PGIM Nasdaq-100 B 12 ETF (PQJL)

Overview

PQJL is an innovative financial product designed to offer a layer of protection against potential losses incurred by shares of Invesco QQQ Trust (QQQ) over a specified time frame, particularly covering a one-year period that commences each July. The fund aims to mitigate losses by utilizing options strategically, which allows it to forgo a certain level of upside potential in exchange for considerable risk protection. Notably, the fund secures a buffer against the first 12% of losses on QQQ shares, while it also provides dividends associated with QQQ based on option pricing rather than total returns. This careful structure means that should QQQ decline beyond the defined 12% buffer, investors would face losses on a one-to-one basis. It is critical for investors to hold onto the fund until the end of the designated outcome period to fully benefit from its protective characteristics. If shares are purchased outside the annual reset timeframe, the provided protection and buffer zones may differ. Additionally, the issuer regularly updates the public with interim levels for capping and protection through their online platform. It's important for investors to note that the fund's targeted cap and buffer are exclusive of the expense ratio that accompanies the fund's management, ensuring clarity in understanding potential returns. The actively managed fund exclusively utilizes FLEX options to optimize its strategies and outcomes for investors.

Products and Services

• Options-Based Loss Mitigation:

  This service employs options strategies aimed at reducing losses on QQQ shares, establishing a protective financial framework that buffers the investor from the first 12% decline in value.

• Annual Performance Reset:

  Every July, the fund undergoes an annual reset process which recalibrates the cap on potential upside participation, ensuring that the loss protection is refreshed and adjusted correspondingly to market conditions.

• Dividend Component Consideration:

  Investors are informed that dividends are managed within the option pricing strategy, focusing solely on share price rather than total return calculations, allowing for a clearer understanding of expected returns.

• Interim Cap Levels Publication:

  The fund issuer commits to transparency by providing ongoing updates regarding interim cap levels on its website, which keeps investors informed and allows them to make timely adjustments to their strategies as needed.

• Managed with FLEX Options:

  PQJL is actively managed solely using FLEX options, an advanced investment vehicle that provides enhanced flexibility and customization in risk management, thus aligning perfectly with the fund's strategic objectives.