PGIM S&P 500 Max Buffer ETF - December (PMDE)

Overview

PMDE is an investment fund that strategically employs FLEX options to align the price returns of the SPDR S&P 500 ETF Trust (SPY) with investor expectations. The fund aims to ensure a predetermined upside cap of at least 3%, while also providing an impressive buffer against downside loss, capped at 100% over a designated one-year period commencing in December. This innovative approach allows the fund to adapt its parameters for the upcoming target outcome periods based on current market conditions. If market circumstances make it challenging to maintain the maximum buffer against total losses, the fund is prepared to make necessary adjustments to the cap. Conversely, if conditions hinder the establishment of a cap of at least 3%, the fund will actively seek to revise the maximum buffer in response. To fully benefit from the targeted outcomes offered by the fund, investors are required to maintain ownership of the fund shares throughout the entire duration of the specified target outcome period.

Products and Services

• FLEX Options Strategy:

  This strategy is the cornerstone of PMDE, utilizing FLEX options to match the price returns of the SPDR S&P 500 ETF Trust (SPY). By leveraging these options, the fund aims to achieve optimal investor outcomes by setting a predictable upside cap and a robust downside buffer.

• Upside Cap Implementation:

  PMDE is committed to providing an upside cap of at least 3%. This predetermined cap serves as a safeguard for investors, ensuring that they receive returns in line with market growth, while still adhering to the fund's risk management protocols.

• Downside Buffer Protection:

  The fund offers a notable buffer against losses, guaranteeing a protective cushion that spans 100% over the one-year target outcome period. This essential component of PMDE provides investors peace of mind, as it mitigates the impact of adverse market fluctuations.

• Dynamic Adjustments:

  In response to prevailing market conditions, PMDE actively resets the upside cap and downside buffer at the end of each target outcome period. Such adaptability ensures that the fund remains aligned with the current investment landscape, catering to the ongoing needs of its investors.

• Long-term Investment Commitment:

  To harness the full potential of the target outcomes, investors are required to hold their shares for the entire designated target outcome period. This long-term commitment reinforces the fund's strategy and helps in realizing the anticipated benefits.