SIXP vs XTR

SIXPBAllianzIM U.S. Equity 6 Month Buffer10 Mar/Sep ETF

XTRCGlobal X S&P 500 Tail Risk ETF

In short

SIXP Ten percent of the downside absorbed, the upside capped, and the whole deal re-struck every six months instead of once a year. SIXP is the March/September dial in AllianzIM's semiannual buffer lineup.

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

SIXP The Fund is designed to match the share-price return of the SPDR S&P 500 ETF Trust at the end of each six-month Outcome Period, subject to an upside Cap. It also seeks to absorb the first 10% of the reference ETF’s losses.

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

• SIXP Absorbs the first 10% of the reference S&P 500 ETF's decline over each six-month outcome period, with the upside capped.
• Resets twice a year, in March and September, so the cap is re-struck against fresher pricing more often than in a standard 12-month buffer fund.
• 0.74% a year, a shade under the typical fee among shallow-buffer funds.
• A 1940 Act fund holding its own options package rather than a bank note, and it sits in the upper half of a crowded 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

• SIXP The cap is the price of the cushion, and each new cap is set at the reset, moving with volatility and rates. Enter mid-period and your cushion and ceiling differ from the stated terms.
• It targets the reference ETF's share-price return, so dividends aren't part of the deal, and this fund hasn't been paying distributions.
• A small, lightly traded fund next to the biggest buffer names, so spreads can be wider.

• 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 SIXP profile⁠

Full XTR profile⁠