JUNP
PGIM S&P 500 Buffer 12 ETF - June
📎 Investment Objective
The PGIM S&P 500 Buffer 12 ETF - June (JUNP) 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 - June
Performance
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Investment Summary
📎 Investment Objective
The PGIM S&P 500 Buffer 12 ETF - June (JUNP) 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 options contracts on the S&P 500 Index. The options are structured to provide the 12% buffer against losses, while allowing for participation in the index's gains up to a cap.
✨ Key Features
- Seeks to provide 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, subject to a cap
- Resets the buffer and cap annually in June
- 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
- Capped upside potential: The ETF's upside exposure is limited by the annual cap, which may be lower than the index's full return
- Counterparty risk: The ETF's performance is dependent on the ability of the options counterparties to fulfill their obligations
- Liquidity risk: The ETF may have limited trading volume, which could affect an investor's ability to buy or sell shares
👤 Best For
The PGIM S&P 500 Buffer 12 ETF - June may be suitable for investors seeking downside protection in the S&P 500 Index, while still maintaining some upside exposure. It could be a useful component of a diversified portfolio, particularly for investors with a moderate risk tolerance and a one-year investment horizon.