PBDE

📎 Investment Objective

The PGIM S&P 500 Buffer 20 ETF - December (PBDE) seeks to provide investors with a buffer against the first 20% of losses in the S&P 500 Index over a one-year period, while also providing upside exposure to the index's performance.

✨ Key Features

• Seeks to provide a 20% buffer against losses in the S&P 500 Index over a one-year period
• Provides upside exposure to the S&P 500 Index's performance up to a certain cap
• Resets the buffer and cap on an annual basis in December
• Relatively low expense ratio of 0.00%

⚠️ Primary Risks

• Market risk: The fund's performance is tied to the performance of the S&P 500 Index, and it is subject to the same market risks as the underlying index
• Capped upside potential: The fund's upside exposure is limited by the cap, which may be lower than the index's actual performance
• Liquidity risk: The fund's options-based strategy may result in lower liquidity compared to traditional index funds
• Counterparty risk: The fund is exposed to the creditworthiness of the options counterparties

👤 Best For

The PGIM S&P 500 Buffer 20 ETF - December may be suitable for investors seeking to mitigate downside risk in their equity exposure, while still participating in the potential upside of the S&P 500 Index. It may be particularly appealing to more conservative investors or those nearing retirement who are looking to manage their portfolio's volatility.