PBFR
PGIM Laddered S&P 500 Buffer 20 ETF
📎 Investment Objective
The PGIM Laddered S&P 500 Buffer 20 ETF seeks to provide investors with exposure to the S&P 500 Index while aiming to limit downside risk through a series of 'buffer' levels.
Overview
ETF tracking PGIM Laddered S&P 500 Buffer 20 ETF
Performance
Price Chart
Investment Summary
📎 Investment Objective
The PGIM Laddered S&P 500 Buffer 20 ETF seeks to provide investors with exposure to the S&P 500 Index while aiming to limit downside risk through a series of 'buffer' levels.
🎯 Investment Strategy
The ETF achieves its objective by investing in a portfolio of S&P 500 index options contracts that are designed to provide a 20% buffer against losses in the underlying index. The options are structured in a 'laddered' approach, with different expiration dates, to provide consistent downside protection.
✨ Key Features
- Seeks to limit downside risk to the S&P 500 Index by up to 20%
- Utilizes a laddered options strategy to provide consistent buffer protection
- Provides exposure to the large-cap U.S. equity market through the S&P 500 Index
- Expense ratio of 0.00%
⚠️ Primary Risks
- Market risk: The ETF's value will fluctuate with changes in the S&P 500 Index
- Option strategy risk: The options-based approach may not perform as expected
- Liquidity risk: The ETF may have limited trading volume or lack an active market
- Counterparty risk: The ETF is exposed to the creditworthiness of its options counterparties
👤 Best For
This ETF may be suitable for investors seeking large-cap U.S. equity exposure with a degree of downside protection, particularly those with a moderate risk tolerance and a medium-term investment horizon.