At a glance
OCTW charges 0.74% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $319.4M in assets, the 8th largest of that group. Over the past year it returned +8.9% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned +11.4% a year.
The short version
AllianzIM U.S. Large Cap Buffer20 Oct ETF (OCTW) holds FLEX options on the SPDR S&P 500 ETF Trust (SPY). It aims to match SPY's price return over one-year periods that start each October 1, with a buffer against the first 20% of losses and a cap on gains. Its fee is 0.74% a year, the lowest of eight buffer funds compared. Its capped upside also left it with the lowest one- and three-year returns of the group as of October 27, 2026.
Price history
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OCTW +8.9% 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 | |
|---|---|---|---|---|---|---|
| OCTW official prospectus, to Dec 31, 2025 | — | +9.63% | — | +8.51% | — | +8.84% |
| OCTW price data to Oct 27, 2026 | +8.3% | +8.9% | +11.4% | — | — | +11.3% |
- Over the year to Oct 27, 2026, OCTW returned +8.9%, 8th of 8 among similar funds.
- Its worst full calendar year was 2024 (+8.7%); its best was 2023 (+17.6%).
- The deepest fall in its price history was 8.4% (Feb 18, 2025 to Apr 8, 2025), recovered by Jun 3, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +8.3% | — |
| 2025 | +9.7% | +9.63% |
| 2024 | +8.7% | +8.54% |
| 2023 | +17.6% | +18.03% |
| 2022 | — | +0.46% |
| 2021 | — | +6.63% |
| 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 | Not in the price data, which starts Oct 31, 2022 |
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 withdrew a net $256.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.69%, +0.23%, +0.67%.
How it works
OCTW does not own stocks. Almost all of its money goes into FLEX options. These are exchange-traded options whose strike prices and expiration dates can be customized. The options are on SPY, a fund that tracks the S&P 500. The goal is to match SPY's share price return over each Outcome Period, which runs from October 1 to September 30. Gains are capped and the first 20% of losses is buffered. The fund does not receive SPY's dividends.
As of July 31, 2026, the fund held four options, all expiring September 30, 2026. A call with a $5 strike made up about 103% of assets and moves almost exactly with SPY. The fund bought a put at $666.25 and sold one at $532.94. Together, those two puts absorb losses from 0% down to 20%. A call sold at $734.73 set the ceiling. For October 1, 2025 to September 30, 2026, the cap was 10.29% before fees and 9.55% after the 0.74% fee. The buffer was 19.26% after fees.
A new cap is set each year at the end of September. It depends on market volatility and interest rates, and it can change a lot. The stated results apply only to shares held for the whole period. If you buy or sell partway through, your results will differ. Losses beyond the buffer pass through in full. The Options Clearing Corporation guarantees the options.
What it really costs
- OCTW 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 |
|---|---|---|---|---|
| OCTW | $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 trades away part of the stock market's upside to absorb the first 20% of losses in each one-year period, so its swings have been far smaller than the stock market's.
OCTW launched in September 2020, so it missed the 2008 crisis and the 2020 COVID crash. In the 2022 bear market, its prospectus shows a 0.46% return for the full year. That is its worst calendar year. Its worst quarter was the one ending June 30, 2022, at -5.05%. Its price history starts in October 2022. Since then, its deepest drop was 8.4%, from February 18 to April 8, 2025, and it was back to its old high by June 3, 2025. Smaller drops like these could make it easier to sell shares in a bad year. The trade-offs: it pays no income, it gives up SPY's dividends, and losses beyond 20% are not buffered. It costs 0.74% a year, or $76 on $10,000 in the first year under the SEC's standard example. Past results don't predict future ones. A plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Retirees able to hold from October 1 to September 30, over which it aims to absorb the first 20% of S&P 500 ETF (SPY) losses.
- Investors wanting a smoother ride: it gained 0.46% in 2022's bear market, and fell no more than 8.4% between October 2022 and October 2026.
- Cost-conscious buffer buyers: its 0.74% annual fee ($76 in year one on $10,000, per the SEC example) undercut seven similar buffer ETFs averaging 0.86%.
Look elsewhere if
- Retirees needing income: the fund has recorded no distributions, and it does not receive SPY's dividends, so returns come only from price changes.
- Growth seekers: gains were capped at 9.55% after fees for the outcome period ending September 30, 2026, and the cap resets every October.
- Investors comparing buffer funds: its 8.9% one-year return trailed all seven similar ETFs, which ranged from 9.5% to 12.9%, as of October 27, 2026.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| OCTW this fund | 0.74% | $319.4M | +8.9% | +11.4% |
| 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
Does OCTW pay dividends?
No. The fund has recorded no distributions. It holds options on SPY, not SPY shares, so it does not receive the dividends SPY pays. Its goal is to match SPY's price return, not its total return including dividends. Over time, missing those dividends adds up. That is a real cost, on top of the 0.74% annual fee. Income-focused investors may want to compare it with funds built to pay out income.
How does the OCTW buffer work?
OCTW aims to absorb the first 20% of SPY's price losses over each period from October 1 to September 30. It does this with a pair of put options. As of July 31, 2026, it had bought a put at $666.25 and sold one at $532.94, 20% lower. After the fee, the buffer was 19.26%. Losses beyond 20% pass through in full. If you buy partway through a period, you may get less protection, or none.
What is the cap on OCTW?
For the period from October 1, 2025 to September 30, 2026, the cap was 10.29% before fees and 9.55% after the 0.74% management fee. If SPY rose more than that, OCTW holders did not share in the extra gain. A new cap is set at the end of each September based on volatility and interest rates. It can change a lot from year to year, so the latest figure is worth checking before buying.
OCTW vs BUFD: what's the difference?
Both are buffer funds, but they differ on cost and results. OCTW charges 0.74% a year and BUFD (FT Vest Laddered Deep Buffer ETF) charges 0.95%. As of October 27, 2026, BUFD returned 9.5% over one year and 13.9% a year over three years. OCTW returned 8.9% and 11.4%. BUFD is far larger, with about $2.0 billion in net assets versus OCTW's $319 million. Their buffer levels and structures differ, so each prospectus is worth reading.
How has OCTW performed over five years?
OCTW returned 8.51% a year over the five years to December 31, 2025, according to its prospectus. Since its September 2020 launch, it returned 8.84% a year. By calendar year, it returned 6.63% in 2021, 0.46% in 2022, 18.03% in 2023, 8.54% in 2024 and 9.63% in 2025. Its strongest quarter was the one ending December 31, 2023, at 5.64%. Its weakest was the one ending June 30, 2022, at -5.05%.