AIM ETF Products Trust - AllianzIM U.S. Large Cap Buffer10 Feb ETF (FEBT)

Overview

The AllianzIM U.S. Large Cap Buffer10 Feb ETF (FEBL) seeks to provide investment results that correspond to the price return of the S&P 500, up to a predetermined upside cap, while providing a buffer against the first 10% of S&P 500 losses for a one-year period, beginning in February. It focuses on large-cap U.S. equities and uses a defined outcome strategy.

Reputation and Reliability

Allianz Investment Management LLC is a well-established asset manager with a long history in the financial services industry. They are known for their expertise in risk management and defined outcome investing.

Management Expertise

The management team consists of experienced professionals specializing in structured finance and derivatives strategies.

Goal

To provide buffered exposure to the S&P 500, limiting downside risk while allowing participation in potential gains up to a cap.

Investment Approach and Strategy

Strategy: The ETF employs a defined outcome strategy using FLEX Options on the S&P 500 Index to provide a buffer against losses and a cap on potential gains.

Composition The ETF primarily holds FLEX Options on the S&P 500 Index.

Market Share: Difficult to define exact market share as it's a niche product within the buffered ETF category.

Total Net Assets (AUM): 131318619

Key Competitors

• Innovator U.S. Equity Buffer ETF (BJUL)
• Innovator U.S. Equity Buffer ETF (IJUL)
• First Trust Cboe Vest U.S. Equity Buffer ETF (JUNZ)

Competitive Landscape

The buffered ETF market is growing, with several providers offering similar strategies with different buffer levels, caps, and outcome periods. FEBL competes on its specific buffer and cap levels, as well as Allianz's reputation. FEBL has a disadvantage due to its small market share. FEBL's advantage is Allianz Investment Management LLC.

Historical Performance: Historical performance varies depending on the outcome period and S&P 500 performance. Data should be gathered from FEBL's official fund factsheet.

Benchmark Comparison: The ETF's performance is compared to the S&P 500, considering its buffer and cap, to measure the effectiveness of its defined outcome strategy.

Expense Ratio: 0.79

Average Trading Volume

The ETF exhibits a moderate average trading volume, which may impact ease of entry and exit depending on order size.

Bid-Ask Spread

The bid-ask spread is relatively tight, indicating reasonable trading costs, but it can widen during periods of market volatility.

Market Environment Factors

Economic growth, interest rate movements, and S&P 500 volatility all influence FEBL's performance due to its link to the index and options-based strategy.

Growth Trajectory

Growth is tied to increased adoption of defined outcome investing strategies and investor demand for downside protection.

Competitive Edge

FEBLu2019s competitive advantage stems from Allianz's established reputation, risk management expertise, and defined outcome strategy. The ETF offers a unique defined outcome strategy for those that prefer the first 10% downside protection and a buffer. It's managed by a large firm that has deep expertise in options-based ETFs. The fund's buffer strategy allows investors to participate in market upside while mitigating potential losses, and the defined outcome period offers predictable risk management.

Volatility

Volatility is lower than the S&P 500 due to the buffer, but the cap limits potential gains.

Market Risk

Market risk is tied to the S&P 500's performance; the buffer mitigates the first 10% of losses. There is cap risk, as FEBL's investment is only capped up to a certain percentage.

Ideal Investor Profile

The ideal investor is risk-averse, seeking downside protection while participating in market gains, and understands defined outcome strategies.

Market Risk

FEBL is suitable for long-term investors seeking a specific level of downside protection and willing to accept capped upside potential.

AllianzIM U.S. Large Cap Buffer10 Feb ETF (FEBL) provides a defined outcome investment tied to the S&P 500 with a 10% buffer against losses, up to a capped return, for a specific period. It is managed by Allianz Investment Management LLC and aims to protect capital while allowing participation in market growth, suitable for risk-averse investors. The ETF mitigates risk by using FLEX options tied to the S&P 500 index. Investors should be aware of cap risk and expense ratio which is on the higher end compared to the other ETFs.

Data Sources:

• AllianzIM
• ETF.com
• Morningstar

Disclaimers:

This analysis is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions.