PBMY
PGIM S&P 500 Buffer 20 ETF - May
📎 Investment Objective
The PGIM S&P 500 Buffer 20 ETF - May 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 - May
Performance
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Investment Summary
📎 Investment Objective
The PGIM S&P 500 Buffer 20 ETF - May 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 a combination of S&P 500 Index-linked options and cash equivalents to provide upside participation in the S&P 500 Index up to a cap, while limiting losses to 20% over a one-year period.
✨ Key Features
- Provides exposure to the S&P 500 Index with a 20% buffer against losses over a one-year period
- Utilizes a buffer protection strategy to limit downside risk
- Resets the buffer and upside cap annually in May
- Expense ratio of 0.00%
⚠️ Primary Risks
- Market risk: The ETF's performance is tied to the performance of the S&P 500 Index, and it is subject to the same market fluctuations
- Capped upside potential: The ETF's upside participation is capped, limiting the potential for gains
- Counterparty risk: The ETF's buffer protection strategy relies on the performance of options contracts, which carry counterparty risk
- Liquidity risk: As a new ETF, it may have lower trading volume and liquidity compared to more established funds
👤 Best For
The PGIM S&P 500 Buffer 20 ETF - May 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.