PMSE
PGIM S&P 500 Max Buffer ETF - September
📎 Investment Objective
The PGIM S&P 500 Max Buffer ETF - September 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 potential of the index.
Overview
ETF tracking PGIM S&P 500 Max Buffer ETF - September
Performance
Price Chart
Investment Summary
📎 Investment Objective
The PGIM S&P 500 Max Buffer ETF - September 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 potential 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 maximum of 10-20%
- Caps the upside potential at a pre-determined level, typically around 15-20%
- Resets the buffer and cap on an annual basis in September
- Expense ratio of 0.00%
⚠️ Primary Risks
- Market risk: The ETF's performance is tied to the S&P 500 Index, so it is subject to the same market fluctuations
- Capped upside potential: Investors forgo gains above the pre-determined cap in exchange for the buffer
- Reset risk: The buffer and cap levels reset annually, which may be less favorable in subsequent periods
- Liquidity risk: As a new ETF, it may have lower trading volume and liquidity compared to more established funds
👤 Best For
This ETF may be suitable for investors seeking downside protection in the S&P 500 while still maintaining some upside exposure, and who have a medium-term investment horizon. It may be particularly appealing to those who are risk-averse or nearing retirement.