SEPP

📎 Investment Objective

The PGIM S&P 500 Buffer 12 ETF - September (SEPP) seeks to provide investors with exposure to the S&P 500 Index while aiming to limit downside risk to 12% over a one-year period.

✨ Key Features

• Provides exposure to the S&P 500 Index with a 12% buffer against losses over a one-year period
• Uses a call option and put option strategy to implement the buffer protection
• Resets the buffer protection annually in September
• Has a 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 risks as the underlying index
• Option-related risks: The use of options exposes the ETF to the risks associated with the options market, such as volatility and counterparty risk
• Liquidity risk: The ETF may have limited trading volume, which could affect its ability to be bought or sold at desired prices
• Regulatory risk: Changes in government regulations or policies could impact the ETF's ability to implement its investment strategy

👤 Best For

The PGIM S&P 500 Buffer 12 ETF - September may be suitable for investors who are seeking exposure to the S&P 500 Index with a level of downside protection, and who have a medium-term investment horizon. Investors should be comfortable with the risks associated with options-based strategies and understand the annual reset of the buffer protection.