Allianz Life subsidiary Allianz Investment Management announced Wednesday a new suite of buffered allocation exchange-traded funds — the AllianzIM 6 Month Buffer10 Allocation ETF, ticker SPBX, and the AllianzIM Buffer20 Allocation ETF, ticker SPBW.
The buffered ETFs, with 0.79% net expense ratios, are designed to offer advisors and investors single-ticker solutions without the need to monitor multiple funds, the firm said. The funds of funds seek to provide capital appreciation with some downside risk mitigation, offering diversified exposure to a full suite of AllianzIM Buffer10 or AllianzIM Buffer20 ETFs.
The funds invest in a laddered portfolio of AllianzIM Buffer ETFs, with underlying ETFs having either a 12-month outcome period, for SPBW, or a six-month outcome period, with SPBX. Each month, one of the underlying ETFs resets back to a full 10% or 20% buffer and adjusts the cap based on market volatility for the new outcome period. This approach reduces cap timing risk and helps ensure that an investor’s portfolio can respond to varying market conditions, Allianz said.
