OCTP
PGIM S&P 500 Buffer 12 ETF - October
📎 Investment Objective
The PGIM S&P 500 Buffer 12 ETF - October 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 - October
Performance
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Investment Summary
📎 Investment Objective
The PGIM S&P 500 Buffer 12 ETF - October 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 on the S&P 500 Index. The options are structured to provide the 12% buffer against losses and participate in the index's upside performance 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
- Participates in the upside performance of the S&P 500 Index up to a cap
- Resets the buffer and upside cap annually in October
- Expense ratio of 0.00%
⚠️ Primary Risks
- Market risk: The ETF's performance is tied to the S&P 500 Index and is subject to market fluctuations
- Capped upside potential: The ETF's upside participation is limited by the annual cap, which may be lower than the index's full return
- Counterparty risk: The ETF's options-based strategy exposes it to the creditworthiness of the options counterparties
- Liquidity risk: The ETF may have limited trading volume, which could affect its ability to be bought or sold at desired prices
👤 Best For
The PGIM S&P 500 Buffer 12 ETF - October may be suitable for investors seeking to participate in the upside of the S&P 500 Index while limiting their downside exposure, particularly those with a medium-term investment horizon and a moderate risk tolerance.