AIM ETF Products Trust - AllianzIM U.S. Large Cap Buffer20 Jan ETF (JANW)

Overview

The AllianzIM U.S. Large Cap Buffer20 Jan ETF (NYSEARCA: JJAN) seeks to provide buffered exposure to the price returns of the S&P 500 Index, up to a predetermined cap, while buffering investors against the first 20% of losses over a one-year period. It focuses on large-cap U.S. equities.

Reputation and Reliability

Allianz Investment Management LLC is a well-established asset manager, known for its structured solutions and risk management expertise.

Management Expertise

The management team has experience in structured finance and derivatives, crucial for managing the buffered outcome strategy.

Goal

To provide investors with buffered exposure to the S&P 500 Index, limiting losses to 20% while participating in potential gains up to a cap.

Investment Approach and Strategy

Strategy: The ETF employs a defined outcome strategy using options to provide a buffer against losses, while capping potential gains.

Composition The ETF's portfolio primarily consists of FLex Options referencing the S&P 500 Index, along with a small allocation to cash or other short-term instruments.

Market Share: Insufficient data available to accurately determine JJAN's specific market share.

Total Net Assets (AUM): 184100000

Key Competitors

• Innovator U.S. Equity Buffer ETF (BJUL)
• Simplify US Equity PLUS Downside Convexity ETF (SPYC)
• FT Cboe Vest U.S. Equity Deep Buffer ETF (DFND)

Competitive Landscape

The defined outcome ETF market is becoming increasingly competitive. JJAN competes on its buffer level, upside cap, and the reputation of Allianz. Competitors may offer different buffer levels, caps, and underlying indexes, providing investors with choices based on their risk and return preferences.

Historical Performance: Historical performance varies depending on the specific period and market conditions. Performance is directly correlated to S&P 500 performance during the outcome period, bounded by the buffer and cap.

Benchmark Comparison: The ETF's performance should be compared to the S&P 500 Index, considering the buffer and cap. The ETF is designed to underperform the S&P 500 in strongly positive markets and outperform in moderately negative markets.

Expense Ratio: 0.74

Average Trading Volume

JJAN exhibits moderate liquidity, reflected in its average trading volume.

Bid-Ask Spread

The bid-ask spread for JJAN is generally competitive, but can vary depending on market conditions.

Market Environment Factors

Economic growth, interest rates, and market volatility influence the performance of the S&P 500, and therefore, JJAN's potential returns. Investor sentiment and demand for downside protection also affect the ETF.

Growth Trajectory

The growth trajectory depends on investor adoption of defined outcome ETFs and the ability of Allianz to effectively manage the fund's strategy. Changes in market conditions can also impact holdings and strategy.

Competitive Edge

JJAN's competitive advantages lie in its defined outcome strategy, providing a specific level of downside protection with a capped upside. The fund is managed by Allianz Investment Management, a firm known for its expertise in structured solutions. This combines the benefits of index exposure with a risk management overlay, appealing to investors seeking to mitigate potential losses while participating in market gains. The defined outcome period resets annually, offering repeated downside protection.

Volatility

JJAN's volatility is lower than the S&P 500 due to the buffer. However, the upside is also capped, limiting potential gains in strongly positive markets.

Market Risk

The ETF is subject to market risk as it is linked to the S&P 500. Changes in interest rates and economic conditions can impact performance.

Ideal Investor Profile

The ideal investor is risk-averse, seeking downside protection while still participating in market gains. This investor might be nearing retirement or have a low tolerance for losses.

Market Risk

JJAN is suitable for long-term investors who prioritize capital preservation and are willing to sacrifice some potential upside for downside protection.

The AllianzIM U.S. Large Cap Buffer20 Jan ETF (JJAN) offers a defined outcome investment strategy by providing a buffer against the first 20% of losses in the S&P 500, while capping potential gains. It targets risk-averse investors seeking downside protection with some participation in market upside. Managed by Allianz Investment Management, JJAN utilizes options contracts to achieve its objectives. While offering downside protection, it is important to understand that the ETF may underperform the S&P 500 in strongly bullish markets. Potential investors should carefully consider the capped upside, the buffer, and expense ratio before investing.

Data Sources:

• AllianzIM ETF Website
• SEC Filings
• Morningstar
• etf.com

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.