Deconstructing buffered ETFs
In an April 2026 explainer, Allianz Investment Management describes how its buffered ETFs stack three options layers to provide a 10% or 20% cushion against losses.
Buffer· 2 pages · PDF
What it says
Figures as stated by Allianz Investment Management, Apr 22, 2026- Allianz Investment Management says the buffer comes from a put spread, pairing a purchased at-the-money put with a sold put struck lower, covering 10% or 20% of reference asset declines.AllianzIM, p. 2
- Allianz Investment Management creates 1:1 exposure to the S&P 500 synthetically, using a bought call whose strike sits far below the index price instead of holding the stocks.AllianzIM, p. 2
- Allianz Investment Management limits upside by writing a call struck above the current price, so the fund follows gains 1:1 only until the stated cap is reached.AllianzIM, p. 1
- The funds hold FLEX Options, exchange-traded contracts with custom strikes and expiry dates, which carry the risk that the Options Clearing Corporation fails to settle them.AllianzIM
- The paper notes that caps and buffers fully apply only when shares are held for the whole outcome period, are not guaranteed, and that investors can lose everything.AllianzIM
The ETFIQ take
ETFIQ data to Oct 21, 2026 · 431 buffer ETFs on Oct 21, 2026On Oct 21, 2026, 107 of 431 buffer ETFs from 8 issuers sat at their cap, so they had no further upside this outcome period.
Related ETFs
The largest buffer ETFs ETFIQ covers, by net assetsBALTInnovator Defined Wealth Shield ETF - Quarterly1.8%FJANFT Vest U.S. Equity Buffer ETF - January4.0%FMAYFT Vest U.S. Equity Buffer ETF - May11.5%FAUGFT Vest U.S. Equity Buffer ETF - August15.0%FJUNFT Vest U.S. Equity Buffer ETF - June12.1%FSEPFT Vest U.S. Equity Buffer ETF - September14.7%
Figure: can still gain from today’s fund price, to Oct 21, 2026, from each fund’s page. All 431 buffer ETFs →
Related papers
Same topic, other sourcesQuestions people ask
What does the Allianz Investment Management paper conclude?
In an April 2026 explainer, Allianz Investment Management describes how its buffered ETFs stack three options layers to provide a 10% or 20% cushion against losses. The paper’s own words are at the link above.
What does ETFIQ’s data show on the same question?
On Oct 21, 2026, 107 of 431 buffer ETFs from 8 issuers sat at their cap, so they had no further upside this outcome period. ETFIQ states both figures and does not reconcile them.
What is a buffer ETF?
A fund that holds options so that, over a stated outcome period, it absorbs a stated part of an index’s fall and gives up gains above a cap. More on this →
Where can I read “Deconstructing buffered ETFs”?
On Allianz Investment Management’s own site. ETFIQ summarizes the paper and does not host it. Allianz Investment Management’s page ↗
Cite this pageCitation, APA and Markdown
ETFIQ, Deconstructing buffered ETFs (Allianz Investment Management), summary and ETFIQ take, as of Oct 21, 2026. https://etfiq.com/research/library/allianzim-deconstructing-buffered-etfs/
Summary by ETFIQ. ETFIQ is not affiliated with Allianz Investment Management; logos identify the source.