PBFB
PGIM S&P 500 Buffer 20 ETF - February
📎 Investment Objective
The PGIM S&P 500 Buffer 20 ETF - February 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.
Overview
ETF tracking PGIM S&P 500 Buffer 20 ETF - February
Performance
Price Chart
Investment Summary
📎 Investment Objective
The PGIM S&P 500 Buffer 20 ETF - February 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.
🎯 Investment Strategy
The ETF achieves its objective by investing in a portfolio of S&P 500 index options that are designed to provide the desired buffer and upside exposure. The fund resets its buffer and upside parameters annually in February.
✨ Key Features
- Provides a 20% buffer against losses in the S&P 500 Index over a one-year period
- Offers upside exposure to the S&P 500 Index's performance
- Resets its buffer and upside parameters annually in February
- Expense ratio of 0.00%
⚠️ Primary Risks
- Market risk: The ETF's performance is tied to the S&P 500 Index, and it will be subject to the same market fluctuations
- Derivative risk: The fund's use of options contracts carries the risk of potential losses and counterparty risk
- Reset risk: The fund's buffer and upside parameters reset annually, which may not align with an investor's desired holding period
- Liquidity risk: As a new fund with low assets under management, the ETF may have limited trading volume and liquidity
👤 Best For
This ETF may be suitable for investors seeking downside protection in the S&P 500 Index while still maintaining some upside exposure. It could be a useful component of a diversified portfolio, particularly for investors with a one-year investment horizon who are comfortable with the fund's reset mechanism and derivative-based strategy.