Buffered Income ETFs: Beyond One-Size-fits-All Risk Mitigation

In a market environment characterized by record stock prices and record interest rates, investor portfolios that follow a traditional mix of equities and fixed income assets face heightened risk. Financial advisers have a number of alternative investment tools to better manage these growing risks.

In the next webcast, Performance Buffered ETFs: Beyond One-Size-fits-All Risk Mitigation, Brendan Cavanaugh, ETF Product Specialist at Allianz Investment Management LLC; and Stephen Blumenthal, Executive Chairman and Chief Investment Officer at CMG Capital Management Group, will highlight the benefits of income-buffered ETF strategies designed to work in a wide range of market scenarios.

Specifically, Allianz has released a suite of earnings-buffered ETFs designed to extend the risk management solutions available to investors. The cheapest amortized income ETFs on the market seek to match the returns of the S&P 500 Price Return Index up to a stated cap, while providing a level of risk mitigation through top 10 protection. % and 20% of the S&P 500 Price Yield Index Losses. The suite includes:

ETFs follow a 12 month performance period. Each income period reflects a new declared ceiling proportionate to prevailing market conditions, allowing investors to remain invested with a level of risk mitigation.

While there may be some advantages to investing in ETFs early on, investors can purchase the funds at any time during the stated earnings period. Each income period reflects a new declared cap, allowing investors to stay invested with a level of risk mitigation.

AllianzIM Performance Buffered ETFs leverage AllianzIM’s core strengths, which include experience in risk management and internal hedging capabilities. As a member of one of the world’s largest diversified asset management and insurance companies, AllianzIM is powered by the same proprietary internal coverage platform that is used by affiliates to help manage more than 145 billion dollars in assets covered for institutional and retail investors around the globe. Offering a new way to help investors try to mitigate risk and reduce volatility, these new ETFs complement Allianz Life’s annuity and life insurance product line.

“Launched a new series of ETFs designed to bring our internal hedging capabilities and our risk management track record to the retail investor,” according to Allianz. “Built to help mitigate risk and reduce volatility, Income Buffer ETFs allow investors to participate in the growth potential of equity markets up to a set cap, with an explicit downward buffer. “

Financial advisors who want to learn more about the Buffered Income ETF strategy can sign up for the Tuesday, September 21 webcast here.