PBJN
PGIM S&P 500 Buffer 20 ETF - June
📎 Investment Objective
The PGIM S&P 500 Buffer 20 ETF - June 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 - June
Performance
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Investment Summary
📎 Investment Objective
The PGIM S&P 500 Buffer 20 ETF - June 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 exposure levels annually in June.
✨ 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 exposure levels annually in June
- Designed as a risk management tool for investors seeking to limit downside risk
⚠️ Primary Risks
- Market risk: The ETF's performance is tied to the S&P 500 Index, and it is subject to the same market fluctuations
- Concentration risk: The ETF is heavily concentrated in the large-cap U.S. equity market
- Derivatives risk: The use of options contracts exposes the fund to the risks associated with derivative instruments
- Reset risk: The annual reset of the buffer and exposure levels may not align with an investor's desired risk profile
👤 Best For
This ETF may be suitable for investors who are seeking to limit their downside risk in the U.S. large-cap equity market, while still maintaining some upside exposure. It can be a useful tool for portfolio diversification and risk management, particularly for investors with a medium-term investment horizon.