 The
AllianzIM U.S. Large Cap Buffer20 Nov ETF (NVBW) is an actively
managed exchange-traded fund that seeks to provide investors with
upside participation in the price returns of the S&P 500 Index up to a
predetermined upside cap while providing a buffer against the first
20% of S&P 500 Index losses over the annual period. The fund is
designed to provide investors with exposure to the U.S. large-cap
equity market while aiming to mitigate downside risks.
The ETF
invests in a portfolio of exchange-traded index futures contracts,
options on index futures contracts, cash and cash equivalents, and
fixed-income securities to provide exposure to the S&P 500 Index. It
also uses a proprietary strategy that involves buying put options on
the S&P 500 Index to provide downside protection.
NVBW has an
expense ratio of 0.74%, which is relatively high for an ETF. The
fund's net asset value (NAV) has ranged from a low of $24.63 to a high
of $25.77 since its inception in November 2021. As an actively managed
fund, the portfolio managers have discretion in managing the fund's
investments, which may result in higher costs than passively managed
funds.
Investors should carefully consider the investment
objectives, risks, and charges and expenses of NVBW before investing.
The ETF is intended for investors who seek exposure to the U.S. equity
market while aiming to limit downside risks. As with all investments,
there are risks associated with investing in NVBW, including the risk
of loss of principal, fluctuations in market value, and the risk of
investing in equity securities.
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