INVESTING IN PGIM BUFFER ETFs
Individual outcome-oriented investment solutions to help navigate market volatility
PGIM BUFFER ETF OFFERINGS
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| Buffer Level (%) | Ticker | Series | Ref. Asset | ETF Market Price (Daily $) | ETF Return (Market Price) (%) | Ref. Asset Return (%) | Remaining Cap (%) | Remaining Buffer (%) | Downside Before Buffer (%) | Ref. Asset Return to Cap (%) | Remaining Outcome Period (Days) | Outcome Period | Expenses | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross | Net | Gross | Net | Gross | Net | Start | End | ||||||||||
1 Before fees and expenses.
2 Certain Series may have a shorter Target Outcome Period during its first year of operations. It is anticipated that future Target Outcome Periods will be for one-year periods.
PGIM BUFFER ETF FUNDS RISKS
The Funds invest in FLEX Options, which subjects the Funds to the risks of losing their premium paid for the option or that the price of the underlying reference asset drops significantly below the exercise prices and the Funds’ loses are substantial. FLEX Options are also subject to the risk that they may be less liquid than other securities, including standardized options. FLEX Options are subject to trading risks and valuation risks because they are market traded and centrally cleared by the OCC. The Funds are designed to deliver returns that approximate the Underlying ETF if Fund shares are bought on the first day of a Target Outcome Period and held until the end of the Target Outcome Period, subject to the buffer and the cap. If an investor purchases Fund shares after the first day of a Target Outcome Period or sells shares prior to the expiration of the Target Outcome Period, the returns realized by the investor will not match those that the Funds seek to provide.
The Funds are subject to buffered loss risk in which there can be no guarantee that the Funds will be successful in their strategy to provide downside protection against Underlying ETF losses; cap change risk in which the cap may rise or fall from one Target Outcome Period to the next and is unlikely to remain the same for consecutive Target Outcome Periods; and capped upside risk where the Funds will not participate in gains in the Underlying ETF beyond the cap. The PGIM S&P 500 Max Buffer ETFs may have a buffer significantly below 100% in certain Target Outcome Periods. The Funds are subject to Underlying ETF risk in which the value of an investment in the Fund will be related to the investment performance of the Underlying ETF. Therefore, the principal risks of investing in the Funds are closely related to the principal risks associated with the Underlying ETF. As ETFs, the Funds are subject to risks involved with: ETF shares trading risk (including the risk of the shares trading at a premium or discount to net asset value or the lack an active trading market); authorized participant concentration risk; and the risk of transacting in cash versus in-kind. The PGIM Nasdaq-100 Buffer ETFs are subject to Technology Sector Risk in that the Underlying ETF's assets may be concentrated in the technology sector and may be more affected by the performance of the technology sector than a fund that is less concentrated.
As new and relatively small funds with limited operating history, the Funds are subject to the risk that their performance might not represent how they may perform long term and investments may have disproportionate impact on performance. The Funds will be indirectly exposed to equity and equity-related securities, where the value of a particular security could go down resulting in a loss of money; large capitalization companies which may go in and out of favor based on market and economic conditions; and derivative securities, which may carry market, credit, and liquidity risks. Derivatives are subject to counterparty risk, which is the risk that the other party in the transaction will be unable or unwilling to fulfill its contractual obligation, and the related risks of having concentrated exposure to such a counterparty.
The Funds are subject to management risk in which the subadviser will apply investment techniques and risk analyses in making investment decisions for the Funds, but the subadviser’s judgments about the attractiveness, value or market trends affecting a particular security, industry or sector or about market movements may be incorrect and liquidity risk in which the Funds may invest in instruments that trade in lower volumes and are more illiquid than other investments. Certain transactions in which the Funds may engage may give rise to leverage which could result in increased volatility of investment return.
The Funds intend to qualify as regulated investment companies (“RICs”) under Subchapter M of the U.S. Internal Revenue Code of 1986, as amended (the “Code”); however, the federal income tax treatment of certain aspects of the proposed operations of the Funds are not clear, including the tax aspects of the Funds’ options strategy (including the distribution of options as part of the Fund’s in-kind redemptions), the possible application of the “straddle” rules, and various loss limitation provisions of the Code.
The Funds are subject to market risks, including economic risks, as well as market disruption and geopolitical risks (the value of investments may decrease, and international conflicts and geopolitical developments may adversely affect the U.S. and foreign financial markets, including increased volatility). The Funds are nondiversified for purposes of the 1940 Act. Investing in a nondiversified fund involves greater risk than investing in a diversified fund because a loss resulting from the decline in value of any one security may represent a greater portion of the total assets of a nondiversified fund. Large shareholders could subject the Funds to large scale redemption risk. These risks may increase the Funds’ share price volatility. The risks associated with the Funds are more fully explained in the Funds’ prospectuses and summary prospectuses. There is no guarantee the Funds’ objective will be achieved.
This material is being provided for informational or educational purposes only and does not take into account the investment objectives or financial situation of any client or prospective clients. The information is not intended as investment advice and is not a recommendation. Clients seeking information regarding their particular investment needs should contact their financial professional.
Consider a fund's investment objectives, risks, charges, and expenses carefully before investing. The prospectus and summary prospectus contain this and other information about the fund. Contact your financial professional for a prospectus and summary prospectus. Read them carefully before investing.
Investment products are distributed by Prudential Investment Management Services LLC, member FINRA and SIPC. PGIM Investments is a registered investment adviser and investment manager to all PGIM U.S. open-end investment companies. PGIM Quantitative Solutions is a registered investment advisor. All are Prudential Financial affiliates. © 2024 Prudential Financial, Inc. and its related entities. PGIM Quantitative Solutions, PGIM, PGIM Investments, and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
Investment Products: Are not insured by the FDIC or any other federal government agency, may lose value, and are not a deposit of or guaranteed by any bank or any bank affiliate
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