Lincoln Financial Group Launches Innovative ETF-Linked Annuity Option
Lincoln Financial Group has launched a pioneering investment option within their fixed indexed annuities by linking returns to the Capital Group Dividend Value ETF (CGDV). This initiative marks the first instance of using a Capital Group ETF as a benchmark in a fixed indexed annuity, reinforcing Lincoln's exclusive position as a provider in this sphere. Available through Lincoln OptiBlend annuities, this development caters to investors seeking stable growth with robust risk management strategies.
Balanced Growth with Principal Protection
The new 1 Year Capital Group Dividend Value ETF Participation account enables investors to benefit from CGDV's performance by investing in established U.S. companies with promising dividends. While these investments aim to deliver growth potential, they maintain full downside protection, meeting the industry's evolving regulatory compliance requirements. Such a strategy addresses the increasing demand from payers and providers for products that balance equity-driven returns with financial safety.
Strategic Expansion in Annuity Products
Reflecting broader market trends, Lincoln Financial’s approach resonates with investors keen on equity returns without compromising principal protection, especially in volatile markets. With $19 billion under management, CGDV is Capital Group's largest active ETF, underscoring the firm's vigorous growth in the active ETF sector. This collaboration signals a shift towards integrating active management into the fixed indexed annuity market, which traditionally relied on passive strategies.
The new account enhances the portfolio options for annuity investors by offering diversified equity exposure with active management while preserving the principal protection inherent to fixed indexed annuities. This innovation exemplifies the dynamic evolution of insurance products, merging traditional underwriting techniques with cutting-edge investment strategies to meet complex regulatory and compliance needs.