BALT vs NVBW

BALTBInnovator Defined Wealth Shield ETF

NVBWCAllianzIM U.S. Equity Buffer20 Nov ETF

In short

BALT Most buffer ETFs hand you a cushion once a year. BALT rebuilds a 20% one every three months: four fresh starts against S&P 500 drawdowns. The trade-off is that the cap resets with it, and it starts low.

NVBW An insurance hedging desk in ETF form: NVBW absorbs the first 20% of a year's losses in the SPDR S&P 500 ETF Trust, and in exchange your upside stops at a cap reset each November.

Stated mandate

BALT The fund seeks to track the return of SPDR S&P 500 ETF Trust (SPY), subject to a cap, while buffering investors against losses. It targets a 20% buffer during each three-month outcome period and resets quarterly.

NVBW The Fund seeks to track the share-price returns of the SPDR® S&P 500® ETF Trust over its one-year Outcome Period up to an upside cap, while buffering the first 20% of losses in the Underlying ETF.

Why people hold it

• BALT Deep and short-dated: it targets a 20% buffer against losses in the S&P 500 ETF it references, over a three-month outcome period, then resets for the next quarter.innovatoretfs.com
• 0.69% a year, under the typical fee in its deep-buffer group, and it has been running the quarterly reset since launching in 2021.
• One of the larger funds doing 20% buffers on the S&P 500, and one of the strongest implementations in that peer group.

• NVBW The 20% buffer is at the deep end of the buffer shelf, and it resets on a fresh one-year clock every November.allianzim.com
• AllianzIM runs the options itself, on the same in-house hedging platform Allianz Life uses for its annuity book, instead of outsourcing the trade.allianzlife.com
• At 0.74%, the fee sits right at the middle of its deep-buffer peer group. No premium for the Allianz name.
• Live since 2022, with multiple full outcome periods completed.

Worth knowing

• BALT A deep buffer over a short window buys a low ceiling. The cap is set fresh each three-month period, and it is far tighter than what annual buffer funds start with.
• The 20% cushion is measured from the start of each outcome period. Buy mid-quarter and the buffer and cap you actually own differ from the headline terms.innovatoretfs.com
• Cheaper 20% buffer options exist: PBFR at 0.50%, Pacer's Swan SOS Flex funds (PSFJ, PSFM) at 0.49%.

• NVBW Buffer and cap apply in full only if you hold from the start of the November outcome period to its end. Buy mid-period and your terms differ.allianzlife.com
• Cheaper deep-buffer alternatives exist: PSFJ and PSFM both charge 0.49%.
• You track SPY's share-price returns, so dividends aren't part of the deal, and the fund trades lightly enough that limit orders matter.

Full BALT profile⁠

Full NVBW profile⁠