AllianzIM U.S. Large Cap Buffer20 Aug ETF (AUGW)

The AllianzIM U.S. Large Cap Buffer20 Aug ETF is a defined-outcome fund from Allianz Investment Management (AllianzIM), a unit of the Allianz insurance group. It seeks to match the price return of the SPDR S&P 500 ETF Trust, up to a cap, while providing a buffer against the first 20% of losses over a one-year outcome period that begins in August.

The fund achieves this payoff by holding a combination of FLEX options on the S&P 500 ETF. The upside cap is set at the start of each outcome period based on market conditions, and it resets annually along with the buffer. Because the strategy tracks price return, dividends paid by S&P 500 companies are not captured.

The buffer and cap apply to an investment held for the full outcome period. Shares bought or sold partway through may experience a different remaining buffer and cap, and losses exceeding 20% are absorbed by the fund.