PGIM S&P 500 Quarterly Buffer 20 ETF (PQXX)

The PGIM S&P 500 Quarterly Buffer 20 ETF is the deepest-buffer fund in PGIM's quarterly S&P 500 defined-outcome series. PGIM is the global investment management business of Prudential Financial.

The fund uses FLEX options on an S&P 500 index fund with the aim of absorbing the first 20% of index losses over each three-month outcome period. That relatively large buffer is paid for with an upside cap, set at the beginning of each quarter, which limits how much of the market's gain the fund can capture.

The options are rolled every quarter so the buffer and cap are refreshed regularly. The fund tracks price return only, so S&P 500 dividends are not passed through to shareholders.