FNOV vs SIXJ

FNOVCFT Vest U.S. Equity Buffer ETF - November

SIXJBAllianzIM U.S. Equity 6 Month Buffer10 Jan/Jul ETF

In short

FNOV One of the original November-reset buffer funds: since 2019 it has run a rolling 12-month claim on SPY's price, absorbing the first 10% of losses in exchange for an upside cap that resets every November.

SIXJ Most buffer ETFs lock you into a 12-month cycle. SIXJ runs a six-month one, resetting each January and July: it tracks SPY's share-price move, absorbs the first 10% of losses, and takes a fresh upside cap twice a year.

Stated mandate

FNOV The Fund seeks returns matching the price return of the State Street® SPDR® S&P 500® ETF Trust, up to a predetermined cap, while buffering the first 10% of losses during the current November outcome period.

SIXJ The Fund seeks to match the share-price return of SPDR S&P 500 ETF Trust over a six-month outcome period, subject to an upside cap and protection against the first 10% of losses.

Why people hold it

• FNOV The deal is written down, not improvised: FLEX options on SPY, the first 10% of price losses absorbed, upside capped, everything reset on a known November date.sec.gov
• Live since November 2019, through a bear market and multiple resets, and now a multi-billion-dollar member of First Trust's every-month buffer ladder.sec.gov
• The options settle through the Options Clearing Corporation, so the buffer does not hang on a single bank's creditworthiness the way a structured note does.sec.gov

• SIXJ The 10% buffer and the cap reset every January 1 and July 1, so terms refresh twice a year instead of on the usual annual clock.
• 0.74% expense ratio, on the lean side for a defined-outcome fund and below the typical fee among its shallow-buffer peers.
• The reference asset is SPY itself, the original S&P 500 ETF, so the payoff is keyed to a plain vanilla benchmark rather than a bespoke index.
• Rates among the stronger implementations in a crowded shallow-buffer field, alongside AllianzIM's other six-month siblings like SIXZ and SIXD.

Worth knowing

• FNOV The 10% buffer and the cap belong to the full outcome period. Buy mid-period and your own cushion and upside room differ from the headline terms.sec.gov
• 0.85% a year, above the typical buffer fund. Similar 10% buffer exposure trades cheaper elsewhere, such as ZALT at 0.69% or the laddered BUFB at 0.10%.
• It follows SPY's price return, so index dividends do not come through and the fund is not built as an income payer.

• SIXJ Buffer and cap are designed to work over the full six-month period. Buy mid-period and you get whatever cushion and upside room remain at that moment.
• It tracks SPY's share-price return, so dividends aren't passed through and the fund isn't structured to pay income.
• Volume is light next to the largest buffer funds, so bid-ask spreads can run wider, especially in fast-moving markets.

Full FNOV profile⁠

Full SIXJ profile⁠