Buffered ETFs Explained: Downside Protection | Johan Grahn

The podcast episode of "Behind the Ticker," hosted by Brad Roth, features Johan Grahn from Allianz discussing the intriguing world of buffered ETF products. Johan Grahn, with his extensive background in investment and asset management over two decades, delves into how buffered ETFs provide investors with defined outcomes, integrating protection against market downturns with a cap on maximum gains. These innovative products, primarily based on the S&P 500, aim to manage investment risk while ensuring transparency and building investor confidence.Grahn's journey through university endowments, consulting, and roles in large insurance companies has honed his expertise in risk-managed strategies and portfolio construction. This experience underpins his current role at Allianz, where he oversees the launch of buffered ETFs, a testament to his commitment to developing products that balance risk and return efficiently.The conversation explores the mechanics of buffered ETFs, including their reliance on an options package to achieve predefined outcomes. With different levels of protection (buffers) and durations available, these ETFs cater to a broad spectrum of investor needs. Grahn explains the reset process at the end of each outcome period, which allows for continuous protection and potential growth.Buffered ETFs emerge as a flexible investment solution amidst a noticeable shift towards more conservative strategies among retiring individuals. The podcast highlights how these ETFs can serve a wide range of investors, from those seeking to reduce equity risk in their portfolios to those looking to add risk in a controlled manner.Listeners interested in Allianz's buffered ETFs can find more information on their website, which offers comprehensive resources, including videos and product tables. Get Brad's daily market research: Subscribe to The Signal at thorft.com/newsletterMore episodes: thorft.com/podcast