AUGP
PGIM S&P 500 Buffer 12 ETF - August
📎 Investment Objective
The PGIM S&P 500 Buffer 12 ETF - August (AUGP) seeks to provide investors with a buffer against the first 12% of losses in the S&P 500 Index over a one-year period, while also providing upside exposure to the index's performance.
Overview
ETF tracking PGIM S&P 500 Buffer 12 ETF - August
Performance
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Investment Summary
📎 Investment Objective
The PGIM S&P 500 Buffer 12 ETF - August (AUGP) seeks to provide investors with a buffer against the first 12% of losses in the S&P 500 Index over a one-year period, while also providing upside exposure to the index's performance.
🎯 Investment Strategy
The ETF achieves its objective by investing in a portfolio of S&P 500 Index options that are designed to provide the desired buffer and upside exposure. The options are reset annually in August to maintain the 12% buffer.
✨ Key Features
- Provides a 12% buffer against losses in the S&P 500 Index over a one-year period
- Offers upside exposure to the S&P 500 Index's performance
- Resets the options portfolio annually in August to maintain the buffer
- Expense ratio of 0.00%
⚠️ Primary Risks
- Market risk: The ETF's performance is tied to the S&P 500 Index, and it is subject to the same market fluctuations as the underlying index
- Option-based risk: The ETF's performance is dependent on the performance of the options it holds, which can be volatile
- Liquidity risk: The ETF may have limited trading volume, which could affect its ability to be bought or sold at desired prices
- Counterparty risk: The ETF is exposed to the creditworthiness of the options counterparties
👤 Best For
The PGIM S&P 500 Buffer 12 ETF - August may be suitable for investors seeking exposure to the S&P 500 Index with a level of downside protection, particularly those with a moderate risk tolerance and a one-year investment horizon.