DECP
PGIM S&P 500 Buffer 12 ETF - December
📎 Investment Objective
The PGIM S&P 500 Buffer 12 ETF - December (DECP) seeks to provide investors with exposure to the S&P 500 Index while aiming to limit downside risk over a 12-month period.
Overview
ETF tracking PGIM S&P 500 Buffer 12 ETF - December
Performance
Price Chart
Investment Summary
📎 Investment Objective
The PGIM S&P 500 Buffer 12 ETF - December (DECP) seeks to provide investors with exposure to the S&P 500 Index while aiming to limit downside risk over a 12-month period.
🎯 Investment Strategy
The ETF uses an options-based strategy to provide a buffer against the first 12% of losses in the S&P 500 Index over a 12-month period. It does this by holding a portfolio of S&P 500 stocks and purchasing put options to help limit downside risk.
✨ Key Features
- Seeks to provide exposure to the S&P 500 Index with a 12% buffer against losses over a 12-month period
- Uses an options-based strategy to help limit downside risk
- Resets the buffer period annually in December
- Expense ratio of 0.00%
⚠️ Primary Risks
- Market risk: The ETF's performance is tied to the S&P 500 Index, and it will be subject to the same market fluctuations
- Option risk: The use of options introduces additional risks, such as counterparty risk and the potential for the options to expire worthless
- Reset risk: The buffer resets annually, so investors may not be protected from losses exceeding 12% in the period between resets
- Liquidity risk: As a new ETF, it may have lower trading volume and liquidity compared to more established funds
👤 Best For
This ETF may be suitable for investors seeking exposure to the S&P 500 with some downside protection, particularly those with a medium-term investment horizon and a moderate risk tolerance. However, investors should carefully consider the risks and limitations of the buffer strategy before investing.