PBOC

📎 Investment Objective

The PGIM S&P 500 Buffer 20 ETF - October 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.

✨ Key Features

• Seeks to provide a 20% buffer against losses in the S&P 500 Index over a one-year period
• Provides upside exposure to the S&P 500 Index's performance, subject to a cap
• Resets the buffer and cap annually in October
• Actively managed options-based strategy

⚠️ 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 risks as the underlying index
• Options risk: The ETF's use of options contracts exposes it to the risks associated with the options market, such as volatility and liquidity
• Cap risk: The ETF's upside participation is subject to a cap, which may limit its ability to fully capture the index's gains
• Counterparty risk: The ETF is exposed to the creditworthiness of the options counterparties it uses

👤 Best For

The PGIM S&P 500 Buffer 20 ETF - October may be suitable for investors seeking to participate in the upside of the S&P 500 Index while limiting their downside exposure. It may be particularly attractive to investors with a moderate risk tolerance who are looking for a buffer against market downturns.