Host Ryan Nauman speaks with Charles Champagne, Head of ETF Strategy at Allianz Investment Management, about using defined outcome (buffered) ETFs to manage downside risk after a strong multi-year run in equities. Champagne explains how these ETFs replicate long-used annuity-style risk-management techniques but in an ETF wrapper that offers daily liquidity, transparency, and flexibility for advisors. They discuss why risk management should be part of portfolio construction, how buffers can help during market disruptions and drawdowns, and why 2022 highlighted limits of traditional diversification when both stocks and bonds fell together. Champagne describes an uncapped strategy with a 15% downside buffer that uses options to create a hurdle rate while preserving upside participation, and notes ongoing innovation as the category matures.
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Learn more about Allianz Investment Management here.
00:00 Podcast Welcome
01:38 Meet Charles Champagne
01:59 Allianz And Defined Outcome ETFs
03:51 Why Risk Management Now
05:27 Uncapped Buffer Strategy
06:31 Biggest Risks And 2022 Lesson
09:29 Portfolio Implementation Ideas
10:49 Where The Category Is Heading
12:09 Behavioral Benefits For Clients
13:43 Wrap Up And Resources
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