SPBW

📎 Investment Objective

The AllianzIM Buffer20 Allocation ETF (SPBW) seeks to provide investors with a buffer against the first 20% of losses in the S&P 500 Index over a one-year period, while also providing exposure to the upside performance of the S&P 500 Index up to a predetermined cap.

✨ Key Features

• Seeks to provide a 20% buffer against losses in the S&P 500 Index over a one-year period
• Provides exposure to the upside performance of the S&P 500 Index up to a predetermined cap
• Invests in a portfolio of options contracts on the S&P 500 Index, along with cash and cash equivalents
• Resets the buffer and cap annually

⚠️ Primary Risks

• Market risk: The ETF's performance is tied to the performance of the S&P 500 Index, and it is subject to the same market risks as the underlying index.
• Options risk: The use of options contracts exposes the ETF to the risks associated with the options market, such as volatility and counterparty risk.
• Liquidity risk: The ETF may have limited liquidity, which could affect its ability to sell positions at favorable prices.
• Cap risk: The predetermined upside cap may limit the ETF's potential for gains in a strongly performing market.

👤 Best For

The AllianzIM Buffer20 Allocation ETF may be suitable for investors who are seeking exposure to the S&P 500 Index with a level of downside protection, and who are willing to accept the trade-off of a predetermined upside cap. This ETF may be particularly appealing to investors who are concerned about market volatility and want to limit their downside risk.