PGIM Launches Laddered ⁢Buffer ETFs ⁣for Large-Cap exposure

​ Updated ⁢June 04,2025

PGIM,the $1.34 ⁢trillion global investment management arm of Prudential financial, Inc., has⁤ expanded its ETF offerings with the launch⁢ of two laddered ⁣buffer ETFs. ⁢This follows the January debut of the PGIM U.S. Large-Cap Buffer 12 and 20 ETF‌ series. the new funds are ‌the PGIM Laddered Fund‌ of Buffer 12 ETF and the PGIM​ Laddered Fund of Buffer 20 ETF.

These new PGIM ETFs provide investors with‍ exposure ⁢to U.S. large-cap equity markets through a laddered portfolio of underlying buffer etfs.⁢ These underlying ETFs aim ‌to provide a degree of protection against market declines, while‌ also capping potential capital gratitude over​ a specific period. The‍ firm‍ states ⁣that both ETFs will be offered‍ at⁢ a​ net expense ratio of 0.50%,positioning them as the lowest-cost fund of buffer ETFs currently ⁤available.

Specifically, the PGIM ⁤Laddered Fund of Buffer 12 ETF seeks to invest equally in⁣ each⁣ of the 12 PGIM U.S. Large-Cap Buffer 12 ETFs. Similarly, the PGIM⁢ Laddered Fund of Buffer 20 ETF aims for equal investment in each of the⁢ 12 PGIM U.S. Large-Cap Buffer 20 ETFs.⁣ Both​ funds are rebalanced quarterly to maintain this equal ⁢weighting.

All⁣ 24 buffer ‌etfs are designed to mirror the SPDR S&P 500 ETF Trust. However, they incorporate options ⁤trading strategies to limit potential losses to 12% ‍for ‌the Buffer 12 ETFs and 20% for the Buffer 20 ETFs.

“We’ve seen strong client‍ demand for both the⁢ underlying buffer etfs and ⁣also single-ticker solutions that can provide‍ efficient exposure to this style of investing while reducing ⁣some‍ of the operational load ​of investing ‌in the individual monthly vintages,” said Stuart Parker, president and CEO of PGIM Investments.

What’s next

With these new laddered buffer ETFs, PGIM aims to provide​ investors ⁤with more efficient and ⁢accessible‌ tools for managing risk and participating in the U.S. large-cap equity market. The firm will ‌likely continue to​ monitor investor⁢ demand and explore further innovations in its ETF product line.