JULP
PGIM S&P 500 Buffer 12 ETF - July
📎 Investment Objective
The PGIM S&P 500 Buffer 12 ETF - July (JULP) seeks to provide investors with exposure to the S&P 500 Index while aiming to limit downside risk to 12% over a one-year period.
Overview
ETF tracking PGIM S&P 500 Buffer 12 ETF - July
Performance
Price Chart
Investment Summary
📎 Investment Objective
The PGIM S&P 500 Buffer 12 ETF - July (JULP) seeks to provide investors with exposure to the S&P 500 Index while aiming to limit downside risk to 12% over a one-year period.
🎯 Investment Strategy
The ETF uses a buffer protection strategy, where it purchases S&P 500 Index options to provide a 12% buffer against losses over a one-year period. This aims to limit downside risk while allowing for participation in the upside of the S&P 500 Index.
✨ Key Features
- Seeks to limit downside risk to 12% over a one-year period
- Provides exposure to the S&P 500 Index
- Utilizes a buffer protection strategy using S&P 500 Index options
- Resets the buffer protection annually in July
⚠️ Primary Risks
- Market risk: The ETF's performance is tied to the S&P 500 Index, and it is subject to the overall market's fluctuations
- Option risk: The use of options to implement the buffer protection strategy carries inherent risks, such as the potential for losses if the options expire out of the money
- Liquidity risk: The ETF may have lower trading volume and liquidity compared to the underlying S&P 500 Index
- Concentration risk: The ETF is focused on the large-cap U.S. equity market and may be less diversified than a broader market index fund
👤 Best For
The PGIM S&P 500 Buffer 12 ETF - July 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. It may be most appropriate as a core equity holding or as a complement to a diversified portfolio.