Exchange-traded funds (ETFs) continue their rapid evolution, offering financial advisors new tools to meet their clients’ needs in uncertain markets. One of the industry’s foremost experts, Charles Champagne, Head of ETF Strategy at Allianz Investment Management (AllianzIM), shared his expertise and vision at the 2025 Future Proof Festival. His insights reveal how AllianzIM’s unique approach to risk-managed ETFs is helping advisors bring both innovative solutions and greater confidence to client portfolios.
A Journey Rooted in ETF Innovation
Charles Champagne’s career in ETFs began in 2009, building deep expertise with some of the largest ETF providers. His journey took a pivotal turn in 2022 when he joined AllianzIM to lead ETF strategy for a newer issuer aiming to bring differentiated solutions to market.
Drawing on more than 15 years of experience across ETF capital markets, strategy, and product development, Champagne spearheads AllianzIM’s efforts to deliver next-generation ETFs tailored to the challenges advisors and investors face today.
AllianzIM’s Distinctive Edge in Risk Management
In a crowded ETF marketplace, AllianzIM distinguishes itself through a fully integrated approach to risk management. Champagne explained, “We are not using some advisors to run our hedging or do our derivative risk management. We are doing that all in-house. . . We have a very strong background in derivatives and derivative trading. ”
This proprietary in-house platform supports AllianzIM's suite of buffered and defined outcome ETFs. Unlike some competitors who outsource derivative and hedging functions, AllianzIM’s direct control over risk management enables more precise alignment with product objectives and market conditions. This core strength contributes to delivering risk-mitigated products critical for advisor portfolios navigating volatility.
Designing Products Advisors Trust
The impetus behind AllianzIM’s ETF innovation ties deeply to its history in insurance and risk-managed products. Champagne described the transition to ETFs as a natural extension: “At the onset, it was really driven by our insurance business. . . We want to leverage our capabilities there and offer similar risk-managed products in the ETF wrapper. ”
The team’s central philosophy revolves around delivering thoughtful, defensible hedging tools for advisor portfolios. Champagne emphasized, “Our primary core belief is risk-managed products. . . We’re looking to provide advisors with some type of hedge vehicle that they can add to their portfolio, to be assured of some element of risk management. ”
These products are designed not simply to track benchmarks but to help advisors proactively manage downside risk and reduce portfolio volatility in uncertain markets.
Navigating Market Volatility with Buffer ETFs
With equity and fixed income markets increasingly correlated in downturns, traditional diversification strategies alone may not suffice. Champagne highlighted the value buffer ETFs provide in this context: “When advisors and investors look to diversify their portfolio to hedge against equity risk, they typically go to fixed income, but fixed income hasn’t been that protection they were seeking in their portfolio. ”
AllianzIM’s buffer ETFs, such as the recently launched AllianzIM U. S. Equity Buffer100 Protection ETF (AIOO) and the 15% buffer ETF (QBSF), offer defined downside protection while allowing participation in market upside. “You know you’re going to receive that risk management. We typically see advisors use this as a hedge to their equity sleeve. We also see advisors moving more of this type of product into their fixed income bucket," Champagne said.
These ETFs feature quarterly resets that provide a timely refresh of downside buffers and upside participation rates, helping portfolios adapt dynamically to market shifts.
The Moment of Truth: Track Record and Educating Advisors
Education remains paramount to gaining advisor trust in these innovative structures. Champagne stressed, “Understand the product that you’re buying is key and looking at the track record. ”
With more than five years in the market, AllianzIM’s buffered ETFs have weathered challenging periods, including the difficult markets of 2022 and the rebound in 2023. “If you look at some of the previous periods, these products do what they’re designed to do. That’s the proof in the pudding,” Champagne noted. For instance, “In 2022, if you added a 20% buffer, you were protected. In 2023 you saw how the option structure works and it goes all the way up to that cap. ”
This demonstrated consistency strengthens advisor confidence, helping them to communicate the value of risk-managed ETFs to clients seeking smoother investment journeys.
The Future: Growing ETF Adoption and Risk Solutions
Looking ahead, Champagne expects ETF growth and competitive innovation to continue reshaping the landscape. “The ETF industry obviously continues to grow at a great pace. There’s almost 10 issuers now in defined outcome,” he said.
AllianzIM aims to build on its core strengths by expanding diverse ETF offerings that enable advisors to manage risk across equity and fixed income segments. “Make sure that we have products for good advisors needs in all areas of the risk management space and essentially the equity space,” Champagne explained.
Driven by Purpose and Innovation
Beyond strategy and product development, Champagne’s motivation comes from seeing real-world impact. “Just providing that assurance to that portfolio that they’re going to get protection and the diversification that they want. That’s what makes me excited about this,” he shared.
He acknowledged some investors’ apprehension about options-based strategies but believes education and transparent outcomes dispel fears. “Some people get a little gun-shy about the option structure because they are options and it can be a scary word, but to show them how we create these structures and work, and then see that in action, that’s motivating. ”
Conclusion
As financial advisors seek tools to balance growth and protection, AllianzIM and Charles Champagne stand out as leaders in risk-managed ETFs. With proprietary hedging expertise, thoughtfully designed buffer products, and a commitment to advisor education, AllianzIM is empowering advisors to build portfolios prepared for whatever markets bring.
The evolving ETF landscape demands both innovation and clarity—qualities AllianzIM embodies through Champagne’s leadership and its growing lineup of differentiated ETF solutions. Advisors looking to elevate their portfolio management strategies will find valuable partners in AllianzIM’s market-tested, risk-smart ETFs.
