At a glance
FLAO charges 0.74% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $8.5M in assets, the 8th largest of that group. Over the past year it returned +2.3% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds.
The short version
AllianzIM U.S. Equity 6 Month Floor5 Apr/Oct ETF (FLAO) uses options on the SPDR S&P 500 ETF Trust (SPY), aiming to match SPY's price gains up to a cap over six-month periods while limiting losses to 5% before fees. It may suit investors who rank loss protection ahead of growth. Its 0.74% fee undercuts similar buffer funds, but its 2.3% one-year return as of October 27, 2026, trailed all of them.
Price history
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FLAO +2.3% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FLAO official prospectus, to Dec 31, 2025 | — | +3.18% | — | — | — | +7.54% |
| FLAO price data to Oct 27, 2026 | +1.7% | +2.3% | — | — | — | +5.8% |
- Over the year to Oct 27, 2026, FLAO returned +2.3%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+3.4%); its best was 2025 (+3.4%).
- The deepest fall in its price history was 10.1% (Feb 19, 2025 to Apr 8, 2025), recovered by Dec 3, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +1.7% | — |
| 2025 | +3.4% | +3.18% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
What's inside
As of Jul 31, 2026, the fund held 0 securities; the ten largest made up 0% of assets.
| Holding | Weight |
|---|
By country
By asset type
What changed recently
- Over the three months to Jul 31, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.03%, +0.30%, +0.56%.
How it works
FLAO doesn't own stocks. It holds FLEX options, exchange-traded contracts with customized terms, on the SPDR S&P 500 ETF Trust (SPY), a unit investment trust tracking the S&P 500. A call is the right to buy at a set strike price; a put is the right to sell. As of July 31, 2026, it held three options, all expiring September 30, 2026: a call with a very low strike that moves almost in step with SPY, a purchased put that supplies the floor, and a sold call that sets the cap.
Each six-month outcome period runs April 1 to September 30 or October 1 to March 31. For full-period holders, the fund aims to match SPY's price change up to a cap, with losses limited to 5% before fees; the put is meant to cover losses beyond that. The cap resets before each period based on volatility, interest rates and other conditions. For October 2025 to March 2026 it was 5.95% before fees, or 5.58% after the 0.74% annual fee. The fund gives up SPY's dividends.
The options can be exercised only at expiration, so mid-period values can stray from the cap and floor, and anyone joining mid-period faces different limits. The Options Clearing Corporation guarantees the options; if it failed, losses could be large.
What it really costs
- FLAO charges 0.74% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $76 in the first year and $918 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| FLAO | $76 | $237 | $411 | $918 |
Structure and tax notes
- Organized as a unit investment trust: it cannot lend out its securities or reinvest dividends between payouts, which can create a small drag versus similar open-end ETFs.
- Uses options to limit losses within a range (the buffer) in exchange for a cap on gains over each outcome period; results depend on when you buy relative to the period start.
In a retirement portfolio
It aims to limit losses to 5% before fees over each six-month period, in exchange for a cap on gains.
FLAO could stand in for part of a stock allocation with smaller swings. It launched in March 2024, after the 2008, 2020 and 2022 downturns. Its only full calendar year, 2025, gained 3.18%. Its deepest drop was 10.1%, from February 19 to April 8, 2025; it took 7.9 months to recover, by December 3, 2025. That exceeded the 5% floor because the floor counts from each period's start and applies fully only at its end, so selling in a mid-period slump can lock in a bigger loss.
It has paid no distributions and forgoes SPY's dividends, so drawing cash means selling shares. Its 0.74% fee, $76 in the first year in the SEC's standard $10,000 example, is below the 0.86% average of similar buffer funds. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors willing to give up SPY gains above a six-month cap (5.95% before fees for October 2025–March 2026) for a 5% loss limit.
- Cost-conscious investors in buffer-style funds: its 0.74% fee is the lowest among similar buffer funds, which average 0.86%.
- Investors able to invest at a period's start (April 1 or October 1) and hold all six months, so the stated cap and floor apply.
Look elsewhere if
- Income seekers: FLAO has paid no distributions and does not receive the dividends SPY pays.
- Growth-focused investors: its one-year return was 2.3% as of October 27, 2026, versus 9.5% to 12.9% for similar buffer funds.
- Investors wary of very small funds, which may trade thinly or close: FLAO's net assets were about $8.5 million as of July 31, 2026.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| FLAO this fund | 0.74% | $8.5M | +2.3% | — |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Can you lose more than 5% in FLAO?
Yes. The 5% floor is a target, before fees, for someone who invests at the start of a six-month outcome period and holds to the end. Losses beyond the first 5% are meant to be offset by a put option, but the prospectus warns there is no guarantee and a shareholder could lose their entire investment. Mid-period values can also fall further: FLAO's deepest drop was 10.1%, from February 19 to April 8, 2025.
Does FLAO pay dividends?
No. FLAO has paid no distributions. It holds options on SPY rather than SPY shares, and the prospectus says it will not receive or benefit from SPY's dividend payments. Its target return is based on SPY's share price alone, so over time it gives up the dividend portion of the S&P 500's total return. Investors who need regular cash from this holding would have to sell shares.
What is FLAO's expense ratio?
FLAO's expense ratio is 0.74% a year, a single all-in (unitary) management fee, according to its prospectus filed February 27, 2026. In the SEC's standard example of $10,000 earning 5% a year, costs would total about $76 over one year, $237 over three, $411 over five and $918 over ten. That is the lowest among similar buffer funds, which average 0.86%. Brokerage commissions, trading fees and extraordinary expenses come on top.
What's the difference between FLAO and BUFR?
They differ in approach, cost, size and results. FLAO targets a floor: a maximum loss of 5% before fees per six-month period. A buffer, as in FT Vest Laddered Buffer ETF (BUFR), absorbs a set slice of losses, and investors take any beyond it. FLAO charges 0.74% versus BUFR's 0.95%. BUFR held $10.5 billion as of August 31, 2026, against FLAO's $8.5 million as of July 31, 2026. Over one year to October 27, 2026, BUFR returned 11.6% and FLAO 2.3%.
What happens if you invest in FLAO mid-period?
Your results will differ from the stated cap and floor. Both are set from prices at the start of each six-month period, which begins April 1 or October 1. If SPY has already risen when you invest, you have less room left before the cap and more to lose before the floor applies. If SPY has fallen, the reverse is true. Mid-period prices may also move differently from SPY, because the fund's FLEX options can be exercised only at expiration.