gopixa
PGIM, the investment management arm of Prudential Financial (NYSE:PRU), has introduced two buffer exchange-traded fund series, the PGIM U.S. Large-Cap Buffer 12 ETF series and the PGIM U.S. Large-Cap Buffer 20 ETF series, it said on Tuesday.
The series will consist of a total of 24 ETFs, with 12% and 20% buffer ETFs launching on a rolling basis the first business day of each month throughout the year.
Listed on the Cboe BZX, the buffer ETFs provide exposure to an ETF that seeks to track the performance of the S&P 500. They will be offered at a 0.50% net expense ratio.
The ETFs seek to match the return of the underlying fund up to a predetermined upside cap, while providing a limited downside buffer against the first 12% (for the PGIM U.S. Large-Cap Buffer 12 ETF series) or 20% (for the PGIM U.S. Large-Cap Buffer 20 ETF series) of the underlying fund’s losses over a one-year target outcome period.
“Buffer ETFs provide investors with a more narrowly defined outcome range, which can offer more predictability in volatile markets,” said Stuart Parker, president and CEO of PGIM Investments.
