In the persistent search for financial instruments that can simultaneously foster growth and shield against market downturns, investors have often faced a difficult trade-off between aggressive equity participation and the safety of principal protection. Lincoln Financial has now stepped into this arena with a groundbreaking solution designed to bridge that very gap. The company has officially unveiled a new investment option within its fixed indexed annuity portfolio, introducing the first-ever product that directly links to an actively managed exchange-traded fund. This launch marks a significant innovation in the annuity space, offering a novel structure that aims to provide clients with the potential for equity-driven returns while maintaining the foundational security that annuities are known for. By forging this new path, Lincoln is directly responding to a sophisticated investor demand for more dynamic, yet protected, retirement planning tools in an increasingly complex economic environment.
A New Frontier in Annuity Investing
At the core of this initiative is the “1 Year Capital Group Dividend Value ETF Participation account,” an exclusive option available through Lincoln OptiBlend fixed indexed annuities. This structure is pioneering, making Lincoln Financial the sole provider to offer a fixed indexed annuity (FIA) with performance tied directly to the Capital Group Dividend Value ETF (CGDV). The mechanics are designed to offer the best of both worlds: policyholders can participate in the potential upside of an actively managed ETF, which seeks to outperform passive benchmarks, without exposing their initial investment to market losses. The product guarantees 100% downside protection, a hallmark of fixed indexed annuities, ensuring that the principal remains secure regardless of the ETF’s performance. This innovative blend of features directly addresses the core concerns of conservative investors who are hesitant to fully embrace equities but still seek returns that can outpace inflation and build long-term wealth, creating a unique vehicle for protected growth.
The introduction of this product signals a broader, more significant trend within the financial services industry: the deliberate integration of active management into the annuity sector. For years, the FIA market has been largely dominated by strategies linked to passive indexes, such as the S&P 500. While these options provide market exposure, they lack the potential for outperformance that skilled active management can offer. Lincoln’s latest offering directly challenges this paradigm by catering to a growing cohort of investors and financial advisors who are looking for ways to access the sophisticated strategies of institutional money managers within a protected product structure. This demand has been amplified by recent market volatility, which has underscored the appeal of having a professional management team navigating market complexities, making tactical adjustments, and selecting securities with the potential to generate alpha, all while the investor’s principal is shielded from risk.
Strategic Alliance and Market Credibility
This venture is underpinned by a robust and long-standing partnership between Lincoln Financial and Capital Group, two titans of the financial industry. According to Stephen Turer of Lincoln Financial, the new annuity option was meticulously developed to satisfy the dual mandate from clients who desire both robust protection and meaningful growth potential. The product is seen not as a mere addition but as a direct response to clear market feedback. On the other side of the partnership, Jason A. Uberti of Capital Group emphasized that this launch is a natural evolution of their collaborative efforts. He framed the initiative as a strategic move to extend the reach of their proven active management expertise into the annuity market, providing a new segment of investors with access to their flagship strategies. This alignment of vision highlights a shared commitment to innovation and to meeting the evolving needs of retirement savers in a dynamic financial landscape.
The credibility of the new annuity option is significantly bolstered by the strength of its underlying investment, the Capital Group Dividend Value ETF (CGDV). This is not a nascent or unproven fund; it is Capital Group’s largest active ETF, with more than $19 billion in assets under management. The fund has earned a prestigious Morningstar Medalist Gold rating, a testament to its quality and the strength of its management team. Furthermore, CGDV has a documented history of outperforming its benchmark, the S&P 500, demonstrating the potential value of its active approach. The reputation of the issuer, Capital Group, adds another layer of confidence. As a firm managing approximately $3 trillion in assets, its deep expertise is widely recognized. This was recently affirmed when Capital Group was named ETF Issuer of the Year by etf.com in 2025, underscoring its leadership and innovation in the rapidly growing ETF space. This solid foundation provides a powerful assurance for investors considering the new offering.
A New Paradigm for Retirement Savings
Lincoln Financial’s introduction of an actively managed ETF option within its FIA portfolio represented a pivotal moment for the retirement industry. The launch effectively broadened the horizon of possibilities for annuity investors, who were previously limited primarily to passive index-linked strategies. By creating a vehicle that provided direct exposure to a diversified, actively managed equity strategy while retaining the essential safety net of 100% principal protection, the company established a new benchmark. This development not only provided a unique solution for investors navigating the complex balance between risk and reward but also signaled a potential industry-wide shift toward more dynamic and sophisticated annuity products. It illustrated a clear path for integrating the alpha-seeking potential of active management with the security-focused structure of fixed indexed annuities, ultimately reshaping the conversation around retirement planning.
