PGIM: New Laddered Buffer ETFs Launch
- 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.
- These new PGIM ETFs provide investors with exposure to U.S.
- Specifically, the PGIM Laddered Fund of Buffer 12 ETF seeks to invest equally in each of the 12 PGIM U.S.
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.
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