PBMR
PGIM S&P 500 Buffer 20 ETF - March
📎 Investment Objective
The PGIM S&P 500 Buffer 20 ETF - March 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 - March
Performance
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Investment Summary
📎 Investment Objective
The PGIM S&P 500 Buffer 20 ETF - March 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 provide a buffer against the first 20% of losses in the underlying index over a one-year period. This strategy aims to provide investors with 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 using options
- Resets the buffer protection annually in March
⚠️ 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 as the underlying index.
- Option-related risks: The use of options may result in increased volatility and the potential for losses beyond the initial investment.
- Liquidity risk: The ETF may have limited trading volume, which could affect its ability to be bought or sold at desired prices.
- Counterparty risk: The ETF is exposed to the creditworthiness of the option counterparties, which could impact the fund's performance.
👤 Best For
The PGIM S&P 500 Buffer 20 ETF - March 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.