SEPT vs XTR

SEPTBAllianzIM U.S. Equity Buffer10 Sep ETF

XTRCGlobal X S&P 500 Tail Risk ETF

In short

SEPT The September link in AllianzIM's buffer chain: FLEX options on the SPDR S&P 500 ETF that absorb the first 10% of a year's losses in exchange for a capped upside, with terms reset every September 1. Priced below the buffer-fund median.

XTR Most downside-protection ETFs sell away your upside to pay for it. XTR pays cash instead: it owns the S&P 500 stocks and buys 10% out-of-the-money puts every quarter, leaving the upside uncapped.

Stated mandate

SEPT The actively managed ETF seeks to match the share-price return of the SPDR S&P 500 ETF Trust at the end of each one-year Outcome Period, subject to an upside Cap and a buffer against the first 10% of losses. It primarily uses FLEX Options referencing that ETF.

XTR The Fund seeks to track the performance of the Cboe S&P 500 Tail Risk Index before fees and expenses.

Why people hold it

• SEPT Cheaper than the typical buffer fund at 0.74% a year against a 0.79% median for its shallow-buffer cohort, and it undercuts several rival dated buffers charging 0.79%.
• The deal is spelled out before you own it: a 10% buffer against losses in the reference ETF and a stated upside cap, both fixed for a one-year outcome period that restarts each September 1.
• Part of a full AllianzIM buffer lineup priced at the same 0.74%, including six-month siblings SIXZ, SIXD and SIXJ, so a September start date can be laddered with other reset calendars.
• Running since 2023 and rated among the stronger builds in a crowded 52-fund shallow-buffer field.

• XTR No cap on the gains. The hedge is bought with cash rather than funded by selling calls, so index rallies come through less the put premium and fees.sec.gov
• Costs 0.25%, well under half of what the defined-outcome funds it competes with typically charge for downside protection.
• Owns the roughly 500 S&P 500 stocks themselves, with the put position layered on top, rather than wrapping the index in a stack of options.sec.gov
• Rules-based and mechanical: puts are bought at 10% below the prevailing index level each quarter and held to expiration, with no manager guessing at timing.sec.gov

Worth knowing

• SEPT Upside is capped, and both cap and buffer apply across the full outcome period. Buy mid-period and your actual protection and ceiling differ from the headline terms.
• It targets the share-price return of the SPDR S&P 500 ETF Trust, so index dividends are not passed along, and the fund has not been paying out income.
• A small, thinly traded fund next to the category's giants, so spreads can be wider and limit orders matter more.

• XTR Protection starts about 10% down and resets quarterly, so garden-variety dips are absorbed in full and the gap widens if the market rallies mid-quarter.sec.gov
• Insurance is not free. The quarterly premium is a steady cost against plain index exposure, and in calm markets the puts expire worthless.sec.gov
• A small fund that trades thinly, so limit orders matter and subscale products carry more risk of being closed than the category's giants.

Full SEPT profile⁠

Full XTR profile⁠