PGIM Nasdaq-100 Buffer 12 ETF - January (PQJA)

PGIM Nasdaq-100 Buffer 12 ETF Risks

The Fund invests in FLEX Options, which subjects the Fund to the risks of losing its premium paid for the option or that the price of the underlying reference asset drops significantly below the exercise prices and the Fund’s 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 Fund is 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 Fund seeks to provide. The Fund is subject to buffered loss risk in which there can be no guarantee that the Fund will be successful in its 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 Fund will not participate in gains in the Underlying ETF beyond the cap. The Fund is 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 Fund are closely related to the principal risks associated with the Underlying ETF. As an ETF, the Fund is 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 Fund is 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 a new and relatively small fund with limited operating history, the Fund is subject to the risk that its performance might not represent how it may perform long term and investments may have disproportionate impact on performance. The Fund 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 Fund is subject to management risk in which the subadviser will apply investment techniques and risk analyses in making investment decisions for the Fund, 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 Fund may invest in instruments that trade in lower volumes and are more illiquid than other investments. Certain transactions in which the Fund may engage may give rise to leverage which could result in increased volatility of investment return.

The Fund intends to qualify as a regulated investment company (“RIC”) 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 Fund are not clear, including the tax aspects of the Fund’s options strategy (including the distribution of options as part of the Fund’s inkind redemptions), the possible application of the “straddle” rules, and various loss limitation provisions of the Code.

The Fund is 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 Fund is 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 Fund to large scale redemption risk. These risks may increase the Fund’s share price volatility. The risks associated with the Fund are more fully explained in the Fund's prospectus and summary the Fund's prospectus and summary prospectus. There is no guarantee the Fund’s objective will be achieved.