PBNV
PGIM S&P 500 Buffer 20 ETF - November
📎 Investment Objective
The PGIM S&P 500 Buffer 20 ETF - November (PBNV) 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 - November
Performance
Price Chart
Investment Summary
📎 Investment Objective
The PGIM S&P 500 Buffer 20 ETF - November (PBNV) 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 with a 20% buffer to limit potential losses. This approach is designed to provide upside participation in the S&P 500 Index, while protecting against the first 20% of losses over a one-year period.
✨ 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 to manage risk
- Resets the buffer protection annually in November
⚠️ 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 and volatility
- Derivative risk: The use of options and other derivatives can introduce additional risks, such as counterparty risk and liquidity risk
- Concentration risk: The ETF is focused on the S&P 500 Index, which means it has limited diversification compared to a more broad-based fund
- Reset risk: The buffer protection resets annually, which means investors may be exposed to more risk in the period leading up to the reset
👤 Best For
The PGIM S&P 500 Buffer 20 ETF - November may be suitable for investors who are seeking exposure to the S&P 500 Index with some downside protection, and who have a medium-term investment horizon. Investors should be comfortable with the risks associated with the use of derivatives and the potential for the buffer protection to reset annually.