AllianzIM U.S. Large Cap Buffer20 Apr ETF (APRW)

Overview

The AllianzIM U.S. Large Cap Buffer20 Apr ETF (NYSEARCA: AZBA) seeks to provide investment results that correspond to the price return of the S&P 500 Price Index, up to a predetermined upside cap, while providing a buffer against the first 20% of S&P 500 Price Index losses, over a defined one-year period beginning in April. The ETF invests in FLexible EXchange Options (FLEX Options).

Reputation and Reliability

Allianz Investment Management LLC (AllianzIM) is a subsidiary of Allianz Life Insurance Company of North America and has a solid reputation and long track record in managing investments and providing financial solutions.

Management Expertise

AllianzIM's management team comprises seasoned professionals with experience in options trading, risk management, and ETF portfolio construction.

Goal

To provide investment results that correspond to the price return of the S&P 500 Price Index, up to a predetermined upside cap, while providing a buffer against the first 20% of S&P 500 Price Index losses over a specific period.

Investment Approach and Strategy

Strategy: The ETF employs a strategy involving FLEX Options to provide a buffered return profile relative to the S&P 500 Price Index.

Composition The ETF's assets primarily consist of FLEX Options on the S&P 500 Price Index and cash equivalents.

Market Share: AZBA's market share is relatively small compared to broader S&P 500 ETFs.

Total Net Assets (AUM): 60156961

Key Competitors

• Innovator U.S. Equity Buffer ETF (BJUL)
• FT Cboe Vest U.S. Equity Buffer ETF - July (BJUL)

Competitive Landscape

The buffered ETF market is competitive with several issuers offering similar products with varying buffer levels, caps, and expiration dates. AZBA offers a specific buffer and cap for the April period. Competitors like Innovator ETFs offer a wider range of buffer strategies. AZBA's performance depends heavily on the S&P 500's movement within its defined cap and buffer zone. Smaller AUM compared to competitors.

Historical Performance: Historical performance varies depending on the specific one-year period and S&P 500 movement. Returns are capped on the upside, and the downside is buffered up to 20%.

Benchmark Comparison: The ETF is designed to perform differently than the S&P 500. It will underperform the S&P 500 in strongly positive markets (due to the cap) and outperform in modestly negative markets (up to the 20% buffer).

Expense Ratio: 0.77

Average Trading Volume

The ETF exhibits moderate liquidity with an average trading volume that may fluctuate based on market conditions.

Bid-Ask Spread

The bid-ask spread is generally competitive, providing a reasonable cost for trading under normal market conditions.

Market Environment Factors

Economic indicators, interest rates, and overall market sentiment influence the S&P 500, which in turn affects AZBA's performance. Investor demand for downside protection also impacts the ETF.

Growth Trajectory

The growth trajectory of AZBA is tied to investor interest in buffered investment strategies and AllianzIM's ability to attract and retain assets. No significant changes to strategy or holdings other than periodic resetting of the options strategy in April.

Competitive Edge

AZBA's competitive advantage lies in its defined buffer and cap strategy using FLEX Options, offering investors a specific level of downside protection and upside participation relative to the S&P 500. It provides transparency into the buffered outcome over the April to April annual period. This differs from plain vanilla index tracking and allows investors to customize their exposure based on their risk tolerance. AllianzIM's expertise in options trading adds to the ETF's value proposition.

Volatility

AZBA's volatility is generally lower than the S&P 500 due to the downside buffer but can still be subject to market fluctuations.

Market Risk

Market risk is inherent in AZBA due to its exposure to the S&P 500. The ETF's capped upside limits potential gains during bull markets, and the 20% buffer doesn't protect against losses exceeding that threshold.

Ideal Investor Profile

The ideal investor is risk-averse or moderately risk-tolerant, seeking downside protection while participating in potential market gains, and understands the trade-off of capped upside.

Market Risk

AZBA is suitable for long-term investors who want a buffered exposure to the S&P 500, as well as those nearing retirement or those looking to reduce portfolio volatility.

AllianzIM U.S. Large Cap Buffer20 Apr ETF (AZBA) is designed to provide a buffered investment strategy linked to the S&P 500. The ETF offers a defined level of downside protection (20%) with a capped upside potential. The ideal investor is seeking a less volatile S&P 500 investment and willing to forgo some upside gain for downside risk management. The ETF resets annually in April, allowing for a defined buffer period.

Data Sources:

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

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Investors should conduct their own due diligence and consult with a financial advisor before making any investment decisions. Market data and analytics are subject to change.