Allianz Investment Management has announced that its suite of buffered ETFs has surpassed USD1 billion in total assets under management, having been one of the fastest growing suites of ETFs in the industry in 2022.
With rising interest ratings and the current geopolitical tensions continuing in 2023, risk mitigation strategies from investors and investment professionals continue to be in high demand, the firm writes, as the majority of investors (83 per cent) believe the market will remain very volatile this year.
To meet this need, AllianzIM writes that it is continuing to expand its line-up of buffered ETFs to provide investors new entry points into the market with downside buffers against losses. Since debuting in June 2020, AllianzIM has launched 16 buffered ETFs with six or 12-month outcome periods.
“Reaching USD1 billion in assets across our ETF suite reflects the critical role these products play in investors’ portfolios,” says Johan Grahn, Head ETF Market Strategist at AllianzIM. “During these times of market uncertainty, we’ve really seen our products resonate with investment professionals and investors looking to stay invested in the markets while trying to limit their potential losses. We look forward to further expanding our suite of ETFs this year to allow more investors access to these risk mitigation strategies.”
AllianzIM’s ETF lineup seeks to provide a downside buffer of 10 per cent or 20 per cent against market drops, while allowing investors the opportunity to participate in the upside potential of the S&P 500 up to a stated cap.
Analysing the ETFs’ performance in 2022, Allianz writes that the product served as a valuable tool for investors. The S&P 500 Price Return Index ended at -19.44 per cent, whereas the AllianzIM U.S. Large Cap Buffer20 Jan ETF (JANW) closed the year at -0.65 per cent and AllianzIM U.S. Large Cap Buffer10 Jan ETF (JANT) was down 10.13 per cent.
