MRCP
PGIM S&P 500 Buffer 12 ETF - March
📎 Investment Objective
The PGIM S&P 500 Buffer 12 ETF - March 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 - March
Performance
Price Chart
Investment Summary
📎 Investment Objective
The PGIM S&P 500 Buffer 12 ETF - March 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 holds a portfolio of S&P 500 stocks and also purchases options contracts to limit potential losses to 12% over a one-year period. This approach aims to provide investors with participation in S&P 500 gains while mitigating some of the downside risk.
✨ 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 with options contracts
- Resets the 12% buffer protection annually in March
⚠️ 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 and volatility
- Option risk: The use of options contracts to provide the buffer protection introduces additional risks, such as counterparty risk and the potential for the options to expire worthless
- Liquidity risk: As a newer ETF with low assets under management, it may have lower trading volume and liquidity compared to more established funds
- Tracking error risk: The ETF's performance may not perfectly track the S&P 500 Index due to the buffer protection strategy
👤 Best For
The PGIM S&P 500 Buffer 12 ETF - March may be suitable for investors seeking exposure to the S&P 500 Index with some 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.