PBAU
PGIM S&P 500 Buffer 20 ETF - August
📎 Investment Objective
The PGIM S&P 500 Buffer 20 ETF - August (PBAU) seeks to provide investors with exposure to the S&P 500 Index while aiming to limit downside risk to 20% over a one-year period.
Overview
ETF tracking PGIM S&P 500 Buffer 20 ETF - August
Performance
Price Chart
Investment Summary
📎 Investment Objective
The PGIM S&P 500 Buffer 20 ETF - August (PBAU) seeks to provide investors with exposure to the S&P 500 Index while aiming to limit downside risk to 20% over a one-year period.
🎯 Investment Strategy
The ETF uses a buffer protection strategy, where it purchases S&P 500 Index call options and sells S&P 500 Index put options to provide a buffer against the first 20% of losses in the underlying index over a one-year period. This strategy is reset annually in August.
✨ Key Features
- Seeks to limit downside risk to 20% over a one-year period
- Provides exposure to the S&P 500 Index
- Resets the buffer protection strategy annually in August
- Relatively low expense ratio of 0.00%
⚠️ Primary Risks
- Market risk: The ETF's performance is tied to the performance of the S&P 500 Index, and it is subject to the same market fluctuations.
- Option-related risks: The use of options involves additional risks, such as counterparty risk and the potential for the options to expire worthless.
- Liquidity risk: As a new ETF, 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 20 ETF - August 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.