PMAP
PGIM S&P 500 Max Buffer ETF - April
📎 Investment Objective
The PGIM S&P 500 Max Buffer ETF - April seeks to provide investors with a buffer against losses in the S&P 500 Index up to a maximum cap, while providing exposure to the upside performance of the index.
Overview
ETF tracking PGIM S&P 500 Max Buffer ETF - April
Performance
Price Chart
Investment Summary
📎 Investment Objective
The PGIM S&P 500 Max Buffer ETF - April seeks to provide investors with a buffer against losses in the S&P 500 Index up to a maximum cap, while providing exposure to the upside performance of the index.
🎯 Investment Strategy
The ETF uses a buffered outcome strategy, where it purchases S&P 500 Index options with a pre-determined upside cap and downside buffer. This aims to limit losses to a certain percentage while also capping the maximum gains.
✨ Key Features
- Provides a buffer against losses in the S&P 500 Index up to a certain percentage
- Caps the maximum gains that can be achieved, limiting upside potential
- Resets the buffer and cap on an annual basis in April
- Designed for investors seeking downside protection with some equity market exposure
⚠️ Primary Risks
- Market risk - The ETF's performance is tied to the S&P 500 Index, and it will be subject to the same market fluctuations
- Capped upside potential - The maximum gains are limited by the ETF's option strategy
- Reset risk - The buffer and cap levels are reset annually, which can impact performance
- Liquidity risk - As a new ETF, it may have lower trading volume and liquidity
👤 Best For
This ETF may be suitable for investors who are looking for some downside protection in their equity exposure, but are willing to forgo unlimited upside potential in exchange for the buffer against losses. It could be a component of a diversified portfolio, but may not be appropriate for investors seeking maximum equity market participation.