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PGIM S&P 500 Max Buffer ETF - June
📎 Investment Objective
The PGIM S&P 500 Max Buffer ETF - June seeks to provide investors with exposure to the S&P 500 Index while aiming to limit downside risk during market downturns.
Overview
ETF tracking PGIM S&P 500 Max Buffer ETF - June
Performance
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Investment Summary
📎 Investment Objective
The PGIM S&P 500 Max Buffer ETF - June seeks to provide investors with exposure to the S&P 500 Index while aiming to limit downside risk during market downturns.
🎯 Investment Strategy
The ETF uses a buffer strategy that aims to protect against the first 10-15% of losses in the S&P 500 Index over a one-year period. This is achieved through the use of options contracts that provide a buffer against initial market declines.
✨ Key Features
- Seeks to limit downside risk in the S&P 500 Index by providing a buffer against the first 10-15% of losses
- Resets the buffer protection annually in June
- Provides exposure to the broader U.S. large-cap equity market through the S&P 500 Index
- Low 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
- Buffer risk: The buffer protection is limited to the first 10-15% of losses, and investors may still experience losses beyond that threshold
- Liquidity risk: As a new ETF, it may have lower trading volume and liquidity compared to more established funds
- Counterparty risk: The ETF's options-based strategy exposes it to the risk of the counterparty being unable to fulfill its obligations
👤 Best For
The PGIM S&P 500 Max Buffer ETF - June may be suitable for investors seeking exposure to the U.S. large-cap equity market with some downside protection, particularly those with a moderate risk tolerance and a medium-term investment horizon.