PBJL
PGIM S&P 500 Buffer 20 ETF - July
📎 Investment Objective
The PGIM S&P 500 Buffer 20 ETF - July (PBJL) 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 - July
Performance
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Investment Summary
📎 Investment Objective
The PGIM S&P 500 Buffer 20 ETF - July (PBJL) 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 create a 20% buffer against losses over a one-year period. This strategy aims to provide upside participation in the S&P 500 Index while limiting downside risk.
✨ Key Features
- Seeks to limit downside risk to 20% over a one-year period
- Provides exposure to the S&P 500 Index
- Utilizes a buffer protection strategy with call and put options
- Resets the buffer protection annually in July
⚠️ Primary Risks
- Market risk: The ETF's performance is tied to the S&P 500 Index and is subject to market fluctuations
- Option risk: The use of options involves additional risks, such as counterparty risk and liquidity risk
- Concentration risk: The ETF is concentrated in large-cap U.S. equities
- Regulatory risk: Changes in laws or regulations could affect the ETF's ability to maintain its buffer protection strategy
👤 Best For
The PGIM S&P 500 Buffer 20 ETF - July 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.