducted an online survey, the 2023 Q1 Quarterly Market Perceptions Study in March 2023 with a nationally representative sample of 1,005 Respondents age 18+.
About Allianz Investment Management LLC
AllianzIM, a wholly owned subsidiary of Allianz Life Insurance Company of North America, is a registered investment adviser. AllianzIM provides hedging and other derivatives-based risk management solutions through its proprietary platform.
About Allianz Life Insurance Company of North America
Allianz Life Insurance Company of North America, one of the Ethisphere World’s Most Ethical Companies®, has been keeping its promises since 1896 by helping Americans achieve their retirement income and protection goals with a variety of annuity and life insurance products. In 2022, Allianz Life provided additional value to its policyholders via distributions of more than $7.7 billion. As a leading provider of fixed index annuities, registered index-linked annuities and fixed index universal life insurance, Allianz Life is part of Allianz SE, a global leader in the financial services industry with approximately 150,000 employees in more than 70 countries. Allianz Life is a proud sponsor of Allianz Field® in St. Paul, Minnesota, home of Major League Soccer’s Minnesota United.
