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Portfolio > Portfolio Construction

Allianz Jumps Into ETF Space: Portfolio Products

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AllianzAllianz Investment Management entered the exchange-traded funds arena with two initial ETFs: The AllianzIM U.S. Large Cap Buffer10 Apr ETF (AZAA) and  AllianzIM U.S. Large Cap Buffer20 Apr ETF (AZBA).

Each ETF trades on the NYSE Arca and has a net expense ratio of 0.74%. The Allianz division’s Buffered Outcome ETFs were “designed to expand the risk management solutions” and were “built to deliver outcome-based solutions to investors by utilizing buffers, caps and index-linked returns that may provide investors a greater degree of confidence,” it said.

The two ETFs help investors “mitigate risk and reduce volatility …. [and] complement Allianz Life’s suite of annuity and life insurance products,” it added. The ETFs seek to match the performance  of the S&P 500 Price Return Index up to a stated upside cap, while providing downside protection (through the buffer) against the first 10% and 20% of the index’s  losses for AZAA and AZBA, respectively, the company said. The firm manages over $145 billion in hedged assets which serve “as a bridge between insurance and capital markets.”

SEI Launches New Fund Strategies for Independent Advisors

SEI introduced new fund strategies built especially for independent advisors leveraging the SEI Wealth PlatformSM.

The six SEI American Funds Strategies from Independent Advisor Solutions by SEI were built with a core of American Funds by Capital Group using its low-cost, F3 share class to offer increased flexibility and to help advisors meet clients’ investment goals, SEI said. The six fixed income strategies are the: SEI American Funds Fixed Income Strategy (with a 0.30% expense ratio); SEI American Funds Conservative Growth & Income Strategy (0.34%); SEI American Funds Moderate Growth & Income Strategy (0.35%); SEI American Funds Growth & Income Strategy (0.38%); SEI American Funds Capital Growth Strategy (0.40%); and SEI American Funds Equity Strategy (0.43%).

The strategies, designed, constructed and maintained by SEI’s Investment Management Unit, are based on the company’s asset allocation philosophy and support a goals-based wealth management approach for growth, stability- and income. They also “benefit from the safety and security of assets being held within SEI Private Trust Company,” SEI said.

The strategies “span a broad risk-return spectrum” and allow investors to seek different targeted levels of returns commensurate with different levels of risk. They apply a strategic asset allocation based on long-term capital market assumptions, the company said.

Although the strategies typically will select from the American Funds, money market fund allocations within the portfolio can be allocated to one or more mutual funds from SEI’s family of mutual funds, it said.

Schwab Stock Slices Roll Out

Schwab has rolled out its previously announced Schwab Stock Slices, which allow investors to own fractional shares of stocks in the S&P 500 for as little as $5 each.

Investors can use the new service to buy a single stock slice or up to 10 different Stock Slices at once. They can also hold slices of as many S&P 500 companies in their portfolios as they wish via multiple purchases, according to the Schwab.

Schwab Stock Slices are bought commission-free online – just like regular stock trades at Schwab, it noted.

Roundhill Offers Sports Betting ETF

RIA and thematic ETF sponsor Roundhill Investments added an ETF to its offerings that tracks the online sports betting and online casino sector.

The Roundhill Sports Betting & iGaming ETF (BETZ, with a net expense ratio of 0.75%) is trading on the NYSE Arca and initially includes 30 holdings, including sportsbooks DraftKings and Flutter, betting technology companies Kambi and GAN, and Barstool Sports parent Penn National.

The Roundhill Sports Betting & iGaming ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Roundhill Sports Betting & iGaming Index, it said.

The new ETF was announced on the first anniversary of Roundhill’s first ETF, the Roundhill BITKRAFT Esports & Digital Entertainment ETF (NERD, with a 0.50% net expense ratio), which has gained more than 25% since inception.

OTC Markets Adds Risk Scoring  

OTC Markets Group added Risk Scoring to its Small Cap Listed Compliance market data product.

The latest enhancement provides broker-dealers and compliance and risk management teams with a quantitative metric to compare more than 2,300 sub-$500 million market cap U.S. exchange-listed securities, OTC Markets Group said.

Individual securities are assigned a total risk score based on 13 factors that provide a comprehensive view of the risk profile, it noted.  Key risk factors include: Promotion, hot sector status, penny stock status, shell status (current and past), price, market cap and trading volatility.

The latest data set provides a more in-depth, analytical compliance snapshot to better evaluate small cap securities listed on the NYSE, NYSE American and Nasdaq, OTC Markets Group said.

— Check out last week’s portfolio product roundup here: BlackRock Introduces New Treasury Bond ETF: Portfolio Products


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