BUFP
PGIM Laddered S&P 500 Buffer 12 ETF
📎 Investment Objective
The PGIM Laddered S&P 500 Buffer 12 ETF (BUFP) seeks to provide investors with exposure to the S&P 500 Index while aiming to limit downside risk through a series of 'buffer' levels.
Overview
ETF tracking PGIM Laddered S&P 500 Buffer 12 ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The PGIM Laddered S&P 500 Buffer 12 ETF (BUFP) seeks to provide investors with exposure to the S&P 500 Index while aiming to limit downside risk through a series of 'buffer' levels.
🎯 Investment Strategy
The ETF achieves its objective by investing in a portfolio of S&P 500 Index-linked options contracts, structured to provide a 12% buffer against losses in the underlying index over a 1-year period. The fund 'ladders' these option contracts, with a new 1-year contract being added each month, providing a continuous series of overlapping 12-month buffer periods.
✨ Key Features
- Seeks to limit downside risk to the S&P 500 Index by providing a 12% buffer against losses over a 1-year period
- Utilizes a 'laddered' approach, adding a new 1-year buffer contract each month for continuous coverage
- Provides exposure to the performance of the large-cap S&P 500 Index
- Expense ratio of 0.00%
⚠️ Primary Risks
- Market risk: The fund's value will fluctuate with changes in the S&P 500 Index
- Option-based strategy risk: The effectiveness of the buffer protection is dependent on the performance of the option contracts
- Liquidity risk: The fund may experience reduced liquidity, particularly during periods of market stress
- Counterparty risk: The fund is exposed to the creditworthiness of the option contract counterparties
👤 Best For
The PGIM Laddered S&P 500 Buffer 12 ETF may be suitable for investors seeking exposure to the large-cap US equity market with a level of downside protection, particularly those with a medium-term investment horizon and moderate risk tolerance.