NEWARK, N.J.–(BUSINESS WIRE)–PGIM,1 the $1.2 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU), has launched two buffer ETF series, the PGIM U.S. Large-Cap Buffer 12 ETF series and the PGIM U.S. Large-Cap Buffer 20 ETF series (“the ETFs”), listed on the Cboe BZX. 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.
The ETFs will be offered at a 0.50% net expense ratio, making them the lowest cost one-year target outcome buffer ETFs in the marketplace.2
The Buffer ETFs provide exposure to an ETF that seeks to track the performance of the S&P 500 Index (“the Underlying Fund”), offering investors a defined range of potential outcomes. 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. 3
“In times of market uncertainty, our clients are looking for ways to participate in the market’s upside, while tempering downside risks,” said Stuart Parker, president and CEO of PGIM Investments. “Buffer ETFs provide investors with a more narrowly defined outcome range, which can offer more predictability in volatile markets.”
The Buffer ETFs are subadvised by PGIM Quantitative Solutions (PGIM Quant), the quantitative equity, multi-asset and liquid alternatives specialist of PGIM.
“PGIM Quant has been managing options trading strategies for institutional investors for more than 30 years,” said Linda Gibson, CEO of PGIM Quantitative Solutions. “The Buffer ETF series represents yet another enhancement to our suite of offerings for clients who are looking for meaningful upside access while helping to mitigate risk.”
With the launch of the initial Buffer ETFs, PGIM Investments now offers 16 active ETFs, doubling its lineup over the last year.
ABOUT PGIM INVESTMENTS
PGIM Investments LLC and its affiliates offer more than 100 funds globally across a broad spectrum of asset classes and investment styles. All products draw on PGIM’s globally diversified investment platform that encompasses the expertise of managers across fixed income, equities, alternatives and real estate.
ABOUT PGIM QUANTITATIVE SOLUTIONS
PGIM Quantitative Solutions is the quantitative equity, multi-asset and liquid alternatives specialist of PGIM. For more than 45 years, PGIM Quantitative Solutions has helped investors around the world solve their unique needs by leveraging the power of technology and data as well as advanced academic research. As of Sept. 30, 2023, PGIM Quantitative Solutions managed $89 billion in client assets.4 For more information, please visit pgimquantitativesolutions.com.
PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU), is a leading global investment manager with more than $1.2 trillion in assets under management as of Sept. 30, 2023. With offices in 18 countries, PGIM’s businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including public fixed income, private fixed income, fundamental equity, quantitative equity, real estate and alternatives. For more information about PGIM, visit pgim.com.
Prudential Financial, Inc. (PFI) of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. For more information please visit news.prudential.com.
1 The term PGIM as used in this announcement includes PGIM Investments LLC, an indirect, wholly owned subsidiary of Prudential Financial, Inc.
2 Source: Morningstar Direct as of Nov. 30, 2023.
3 Before fees and expenses.
4 AUM totals shown include assets of PGIM Wadhwani LLP, which is a separate legal entity.
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.
Investing in ETFs involves risks. Some ETFs have more risk than others. The investment return and principal value will fluctuate and shares when sold may be worth more or less than the original cost and it is possible to lose money.
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