NOVP
PGIM S&P 500 Buffer 12 ETF - November
📎 Investment Objective
The PGIM S&P 500 Buffer 12 ETF - November (NOVP) seeks to provide investors with exposure to the S&P 500 Index while providing a buffer against the first 12% of losses over a one-year period.
Overview
ETF tracking PGIM S&P 500 Buffer 12 ETF - November
Performance
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Investment Summary
📎 Investment Objective
The PGIM S&P 500 Buffer 12 ETF - November (NOVP) seeks to provide investors with exposure to the S&P 500 Index while providing a buffer against the first 12% of losses over a one-year period.
🎯 Investment Strategy
The ETF achieves its objective by investing in a portfolio of S&P 500 stocks and options contracts designed to provide the buffer against the first 12% of losses. The options strategy is reset annually in November.
✨ Key Features
- Provides exposure to the S&P 500 Index with a 12% buffer against losses over a one-year period
- Options-based strategy is reset annually in November
- Expense ratio of 0.00%
- Relatively new fund with limited performance history
⚠️ Primary Risks
- Market risk - the value of the ETF's holdings may decline due to general market conditions
- Derivatives risk - the options-based strategy exposes the fund to the risks associated with derivative instruments
- Limited performance history - with less than a year of returns, it's difficult to evaluate the fund's long-term viability
- Liquidity risk - as a new fund, trading volume and liquidity may be limited
👤 Best For
This ETF may be suitable for investors seeking S&P 500 exposure with some downside protection, particularly those with a medium-term investment horizon and moderate risk tolerance. However, the limited performance history means it may not be appropriate for all investors.