PBSE
PGIM S&P 500 Buffer 20 ETF - September
📎 Investment Objective
The PGIM S&P 500 Buffer 20 ETF - September (PBSE) 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 - September
Performance
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Investment Summary
📎 Investment Objective
The PGIM S&P 500 Buffer 20 ETF - September (PBSE) 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 options to provide a 20% buffer against losses over a one-year period. This allows investors to participate in the upside of the S&P 500 Index while limiting potential downside risk.
✨ 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 through the use of S&P 500 Index options
- Resets the buffer protection annually in September
- Designed to limit downside risk and offer some upside participation
⚠️ 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
- Option risk: The use of options to implement the buffer protection strategy introduces additional risks, such as option pricing and liquidity
- Concentration risk: As a sector-specific ETF, it may be more volatile than a more diversified fund
- Liquidity risk: The ETF may have lower trading volume and liquidity compared to more established funds
👤 Best For
The PGIM S&P 500 Buffer 20 ETF - September 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.