ARLU
AllianzIM U.S. Equity Buffer15 Uncapped Apr ETF
📎 Investment Objective
The AllianzIM U.S. Equity Buffer15 Uncapped Apr ETF (ARLU) seeks to provide investors with a buffer against the first 15% of losses in the S&P 500 Index over a one-year period, while providing upside exposure to the S&P 500 Index with no cap on potential gains.
Overview
ETF tracking AllianzIM U.S. Equity Buffer15 Uncapped Apr ETF
Performance
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Investment Summary
📎 Investment Objective
The AllianzIM U.S. Equity Buffer15 Uncapped Apr ETF (ARLU) seeks to provide investors with a buffer against the first 15% of losses in the S&P 500 Index over a one-year period, while providing upside exposure to the S&P 500 Index with no cap on potential gains.
🎯 Investment Strategy
ARLU achieves its objective by investing in a portfolio of FLexible EXchange Options (FLEX Options) on the S&P 500 Index. The fund's strategy aims to provide a buffer against the first 15% of losses in the S&P 500 Index over a one-year period, while allowing investors to participate in the upside of the index with no cap on potential gains.
✨ Key Features
- Provides a 15% buffer against losses in the S&P 500 Index over a one-year period
- Offers uncapped upside exposure to the S&P 500 Index
- Resets the buffer and upside exposure annually in April
- Designed to help manage market volatility and downside risk
⚠️ Primary Risks
- Market risk: The fund's value may decrease due to changes in general market conditions
- Derivatives risk: The use of FLEX Options may not achieve the desired results and can be volatile
- Liquidity risk: The fund's FLEX Options may have limited liquidity, which could impact the fund's ability to meet redemption requests
- Concentration risk: The fund's performance is tied to the S&P 500 Index and may be more volatile than a more diversified portfolio
👤 Best For
ARLU may be suitable for investors seeking to participate in the upside potential of the S&P 500 Index while mitigating downside risk through the 15% buffer. It may be particularly appealing to investors with a moderate risk tolerance who are looking for a way to manage market volatility in their portfolio.