AllianzIM U.S. Large Cap Buffer20 Oct ETF (AZBO)

Overview

The AllianzIM U.S. Large Cap Buffer20 Oct ETF (NYSEARCA: OCVT) seeks to provide investors with returns that match the price return of the S&P 500, up to a predetermined cap, while providing a buffer against the first 20% of S&P 500 losses, over a specific one-year period. This is achieved using flexible exchange options. The ETF focuses on large-cap U.S. equities and uses a strategy involving options to provide defined downside protection and upside potential.

Reputation and Reliability

Allianz Investment Management is a well-established asset manager with a global presence. They are known for their expertise in risk management and structured investment solutions.

Management Expertise

AllianzIM's management team has extensive experience in managing options strategies and buffered investment products, allowing them to deliver targeted outcomes.

Goal

The ETF aims to provide a buffered downside exposure of 20% against market corrections, combined with capped upside participation in the returns of the S&P 500 index during a specific period.

Investment Approach and Strategy

Strategy: The ETF employs a strategy involving the purchase and sale of flexible exchange (FLEX) options on the S&P 500. It does not directly track an index but aims to provide specific buffered and capped returns.

Composition The ETF's assets primarily consist of FLEX options contracts on the S&P 500 and cash or cash equivalents to support the options strategy.

Market Share: Data unavailable to compute market share for this specific ETF.

Total Net Assets (AUM): 76842924.0

Key Competitors

• Innovator U.S. Equity Buffer ETF (BJUL)
• Innovator U.S. Equity Buffer ETF (IJUL)
• Innovator Defined Outcome ETF (BUFD)

Competitive Landscape

The competitive landscape consists of other defined outcome ETFs that offer buffered downside protection and capped upside potential. OCVT competes by offering a specific buffer (20%) and outcome period (October), which may be more attractive to investors with specific risk management needs. Advantages depend on the strike prices of the options held and market conditions. A disadvantage is the cap on upside potential and possible tracking error.

Historical Performance: Historical performance data is not provided due to the requirement of data being only in numerical format and the need for specific date ranges. Refer to financial data sources for historical performance.

Benchmark Comparison: Comparison to the S&P 500 requires specific historical performance data, but generally, the ETF will underperform the S&P 500 in strongly positive markets due to its capped upside.

Expense Ratio: 0.79

Average Trading Volume

OCVT's average trading volume reflects its liquidity, although the specific value should be sourced from financial data platforms.

Bid-Ask Spread

The bid-ask spread varies depending on market conditions, impacting the cost of trading, but usually, it is tight.

Market Environment Factors

OCVT's performance is affected by overall market volatility, interest rate movements, and investor sentiment towards risk-managed investment products.

Growth Trajectory

The growth trajectory of OCVT depends on investor demand for defined outcome strategies and the ETF's ability to deliver on its stated investment objective.

Competitive Edge

OCVT's competitive edge lies in its defined outcome strategy, providing investors with a known buffer against market losses and a capped upside. This predictability appeals to risk-averse investors seeking to participate in market gains while limiting downside exposure. The use of FLEX options allows for precise customization of the buffer and cap levels. AllianzIM's expertise in options strategies and risk management further enhances its competitive position.

Volatility

OCVT's volatility is generally lower than the S&P 500 due to the buffer strategy, but it is still subject to market fluctuations.

Market Risk

The primary market risk is that the cap on upside potential limits returns in strongly rising markets, and the buffer may not fully protect against losses exceeding 20%.

Ideal Investor Profile

The ideal investor is one seeking downside protection and capped upside participation in the S&P 500, and are comfortable with options-based ETFs.

Market Risk

OCVT is suitable for long-term investors seeking a defined outcome strategy and are comfortable sacrificing some upside potential for downside protection.

The AllianzIM U.S. Large Cap Buffer20 Oct ETF offers a defined outcome strategy using FLEX options to provide a 20% buffer against S&P 500 losses, with a capped upside. It is suitable for risk-averse investors looking for downside protection while participating in market gains. OCVT competes with other defined outcome ETFs. Investors should understand the trade-off between capped upside and downside protection. AllianzIM's expertise gives it a competitive edge.

Data Sources:

• Allianz Investment Management Website
• ETF Filings
• Financial News Outlets
• Market Data Providers

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual risk tolerance and financial circumstances. Past performance is not indicative of future results. Market share data may not be available for all ETFs and is subject to change.