AllianzIM U.S. Large Cap Buffer10 Jan ETF (AZAJ)

Overview

The AllianzIM U.S. Large Cap Buffer10 Jan ETF (NYSEARCA: JANJ) seeks to provide investors with buffered exposure to the S&P 500 Price Return Index, limiting downside risk while forgoing some upside potential. It uses a 'buffer' strategy that protects against the first 10% of losses over a one-year period, resetting annually in January.

Reputation and Reliability

Allianz Investment Management LLC is a well-established asset manager with a global presence, known for its insurance expertise and structured solutions. They are considered reliable.

Management Expertise

AllianzIM has a team of experienced investment professionals specializing in options and structured strategies, which are essential for managing buffered ETFs.

Goal

To provide investors with buffered exposure to the S&P 500 Price Return Index, protecting against the first 10% of losses over a one-year period.

Investment Approach and Strategy

Strategy: The ETF employs a defined outcome strategy using FLEX Options to provide a buffer against the first 10% of S&P 500 losses over a one-year period.

Composition The ETF primarily holds FLEX Options on the S&P 500. It also holds a small percentage of cash or money market instruments.

Market Share: Data needed to accurately determine the market share isn't available.

Total Net Assets (AUM): 303364299.0

Key Competitors

• Innovator U.S. Equity Buffer ETF - January (BJAN)
• First Trust Cboe Vest U.S. Equity Buffer ETF - January (FJAN)
• AGFiQ Hedged Dividend Income Fund (DIVA)

Competitive Landscape

The competitive landscape for buffered ETFs is moderately competitive, with Innovator ETFs leading in AUM. JANJ offers a buffer against the first 10% of losses, potentially attracting investors seeking less downside protection compared to competitors offering more extensive buffers. However, this comes at the expense of lower upside participation.

Historical Performance: Historical performance data is readily available via financial websites; however, numerical data in structured format for this response is not directly accessible.

Benchmark Comparison: The ETF's performance should be compared to the S&P 500 Price Return Index to assess the effectiveness of its buffering strategy. Outperformance is not expected; the goal is to reduce downside volatility.

Expense Ratio: 0.77

Average Trading Volume

The average trading volume suggests moderate liquidity for JANJ, making it relatively easy to buy and sell shares.

Bid-Ask Spread

The bid-ask spread is typically narrow, indicating relatively low transaction costs for investors.

Market Environment Factors

Economic indicators, interest rates, and overall market sentiment, particularly regarding equity market volatility, influence the demand for and performance of buffered ETFs like JANJ.

Growth Trajectory

The growth trajectory of JANJ depends on investor demand for downside protection and the performance of the S&P 500. There are no significant strategy or holding changes anticipated unless the fund's objective is modified.

Competitive Edge

JANJu2019s competitive edge lies in its defined outcome strategy using FLEX Options, offering a specific level of downside protection. AllianzIM's expertise in options strategies also contributes to its advantage. Investors find JANJ more attractive for its brand and established product, which is easier to trade when compared with competitors. Also, JANJ offers a moderate buffer and is suitable for investors seeking less downside protection.

Volatility

The ETF's volatility is expected to be lower than the S&P 500 due to the buffer strategy. Historical volatility data is readily available but needs direct computation for structured format.

Market Risk

Market risk includes the possibility of S&P 500 declines exceeding the 10% buffer, resulting in losses. There is also the risk of missing potential upside gains due to the capped participation.

Ideal Investor Profile

The ideal investor for JANJ is one seeking to reduce downside risk in their S&P 500 exposure, particularly those nearing retirement or with a low-risk tolerance.

Market Risk

JANJ is best suited for long-term investors who prioritize capital preservation over maximizing returns.

The AllianzIM U.S. Large Cap Buffer10 Jan ETF (JANJ) offers investors a buffered exposure to the S&P 500, aiming to protect against the first 10% of losses annually. The ETF is managed by AllianzIM, a reputable firm with expertise in options strategies. JANJ could be suitable for risk-averse investors, however, its capped upside participation and the expense ratio of 0.77% may be a concern for some. Overall, JANJ is a good option for investors seeking downside protection within their large-cap equity allocation.

Data Sources:

• Allianz Investment Management LLC
• ETF.com
• Morningstar
• Yahoo Finance

Disclaimers:

The information provided is for informational purposes only and does not constitute investment advice. Investment decisions should be made based on your individual circumstances and consultation with a qualified financial advisor. Market share data may not be available.