AllianzIM Launches Two New Buffered ETFs That Hedge The S&P 500 Exposure

Latest ETFs expand access for investors looking for risk mitigation in portfolios after volatile 2022

February 01, 2023 10:10 AM Eastern Standard Time–MINNEAPOLIS–(BUSINESS WIRE)–Allianz Investment Management LLC (AllianzIM), a wholly-owned subsidiary of Allianz Life Insurance Company of North America (Allianz Life®), announced today the launch of its February series of U.S. Large Cap Buffered Exchange Traded Funds (ETFs).

The series includes two ETFs with a 12-month Outcome Period: the AllianzIM U.S. Large Cap Buffer10 Feb ETF (NYSE Arca: FEBT) and the AllianzIM U.S. Large Cap Buffer20 Feb ETF (NYSE Arca: FEBW).

The February series is the latest expansion of AllianzIM’s U.S. Large Cap Buffered ETFs, offering investment professionals and investors access to new risk mitigation strategies as market uncertainty persists and fears of a recession mount in 2023. The ETF suite is designed to provide 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.

The performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.

Returns less than one year are cumulative. Investors cannot directly invest in an index.

Navigating Volatility And Managing Risk

According to Allianz Life’s Q4 Quarterly Market Perceptions study, nearly two in three Americans (64%) say they would rather have their money sit in cash than endure market swings[2]. AllianzIM’s expanded lineup allows weary investors to remain invested through market drops.

“Our Buffered ETFs make it easier for investors sitting on cash to get back into the market without jumping head first into the deep end,” says Johan Grahn, Head ETF Market Strategist at AllianzIM. “Investors that are concerned about down-side risk in the US equity market have an opportunity to add a Buffered ETF allocation to their portfolios to provide explicit risk mitigation of either 10% or 20% while still participating in US equity returns up to a Cap if things turn out better than they expected.”

Offered at an expense ratio of 74 basis points, AllianzIM’s extensive suite of Buffered ETFs is offered with six and 12-month Outcome Periods. The 12-month Outcome Period of the February series ETFs will be February 1, 2023 to January 31, 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.

Our Buffered ETFs make it easier for investors sitting on cash to get back into the market without jumping head first into the deep end...

2022 provided few places to hide from volatility as the S&P 500 ended at -19.44%. However, the AllianzIM U.S. Large Cap Buffer20 Jan ETF (JANW) closed the year at -0.65%, proving to be an effective portfolio strategy. AllianzIM’s suite of Buffered ETFs were listed as one of the fastest-growing ETFs in 2022 (Morningstar Direct, October 2022).

“The Allianz team is passionate about supplying investors with the tools needed to navigate volatility and manage risk,” says Brian Muench, president, AllianzIM. “We saw a tremendous demand for risk mitigation strategies in 2022 and we’re excited to offer yet another series of our Buffered ETF to eager investors.”

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, AllianzIM, with AUM of $17.5 billion (as of 12/31/22), is powered by the same proprietary in-house hedging platform that is used among affiliates to help manage more than $149 billion (as of 12/31/22) in hedged assets for institutional and retail investors around the globe.

Offering a new way to help investors seek to mitigate risk and reduce volatility, these Buffered ETFs complement Allianz Life’s suite of annuity and life insurance products.

For more information on the AllianzIM Buffered ETF suite, please visit here.




[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 2022 Q4 Quarterly Market Perceptions Study in December 2022 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 FORTUNE 100 Best Companies to Work For® and 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 2021, Allianz Life provided additional value to its policyholders via distributions of more than $10.6 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.