PGIM S&P 500 Buffer 20 ETF - August (PBAU)

PGIM S&P 500 Buffer 20 ETF - August (PBAU) is an actively managed defined-outcome exchange-traded fund from PGIM Investments. It seeks to provide returns that match the price return of the S&P 500 Index up to a predetermined cap, while buffering against the first 20% of losses, over an outcome period of about one year that begins each August.

To create this payoff, the fund holds a portfolio of FLEX options on the S&P 500 or on an ETF that tracks it, combining purchased and written options so that downside protection is paid for by giving up gains above the cap. The cap level is reset at the start of each new outcome period based on market conditions, while the 20% buffer stays the same.

The buffer and cap apply in full only to shareholders who hold from the first day to the last day of the outcome period. Investors buying mid-period may receive a different amount of protection and upside. Dividends on S&P 500 stocks are not captured by the strategy.